Orlando construction software firm RedTeam scores $28M in funding

An Orlando-based construction management software company landed nearly $30 million in what likely will be one of the year’s biggest Central Florida funding deals. 

RedTeam Software LLC has raised $28 million, according to a document filed with the U.S. Securities and Exchange Commission Feb. 2. The investment, metro Orlando’s biggest startup investment deal of 2022 so far, goes to a company that has spent the last two years growing quickly. 

Doubling in size  

RedTeam developed a construction management software that it boasts is used by more than 100,000 people in the industry. The software allows digital collaboration on construction plans, document management, billing and more. 

It’s unknown who invested in RedTeam. Company executives could not be reached for comment. 

However, this isn’t RedTeam’s first time successfully raising money. The 15-year-old firm in 2020 closed a $5 million investment round from New York-based venture capital firm JettyCove. That money’s purpose was to double the firm’s workforce to 70 people and expand into the subcontractor space, founder Michael Wright and Chief Revenue Officer Frederic Guitton previously told Orlando Business Journal. 

RedTeam was picking up clients before the Covid-19 pandemic, but the sudden switch to remote and hybrid work environments made RedTeam’s software more appealing, Wright previously said. That’s because remote work makes digital systems vital for communication between construction firm employees who are in the field and those who are not. 

A big year for VC

Of course, venture capital often is critical for startups and early-stage companies. It funds companies as they scale up while also providing business expertise and industry connections.

The last two years were relatively strong ones for Orlando companies raising venture capital. Metro Orlando firms in 2021 combined to raise $361.6 million from investors, according to PitchBook and the National Venture Capital Association. Although that was slightly less than the $378.4 million raised locally in 2020, last year still was the second-biggest year for metro Orlando venture capital investment since at least 2013.

To see metro Orlando's biggest VC deals of 2021, check out the slideshow above.

Still, it can be tough for businesses to find investment capital in Central Florida, and firms often turn to out-of-state investors to raise money. In fact, raising money is one of the biggest “pain points” for local early-stage businesses, said small business coach Kimberly Rosier Jean-Louis during Orlando Inno's Jan. 20 Startups to Watch panel. Jean-Louis is CEO and owner of Orlando-based small business development firm 3D Strategic Management Inc. “The biggest weakness is access to capital.”

Meanwhile, the U.S. enjoyed a record year for venture capital investment in 2021, with companies raising $329.9 billion. Investors in 2022 are expected to put their money into startup investing “at unprecedented rates,” PitchBook founder and CEO John Gabbert said in a Jan. 14. report. 

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