Adaptive raised $19 million in a Series A funding round to scale its artificial intelligence-powered financial platform for businesses in the construction industry.
The platform was launched in February 2023 and now has more than 280 construction companies managing over $1.4 billion of project volume on the platform, Adaptive said in a Monday (July 15) press release.
The company plans to grow its team, reach more construction companies across the United States, and expand its product into an integrated financial ecosystem connecting developers, general contractors and subcontractors, according to the release.
“The payment delays and cash flow problems we see in construction largely arise from outdated, manual back-office processes,” Adaptive co-founder and CEO Matt Calvano said in the release. “Our platform leverages AI and automation to cut through this back-office fog, delivering real-time clarity into financials and significantly accelerating payments.”
Adaptive’s platform is designed to help small- to medium-sized businesses (SMBs) manage the construction industry’s unique accounting and compliance requirements and solve its common payment delays and cash flow crunches, according to the release.
The platform manages budgeting, cash flow analytics, expense tracking, accounts payable, accounts receivable, vendor management and electronic payments, the release said.
Its users include custom homebuilders, commercial general contractors, real estate developers, specialty trades and other SMB construction firms,
Emergence Capital led Adaptive’s latest funding round, and Emergence Capital General Partner Kevin Spain will join the company’s board, per the release.
“Adaptive’s innovative approach to solving construction’s financial challenges is both timely and necessary,” Spain said in the release. “Adaptive is set to build a generational company and redefine how money moves across this critical part of the economy.”
Thirty percent of construction firms are looking to technology to help them improve operations and resilience, according to the PYMNTS Intelligence report “Building Better Cash Flow in Construction with Digital Payments.” These firms plan to add technology to accelerate payments, reduce financing costs and streamline back-office processes.
Another company offering a connected construction technology ecosystem is Trimble, which said in May that it acquired Flashtract to add construction payment, compliance and lien waiver capabilities to that ecosystem.
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