San Francisco — BlueTape, a payments and financing provider for the construction industry, today announced the closing of a $50 million debt funding led by Arcadia Funds and a $5 million seed round led by Chicago Ventures. Other investors include construction industry executives, real estate developers, and Plug and Play Ventures.
This funding gives BlueTape the resources to continue providing payments and financing for the construction industry. BlueTape will increase lending, expand its team, and develop new products to help construction businesses address the nation’s housing and infrastructure crisis.
The US construction industry market size is over $1.3 trillion, made up of over 3 million small and medium-sized businesses, BlueTape says. Unfortunately, the industry lags behind others in technology adoption and has been neglected by traditional financial institutions. BlueTape blends affordable financing options with easy-to-use accounts receivable and invoice management tools. Construction pros can use BlueTape credit to buy building materials at any supplier and pay back over time. BlueTape has also forged a community of construction industry dealers and suppliers that offer BlueTape credit instantly to their trade customers. This allows the construction suppliers to lower their risk and improve their cash flow and customer experience.
“We are excited to partner with BlueTape to provide affordable financing on demand for this industry. With the current economic uncertainty, BlueTape is needed more than ever to help construction businesses of all sizes operate successfully and thrive,” stated Andrew Hallowell, managing director and CEO at Arcadia Funds. “Arcadia is constantly on the lookout for these opportunities, having built a powerful portfolio over the past several years by helping similar agile and innovative lenders like BlueTape make lives better with credit.”\
Jackie DiMonte, partner at Chicago Ventures, said, “Given the team’s background, we strongly believe BlueTape is the right company to tackle one of the fundamental obstacles for any construction business. They are paving the way for small businesses in the industry to have access to working capital and benefit from adopting new technology.”
Key Benefits for Construction SMBs
- Convenient funding: Quick access to much-needed funding for building materials keeps existing jobs moving and allows for more new revenue-generating projects.
- Designed for SMBs in Construction: Higher approval rate for small construction businesses than other solutions.
- Repay over time: Helping small businesses manage cash flow is more critical than ever in a time of inflation. BlueTape gives contractors up to 120 days to pay their building material invoices.
- Accepted at nation’s top building material suppliers: BlueTape credit can be used at all the building suppliers that industry professionals use and trust.
- Easy to use: Managing invoices, collecting payments, and paying bills with BlueTape on mobile is simple and convenient for construction pros who are always on the move.
“We have had enormous demand from construction businesses for our services since we launched. Inflation and supply chain interruptions mean builders and contractors need more working capital. With the funding from Arcadia and Chicago Ventures, we will be able to help more construction companies get the financing and payments services they need to navigate economic uncertainty and supply chain issues,” said Yaser Masoudnia, CEO and co-founder of BlueTape.
SOURCE LBM Journal, See original article published HERE