Procore Technologies Inc. — a Santa Barbara, California-based company that recently landed on Forbes’ 2016 billion-dollar startup list — is amplifying its Austin profile.
The cloud-based construction management software company recently moved into about 18,000 square feet on the 18th floor of Chase Tower at 221 W. Sixth St. after spending three years in co-working spaces, most recently at WeWork.
“Procore is becoming really valuable to large companies, but we can really provide a leg up for smaller contractors,” said Doug Madey, Procore’s director of communication.
Austin’s deep pool of tech talent prompted Procore to open an Austin operation in June 2013 with one person — Jeff Kemper — and now the local operation is up to 50 employees. The new space can accommodate 50 more, Madey said.
The rapidly growing company also recently secured $50 million in funding, lifting its total capital investment to about $179 million. San Francisco-based Iconiq Capital led the most recent fundraising effort. Procore expects to deploy its latest capital round to deliver more programs and expand internationally.
CEO Tooey Courtemanche founded the company in 2003 in Silicon Valley after learning the ins and outs of the software business.
His entry into the construction field began while building a new home for his family. He was stunned by the lack of coordination among the people he had hired. Just a decade ago, the construction business was decidedly low tech. Many companies simply didn’t know how to use technology effectively.
Courtemanche started with a web-based collaboration tool, and he acknowledged in comments on the company’s website that it was slow-go for years. Other software developers also tried to infiltrate the construction industry, but the 2008 economic upheaval put the nail in the coffin of many of those businesses.
Procore survived and thrived with patience and perseverance. The company touts itself on its site as “The #1 most widely used construction management software.”
Many of the giant construction companies still operate their own technology systems, but Madey said they are expensive to maintain.
Procore, he said, manages the entire process, ensuring that the smallest details are covered. Delivering the right materials at the exact time, for instance, can equate to thousands of dollars in cost efficiencies.
“Everybody is recognizing the benefit of cloud technology,” Madey said.
Cresa Partners represented Procore in its search for office space. Sixthriver Architects created the design, and The Burt Group handled construction.