UPDATED, July 16, 1:50 p.m.: Construction management software company Procore has acquired Honest Buildings, a startup favored among institutional developers, the companies said Tuesday.
The acquisition signals confidence in the growing construction tech sector, where major real estate players are putting their capital. Last year, investment in construction tech companies totaled $6.1 billion, almost double what was invested in 2017 and a stark rise from the $350 million invested in 2016. Already, 2019 is on track for another year of record investment with over $4 billion so far.
Procore, which last year raised $75 million in a round led by Japanese conglomerate Tiger Global Management, sells an app used by developers to track a construction project’s progress.
In a statement, Procore’s chief executive and co-founder Tooey Courtemanche said Honest Buildings’ product — an online platform that uses data to allow developers to oversee projects — will be integrated into the Procore platform to provide transparency and accessibility of information to builders.
The firms would not disclose the acquisition price.
Courtemanche launched Procore in 2002 and has over 1,000 employees. It is now valued over $3 billion and has offices in multiple countries.
Honest Buildings, for its part, has drawn big checks from some of the real estate industry’s largest figures since it launched in 2012. The firm, led by Riggs Kubiak, has raised $47 million, in rounds that included the Durst Organization, Brookfield Asset Management and Oxford Properties. In turn, the firm counts those companies as customers.
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Correction: This story has been updated to reflect that it was Tiger Global Management which led the $75 million funding round, not SoftBank.