As of late, there has been an infusion of funds into many of the young tech startups coming out of Silicon Valley and across the country. But will this money help to jumpstart innovation in the construction industry?
ERP (enterprise-resource planning) software, which has its roots in manufacturing, first emerged on the construction scene more than 20 years ago. While there are still many large players in the space that connect project management and financials, new startups focused on enhancing collaboration are looking to shake up the space and have the money to do it.
Two recent examples specifically focus on enhancing collaboration among the construction supply chain in the payment and loan process.
The first comes from Built Technologies, www.getbuilt.com, Nashville, Tenn., which is a SaaS (software-as-a-service) construction loan administration platform. It changes the process for banks, construction professionals, and inspectors. One such company using the technology is Homes By Dickerson, www.homesbydickerson.com, Raleigh, N.C., which is able to save time and money, while improving the entire process of inspections and draws.
This is unique in that it is a product that focuses on a very niche process in the industry. The company has also received $21 million funding to help build the product and the business.
As another example, zlien, www.zlien.com, New Orleans, Ore., recently received $10 million to help eliminate construction liens. The company has a collaboration-driven construction payment system that connects stakeholders to make payment documentation and liens easy.
Traditionally, the construction industry uses attorneys and paperwork to sort out payment issues, but this technology provides better visibility. The latest investment brings the company’s total funding to date to $16.7 million, which the company plans to use to fuel its growth and develop products.
While these are just two examples specifically related to payment and the loan process, many new tech startups continue to receive funding. However, the question remains: Will all this money inspire greater innovation in the space and disrupt the status quo? Only time will tell.
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