Raken, a Carlsbad provider of mobile apps and software for the construction industry, has raised $10 million in a first round of venture capital funding led by Bay Area investment firms U.S. Venture Partners and Tao Capital Partners.
The 53-employee company will use the money to expand its mobile job-site software into new areas, including digital time cards.
Since it launched an early product in 2014, Raken has grown to 3,000 customers in 50 states and 89 countries. Its daily reporting app has been used by builders working on recent high-profile projects such as the Mercedes-Benz Stadium in Atlanta and the Transbay Transit Center and Salesforce Tower in San Francisco.
The company focuses on in-the-field technologies. Its top product is a smartphone app and web-based software to streamline daily job site reporting – a time consuming compliance requirement that charts job progress and creates a paper trail to protect against litigation.
“If you walk by a job site and you see people wearing hard hats, there is a ton of reporting and communication requirements for these people — not only between all the different subcontractors and the general contract but also back to the (main) office,” said Kyle Slager, founder and chief executive of Raken. “That is where we live – creating the fastest, easiest way to complete those reporting requirements while also providing a communication platform for people working in the field to help the project move along more efficiently.”
Customers include large national construction firms such as Turner Construction to small, specialty trade subcontractors.
“The construction industry in general is a conservative industry, and it is very fragmented,” said Sergey Sundukovskiy, chief technology officer and co-founder. “So people are still used to doing things the old way. We joke that our main competition is pen and paper.”
Hundreds of technology start-ups, however, are targeting the $7 billion and growing construction software market, said Slager. It has been a hot area for venture capital investment as well.
About a year ago, Raken raised $2 million in a seed round of funding led by Rincon Venture Partners, with participation from Eniac Ventures and Spider Capital. All three participated in this latest funding round.
In addition to daily job reporting, Raken has launched a mobile time card feature for crews in the field. The company plans to add additional features in the future.
“More companies in the construction industry are embracing new technologies, and Raken is at the forefront of that adoption when it comes to daily reporting, workforce time tracking and other field management solutions,” said Dafina Toncheva of U.S. Venture Partners.