A funding investment for a Missouri-based construction fleet and digital solutions startup is expected to help launch a new core tech solution for the industry and expand its national footprint, the company’s co-founder said as EquipmentShare nears 3,000 employees.
The startup recently announced a $230 million investment round led by Tiger Global Management, The Spruce House Partnership and RedBird Capital Partners, with additional participation from Tru Arrow Partners and existing investors Romulus, Insight Partners and Anchorage Capital Group.
“We are grateful to our new and existing investors for joining us on this journey to build connectivity for the construction industry,” says Willy Schlacks, president and co-founder of EquipmentShare. “We are eager to leverage this milestone round to launch several initiatives, with the continued goal of empowering contractors and accelerating productivity in construction.”
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EquipmentShare operates an office in Kansas City’s Crossroads Arts District, with a 30-person team that primarily consists of product developers dedicated to supporting the company’s overall technology solutions. Its total Kansas City workforce is about 130 employees, which also includes workers at EquipmentShare’s two area equipment centers.
Lead investor Tiger Global previously has invested in Leawood-based C2FO, as well as SafetyCulture, an Australian startup with its U.S. headquarters in Kansas City. Insight Partners notably has invested in Kansas City govtech startup PayIt and SafetyCulture, as well as a $290 million round in May for Manhattan-based CivicPlus.
The newly announced EquipmentShare investments provide capital to launch the company’s core technology solution, T3, the operating system for construction, and expand its suite of technology solutions. It also allows EquipmentShare to increase its national footprint to better serve the needs of its customers, the startup said in the announcement.
EquipmentShare plans to grow its total presence to more than 100 locations in the U.S. in 2021. Those additional rental, retail and service locations will allow the company to connect with new customers and better serve larger companies nationwide, Schlacks said.
As part of its expansion plans, EquipmentShare expects to hire in each new market it enters. The company currently hires an average of 100 employees each month.
The company was founded by brothers Willy and Jabbok Schlacks, along with co-founders Brad Siegler, Jeff Lowe, and Matthew McDonald, in 2014 after starting as an idea at Startup Weekend in Columbia, Mo.
Since its incorporation in 2015, EquipmentShare has experienced rapid growth, spurred by the demand for its award-winning fleet management technology and equipment solutions, the company said.
In 2020, Glassdoor named EquipmentShare one of the top growing companies in the country, despite the Covid-19 pandemic. Additionally, Forbes named the company on its list of America’s Best Startup Employers based on employee satisfaction, employer reputation and growth for the second consecutive year.