Procore Technologies, a provider of software to manage construction projects, is now worth $3 billion thanks to a new $75 million round of funding led by Tiger Global Management.
The new funding shows just how completely software has eaten the world. Once considered an industry that was too analog to ever reap the benefits of technology’s management tools, software and services for the construction industry have seen some big exits and big money come in over the past three years.
Unicorns abound among the companies that are trying to serve various aspects of the construction industry. SoftBank kicked off 2018 by investing $865 million in Katerra — one of many early mega-deals from the firm’s giant Vision Fund — which touts itself as a one-stop shop for everything from planning to permitting to filling new building construction. In November, another software developer that was contending for the construction market, PlanGrid, was acquired by Autodesk in an $875 million transaction.
Taking new money from Tiger Global to expand makes sense, given the competitive advantage that PlanGrid gained in the market by tying up with a $30 billion powerhouse in software development for the architecture, design and construction industry. Autodesk is the maker of AutoCAD — one of the fundamental tools that architects, designers and construction companies use for two and three-dimensional renderings of buildings. By integrating the design management and construction planning toolkits, Autodesk created a more integrated offering for customers.
Indeed, Procore said it would use the cash to ramp up its partner expansion and to continue to invest in new products and services and hiring new talent.
Based in Carpinteria, Calif., Procore already has more than 1,300 employees working in 12 offices around the world and is working with more than 5,000 different customers on projects.
Additional investors in Procore include Bessemer Venture Partners, Iconiq Capital and Lumia Partners.
Tooey Courtemanche, founder and CEO of Procore, photographed in front of Procore’s headquarters, Carpinteria, CA, 9/7/18.