In Texas, oil work is often regarded as a risky business largely reserved for an old-school group of well-connected oilmen. But it's also a sector with a ton of room for innovation.
That's where RigUp comes in. The Austin startup has created a marketplace for on-demand services and labor in the oil and gas sector. And it has been growing rapidly in recent years.
Now the company is poised for its next stage of growth. RigUp reported raising a $15.8 million Series B round on Monday afternoon. The deal includes follow-on investment from Founders Fund and other investors. They'll use the new money to improve its mobile features and payment solutions -- as well as hire for their product and sales teams.
As part of the deal, Napoleon Ta of Founders Fund and Jeffrey Harris, a venture partner at Quantum Energy Partners, will join RigUp's board.
“RigUp has identified an extremely attractive segment of the oilfield service market providing energy companies and their independent contractors a modern platform for coordinating their needs,” Harris said in a news release. “The power of RigUp’s technology and their creative business model stands out in the current environment where E&P companies are showing increased enthusiasm and adoption of digital solutions."
RigUp, founded in 2014, also announced it has secured a $30 million line of credit with Silicon Valley Bank to help back up its revenue streams.
“Everything we’re doing is to help our service providers get more work and make more money,” CEO and co-founder Xuan Yong said in a news release. “Our service model continues to grow nicely every month."
