During his nearly 15-year career at Northwestern Mutual that culminated in his role as chief information officer and head of digital innovation, Karl Gouverneur routinely encountered early-stage startups that intrigued him.
After leaving Milwaukee-based Northwestern Mutual in 2020, Gouverneur began advising several startups including Struxtion LLC, a Cincinnati financial technology company that provides working capital for commercial construction contractors. Struxtion recently announced it's backed by $5.5 million from North American Properties Inc., a major real estate development company in the Cincinnati area.
Gouverneur joined Struxtion full time as its chief technology officer in late 2020. He's excited about the unique opportunity to work with a seasoned team and an investor that's already embedded in the construction industry, and to be solving a problem that has a massive market size, he said.
The company was founded in 2020 by Gregg Lund, who said he has worked on real estate financing deals totaling around $500 million across his 20-year career.
Struxtion's platform provides financing for subcontractors like electricians, framers and plumbers, allowing them to access funds at cheaper rates than credit cards or factoring services typically offer, according to the company.
"This is who builds America, and Struxtion is looking to help them so that we can help this engine that's building the construction masterpieces that you see come out of the ground," Gouverneur said. "You don't understand how difficult it is to lay out two miles of cable in a building and then not get paid for three (or) four months."
Instead of using traditional underwriting standards, Struxtion's algorithm sets lending rates based on information subcontractors provide about their company and their projects. Struxtion has several initial customers and has made more than $1 million in advances to date, the company said.
Gouverneur also referred Steve Glynn, host of the Experience Milwaukee podcast and founder of the former digital strategy firm Spreenkler, to join as Struxtion's chief marketing officer. Glynn started in September. Both Gouverneur and Glynn still live in the Milwaukee area.
While he said Struxtion is his main priority, Gouverneur also advises several other startups, including Cincinnati residential real estate company Homeshake, which was founded by a former North American Properties executive. He sits on the advisory board of Milwaukee supply chain startup PAXAFE Inc., as well as several New York City and California-based startups.
A key leader in the MKE Tech Hub Coalition's founding in 2019, Gouverneur said he remains engaged in the local technology ecosystem. He also has gotten involved in Cincinnati's tech scene and observed similar challenges that Milwaukee faces in building its technology sector.
"The common thread that I see between them is 'We don't think we can compete,'" Gouverneur said. "The answer is ... there's plenty of bread to spread around and there's plenty to happen here. ... For us as an employer in Cincinnati, we look to contribute to both ecosystems, not just Cincinnati but also Milwaukee."
