TraceAir, a construction site development platform, announced that it has completed a $3.5 million Series A investor funding round led by London-based XTX Ventures.
This news is important because it illustrates the growing number of companies willing to invest in technology for the construction sector. Other technology companies in the construction industry to receive recent funding include:
- Iris Automation for its drone software and hardware.
- Versatile's CraneView that analyzes data points to provide real-time insights on the job site.
- Flexiv, an industrial robotics company.
- Elsight, which provides beyond visual line of sight capabilities (BVLOS) to drones.
- Matrak, cloud-based materials and progress tracking software.
- DroneDeploy, which develops software for drones.
The news also shows that construction companies are willing to invest in construction technology in a big way.
"We have been in the industry for over 100 years, and now are seeing it fundamentally change due to the coronavirus pandemic," says Brian McCosker, president of Independent Construction, a California-based grading and paving company. "New working practices and safety requirements raise the importance of automation tools, enabling us to complete many tasks remotely and to accelerate site completion. We are confident in TraceAir both as the solution we use and as our long-term strategic investment, as their platform is helping the industry's most burning needs."
Watch the Video
ForConstructionPros.com sat down with Dmitry Korolev from TraceAir Technologies at CONEXPO in 2020 to talk about how the company's software captures data and guides contractors with what to do next on the job site. In the video, Korolev talks about how his company's technology has helped projects finish months faster than they traditionally would. The software is designed for people who are not tech savvy, so anyone can use it, he says. Watch the video:
TraceAir reported that with the prior seed investment, Round A brings the total capital raised by TraceAir to $7 million. The new investors joining the round are Liquid 2 Ventures, GEM Capital, GPS Ventures, and Andrew Filev (CEO Wrike). Existing investors, including Metropolis.VC, as well as Independent Construction and ENGEO, also supported the round.
TraceAir is growing in the land development and homebuilder market segment and is working with seven of the top 25 homebuilders in the U.S., according to a press release. The new capital will be used to grow marketing and sales, and to accelerate the development of new product features. One of the products in development and scheduled for release in the first quarter of 2021 is aimed to save 10% of grading costs by providing the optimal grading plan over traditional methods.
"We are happy to announce our Series A round in these turbulent times, thanks to support from our new and existing investors. The COVID-19 pandemic created new challenges for the U.S and worldwide construction industries, resulting in delayed projects and growing unemployment rates. Our platform allows users to manage projects more efficiently and collaborate remotely, minimizing the need for a physical presence on-site," says Dmitry Korolev, CEO at TraceAir.
TraceAir's platform allows users to quickly identify and solve problems, reducing delays, and accelerating decision making. Tools like Haul Road automatically find the most efficient route to move dirt and materials, saving in equipment and fuel expenses.
"XTX Ventures is proud to have led this growth round for TraceAir. This capital will allow the company to continue to expand their leadership in the space while enabling their customers to safely and cost-effectively execute their development projects," says Ekaterina Holt, head of XTX Ventures.