The construction industry is massive in just about every way. So building software that improves efficiency in the industry, which has a reputation for being behind the times with technology, can be lucrative business.
One of the companies operating in this space is Austin-based Rabbet. The startup's automation platform uses machine learning to simplify document sharing and administrative duties tied to financing big construction projects. The software pulls key data from complex documents and contextualizes it -- essentially, a new spin on tasks traditionally handled through PDFs, email and paper documents.
Now the startup is poised for a new stage of growth, fueled by $8 million in new funding. The investment round was led by Virginia-based venture capital firm QED Investors. Goldman Sachs' Principal Strategic Investments group and Washington, D.C.-based Camber Creek also contributed to the round.
With the new funds, Rabbet plans to invest in its platform, expand offerings and add new software engineers and sales leaders to its team in Austin.
“Our name represents our commitment to strengthening connections in the real estate industry and fueling today’s connected construction economy," Rabbet CEO and co-founder Will Mitchell said in the release. "Through intelligent automation, our platform provides operational efficiency, improved customer experience and faster payments, representing a $21 billion opportunity for lenders and borrowers.”
Landing investment from Goldman Sachs will boost Rabbet's profile, but the banking giant isn't the first to take note of Rabbet, which was previously known as Contract Simply. The company, founded in 2017, was part of the Y Combinator accelerator. Its seed round was led by Tectonic Capital.
Rabbet was co-founded by Mitchell, who previously co-founded Renovate Simply, and Andrew Latimer, a full stack engineer who has worked with OwnLocal, DailyBooth and Dasheroo.
In a blog post, Rabbet said it started 2018 with five employees in a coworking space in North Austin. It has been growing ever since, adding a new office and reaching a total of 14 employees by the end of 2018. They currently have 12 Austin-based jobs posted.
Editor's note: This story originally said Goldman Sachs was the lead investor. It has been updated to show QED led the round.
