Field Materials, the leading AI software to control and verify construction material and equipment spending, raised an additional $3.5M to bring its total Seed funding to $8.15M. In Q1 2024, the company's customer base grew 3x, annual recurring revenue grew 8x, and the total volume of orders more than doubled.
PALO ALTO, Calif., June 4, 2024 /PRNewswire-PRWeb/ -- Field Materials, the leading AI software to control and verify construction material and equipment spending, raised an additional $3.5M to bring its total Seed funding to $8.15M. The round was led by new investors DivcoWest Ventures, Navitas Capital, Zelda Ventures, and Flyer One Ventures alongside existing investors Blumberg Capital, s16vc, Zacua Ventures, and several prominent industry executives. The company was founded two years ago by Eldar Sadikov and Victor Gane, serial entrepreneurs out of Stanford, with backgrounds in AI and construction. Their previous AI startup was acquired by PayPal in 2018.
Over $300B is spent annually by US commercial contractors on material purchases. Tens of thousands of purchasing and accounting professionals have to manually enter data for purchase orders (POs) and invoices every day. Field Materials' AI technology eliminates 90% of the PO and invoice processing time, transforming the productivity of construction companies. Moreover, the company's AI automatically identifies vendor billing errors to save contractors 5-10% in material costs.
The company's latest funding was raised in response to strong customer demand since Field Materials' market launch in mid-2023. In Q1 2024, the company's customer base grew 3x, annual recurring revenue grew 8x, and the total volume of orders more than doubled. Field Materials now supports customers across eight different construction trades, integrates with the top eight accounting software systems in construction, and partners with professional organizations across four trades (SMACNA, NFCA, SWACCA, CFMA).
Field Materials' AI capabilities have been the major driver for customer demand. The proprietary technology was built and trained using tens of thousands of vendor quotes, invoices, and packing slips from customers across eight different construction trades. It leverages state-of-the-art large language models (LLMs) and can read and interpret new vendor documents that it has not previously seen, without additional training.
"We have been looking for a solution like Field Materials for a while. As the IT Director of a General Contractor with four different divisions, I was very excited to discover Field Materials and bring this powerful technology to help streamline and speed up the procurement process across all our companies," said Gay Lynn Anderson from McAlvain Construction, Inc. in Boise, ID.
The new funding will be used to expand the company's sales and customer success teams to further accelerate its growth. In addition, the company is expanding its engineering team to further solidify its position as the leading AI procurement solution in construction.
"As a proptech and construction tech focused fund, our strong industry ties helped us validate the power of the Field Materials platform. Their cutting-edge technology, outstanding team, and rapidly growing customer base solidified our decision to back them as the emerging leader and innovator in this space," said Breton Birkhofer, Managing Director at DivcoWest Ventures in San Francisco.
About Field Materials
Field Materials is the leading AI procurement platform for contractors to control and verify spending. Its web and mobile apps streamline material purchasing and equipment rentals by eliminating manual data entry for quotes, invoices, packing slips, and receipts, and saving 5-10% in material costs by automatically identifying billing errors. Founded by serial entrepreneurs with successful exits, the company is backed by leading venture capital funds and senior executives from companies like Lowe's and Google. For more information, please visit www.fieldmaterials.com.
Media Contact
PR Manager, Field Materials, Inc., 1 415-237-3727, [email protected], https://www.fieldmaterials.com/
SOURCE Field Materials, Inc.
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