Construction operations software startup StruxHub Inc. said today it has closed on a $4 million seed funding round led by Brick and Mortar Ventures.
Others, including FJ Labs, Holcim and a host of angel investors also participated in the raise.
StruxHub has created a seamless, all in one management platform that aims to streamline the day-to-day running of construction projects of any size. The software is designed to make it easier for general contractors to coordinate material deliveries, building inspections and construction schedules with their trade partners.
Its delivery management module can help coordinate logistics and workflows around deliveries, reducing onsite congestion and coordination times by over 50%, the startup claims, through more efficient scheduling. It also provides scheduling tools for field teams to communicate and track short-term construction deadlines, and can act as a hub for construction site-related announcements. In addition, it helps site managers to streamline work permit approvals.
According to StruxHub, its platform is suited to every kind of construction project, and has been used by contractors working on downtown highrises, office complexes, hospitals, airports and data centers.
Co-founder and Chief Executive Jeff Chen said that for all of the investments in construction technology over the years, site managers and their field teams still rely on a disjointed mix of whiteboards, spreadsheets and phone calls in order to coordinate their projects.
“When they do deploy tech solutions, field teams are often frustrated with tools that focus on documentation and data entry rather than directly helping teams do their core job – building,” he said. “StruxHub aims to rewrite this narrative.”
Chen said he built the StruxHub platform after spending more than a year visiting various construction sites, as part of a digital innovation program at his former employer, Holcim. As part of that work, he had to interact with hundreds of construction professionals, and it was that experience that led him to develop StruxHub, he said.
The startup eventually spun out of Holcim, and today counts seven of the top 20 general contractors in the U.S. as its customers. Its platform has had a notable impact, too. The results of one experimental field study showed that StruxHub was able to reduce delivery coordination times by 83% on a two-tower highrise construction project, versus a similarly sized control site.
Alice Leung, vice president of Brick and Mortar Ventures, said many construction software tools tend to have serious scalability challenges, but StruxHub doesn’t.
“The uniqueness of StruxHub is that they’ve brought together a leadership team that truly understands the collaboration frustrations from the field’s perspective,” she said. “They are building a comprehensive construction operations platform, designed to integrate all types of job site data through a geolocated mapping interface.”
Going forward, StruxHub said, it plans to expand its footprint in North America and enter into select international markets, while simultaneously exploring new use cases and project types.
Chief Product Officer Chris Schmidt said that in the longer term, the startup has much grander ambitions, and believes it can help to transform the construction industry. “We believe the combination of geolocated maps, configurable workflows, and a unified data model around workflows and resources will help connect the fragmented construction supply chain,” he said.
Images: StruxHub
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