Adaptive has secured a $19m in Series A funding round to bring AI-powered financial platform to the $2tn construction industry
The unique accounting and compliance requirements of the construction industry mean payment delays and cash flow crunches are commonplace. This introduces significant risk and inefficiency to the build process, that together amount to estimated losses of $273bn in losses across the sector.
AI-powered financial management
Adaptive aims to address this by combining AI, automation and intuitive design in a financial management platform built specifically for the construction industry.
It offers end-to-end financial management, including budgeting, cash flow analytics, expense tracking, accounts payable, accounts receivable, vendor management and electronic payments.
Since its launch in February 2023, Adaptive has grown rapidly, with more than 280 construction companies managing over $1.4bn of project volume on the platform.
The company is now set to scale, with the recent investment led by Emergence Capital, along with participation from Andreessen Horowitz, Definition, Exponent, 3kvc, Box Group, and Gokul Rajaram. This brings Adaptive’s total capital raised to $26.4m.
Cutting through back-office fog
Matt Calvano, co-founder and CEO of Adaptive, said: “The payment delays and cash flow problems we see in construction largely arise from outdated, manual back-office processes.
“Our platform leverages AI and automation to cut through this back-office fog, delivering real-time clarity into financials and significantly accelerating payments.
Francisco Enriquez, co-founder and CFO, added: “Our rapid growth is a testament to both the demand small and medium-sized construction businesses have for modern, intuitive financial tools and how underserved they are by the options available to them.”
Kevin Spain, GP at Emergence Capital, who will be joining Adaptive’s board, said: “Adaptive’s innovative approach to solving construction’s financial challenges is both timely and necessary.
“Adaptive is set to build a generational company and redefine how money moves across this critical part of the economy.
“Emergence brings significant expertise to the table, having been early partners to both industry-defining vertical software companies such as Veeva, as well as payments innovators such as Bill.com.”
The Series A funding will fuel Adaptive’s growth, supporting the expansion of its engineering and product teams and enhancing efforts to reach more construction companies across the United States.
