Last week, construction finance platform Rabbet announced raising a Series A funding round of $8 million led by Goldman Sachs, QED Investors, and Camber Creek. The Fintech company which was formerly known as Contract Simply – helps companies involved in construction finance to digitize and view documents relevant to a deal.
“Rabbet brings efficiency, accuracy and visibility to the complex construction finance industry.”
Rabbet’s groundbreaking software solves a huge point of pain for construction loan processing by helping to expedite construction draw processing, which saves time and money while minimizing human error in data processing. Currently, these processes are manual and paper-based, making it time-consuming and prone to errors.
This funding round comes as the construction markets are in a big slowdown, a trend which has caused a shift from new developments toward the operations and technology end of the business. Given this “throttling back” environment, many in the business of construction finance are searching for new ways to streamlining and making more efficient all their processes.
Rabbet provides just such a streamlining solution, at a time when Fintech investing is empowering entreprenuers to blaze new trails with AI, machine learning, and VR. RealtyBizNews asked Jake Fingert, General Partner at Camber Creek about the VC firms investment in Rabbet. Here’s what Fingert had to say:
“Given the recent deceleration of the construction market, many in the industry are shifting more of their focus from new development to operations and technology. Rabbet is the leading construction loan software solution, an area ripe for innovation and where many in the space, such as Goldman Sachs, are looking for more efficient ways of doing business. Rabbet’s technology significantly reduces the time it takes to process a loan, which means faster payments for subcontractors and more interest for banks, all while digitizing the workflow to improve compliance and record keeping. Instead of ten days, banks are pushing out draws in as little as two days.”
Rabbet’s platform helps banks, developers, and contractors to perform streamlining functions which are currently manual paper-based functions. The Austin based startup makes use of machine learning to located and extract key information from documents so that data and information can be migrated to PDF or spreadsheet form. At the end of the day, Rabbet technology creates a cross-sharing capability that is not currently available. Will Mitchell, Rabbet’s , CEO and co-founder, told interviewers last week:
“All this information is trapped in disconnected PDFs, spreadsheets, emails. We want to focus on the efficiency, accuracy and transparency that software can bring to this complex industry.”
Goldman Sachs’ construction finance division uses Rabbet’s software for streamlining and modernizing their construction investing operations, according to this Reuters release.
Babbet announced the company will use the new funding to continue to invest in the development of its automation platform, to expand service offerings, and to cultivate partnerships. The company also announced an expansion of its software engineering and sales teams in Austin.
Founded back in 2017, Babbet (Contract Simply) was accelerated with Y Combinator. Since that time the company has seen rapid growth, having improved efficiency for projects sized up to $150 million nationwide.