New York-based Adaptive has closed a $19 million Series A funding round led by San Francisco-based Emergence Capital, as it aims to transform payment systems in the construction industry.
Definition, Exponent, 3kvc, Box Group — all of New York — and West Coast’s Andreessen Horowitz and angel investor Gokul Rajaram also participated. So far, Adaptive has raised $26.4 million from investors.
Holistic Platform
Founded in 2023, Adaptive uses advanced technologies including AI to automate financial management, in a bid to address an estimated loss of $273 billion annually, caused by archaic processing systems. Its platform offers end-to-end financial management, including budgeting, cash flow analytics, expense tracking, accounts payable, accounts receivable, vendor management, and electronic payments.
“The payment delays and cash-flow problems we see in construction largely arise from outdated, manual back-office processes,” said Adaptive co-founder and CEO Matt Calvano, a former Morgan Stanley investment banker. “Our platform leverages AI and automation to cut through this back office fog, delivering real-time clarity into financials and significantly accelerating payments.”
In a LinkedIn post, Calvino said Adaptive was “on a mission to make construction finance fast, accurate, and easy.” It shouldn’t be so difficult and costly to know how your projects are performing in real-time, to close your books, or to get paid, he added.
Commercial Real Estate
MacKenzie Companies
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Nevins & Associates
Financial Services / Investment Firms
Chesapeake Corporate Advisors
Commercial Real Estate
Monday Properties
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Blue Delta Capital Partners
Internet / Technology
Foxtrot Media
Significant Savings
More than 280 construction companies use Adaptive’s platform to manage over $1.4 billion of project volume, according to the company. Its customers span small- to medium-sized construction businesses, including custom homebuilders, commercial general contractors, real estate developers, and specialty trades.
One customer, Boston-based NS Builders, said Adaptive’s platform helped his firm reclaim $100,000 in reimbursable expenses it lost annually on account of “error-prone” cost tracking. Every builder has the same problem, leading to higher prices across the board, he added. Another customer, Risinger Build, said Adaptive “has completely supercharged our back-office process.”
Adaptive has had partnerships with vertical software companies such as Veeva and payments innovators, such as Bill.com. It plans to make further improvements of its platform, notably to build an integrated financial ecosystem that connects developers, general contractors, and subcontractors.
