tiger global leads $30m investment into briq, a fintech for the construction industry

Briq Secures $30 Million in Series B Funding

Briq, a fintech platform provider for the construction sector, has successfully completed a $30 million Series B funding round. This financing was spearheaded by Tiger Global Management.

The investment represents one of the largest Series B rounds secured by a construction software startup, as stated by the company. It increases Briq’s total funding to $43 million since its launch in January 2018.

Existing investors, including Eniac Ventures and Blackhorn Ventures, also contributed to this funding round.

Leadership and Background

Bassem Hamdy, the CEO and co-founder of Briq, previously held an executive position at Procore, a prominent construction technology company. Procore recently became a public company with a market capitalization of $10.4 billion. He also has experience with Canadian software firm CMiC.

Ron Goldshmidt, a Wall Street veteran, serves as the co-founder and COO of Briq.

Platform Capabilities

Briq offers a financial planning and workflow automation platform designed to significantly reduce the time required for crucial financial processes.

The platform also aims to enhance the precision of financial forecasts and planning.

Briq has created a unique set of technologies that enable the extraction and manipulation of financial data without relying on APIs.

Furthermore, the company has developed specialized data models for the construction industry, facilitating the creation of project cost projections and profitability models.

Currently, Briq manages or forecasts approximately $30 billion in construction volume.

Key Offerings: CPM and BriqCash

Briq’s product suite includes two primary offerings:

• Briq’s Corporate Performance Management (CPM) platform: This models financial results at both the project and corporate levels.
• BriqCash: A banking platform specifically designed for the construction industry, handling invoices and payments.

In essence, Briq strives to provide contractors with a unified platform to manage the entire financial cycle, “from plan to pay.”

This addresses the common challenge of construction projects exceeding their initial budgets.

The company’s long-term goal is to oversee 80% of financial workflows within the construction industry within the next decade.

Growth and Customer Base

The company’s strategy has demonstrated positive results to date.

According to Hamdy, the company’s Annual Recurring Revenue (ARR) has increased by 200% from January 2020.

Briq’s workforce has expanded to approximately 100 employees, up from 35 a year ago.

The company currently serves 150 customers, including general and specialty contractors with revenues ranging from $10 million to $1 billion.

Notable clients include Cafco Construction Management, WestCor Companies, Choate Construction, and Harper Construction.

While currently focused on the North American market, Briq intends to expand into larger international markets in the future, as Hamdy shared with TechCrunch.

The Genesis of Briq

The concept for Briq, headquartered in Santa Barbara, California, originated with Hamdy's observation of substantial inefficiencies within the financial operations of the construction sector. His vision was to revolutionize construction finance in a manner analogous to how Procore transformed document management and PlanGrid streamlined construction drawings.Briq was initially funded through Hamdy’s personal capital, generated from secondary sales as Procore ascended to become a prominent startup – a “unicorn” – within the construction industry.

Hamdy articulated his ambition, stating, “I sought to integrate the strengths of fintech into the construction industry, which frequently relies on estimations when predicting project financial results.” This statement was made during the company’s previous funding round – a $10 million Series A led by Blackhorn Ventures, announced in May 2020.He emphasized the difficulty in accurately forecasting financial outcomes, noting that predicted costs to completion are often significantly inaccurate.

Indeed, research from McKinsey reveals that a remarkable 80% of construction projects exceed their allocated budgets, leading to considerable waste and diminished profitability.

Consequently, contractors frequently encounter situations where actual expenditures surpass initial projections at the conclusion of a project. This can result in adverse cash flow and reduced profits. Briq’s platform is designed to assist contractors in pinpointing anomalies and identifying projects with heightened risk.

Hamdy reported that Briq demonstrated significant utility for contractors throughout the COVID-19 pandemic.

He further explained, “Within an industry characterized by narrow margins, we have empowered contractors with the ability to gain a clear understanding of their financial position regarding cash flow, profitability, and labor costs.”