Construction finance can be downright byzantine. By bringing clarity to the process via machine learning, fintech startup Rabbet just closed an $8 million Series A round with investors including Goldman Sachs’ Principal Strategic Investments group, QED Investors and Camber Creek, as stated in a press release.
“With the support of Goldman Sachs, QED and Camber Creek, Rabbet will further its mission to bring frictionless transactions to the construction industry,” said Will Mitchell, Rabbet CEO and co-founder. “Our name represents our commitment to strengthening connections in the real estate industry and fueling today’s connected construction economy. Through intelligent automation, our platform provides operational efficiency, improved customer experience and faster payments, representing a $21 billion opportunity for lenders and borrowers.”
"We firmly believe construction finance is going to be automated and brought out of its decades-old, paper-ridden process."
In addition to building out its engineering and sales teams in Austin, Rabbet intends to use funding to invest in the platform’s technology, expand service offerings and partner with industry stakeholders such as construction lenders and developers. To date, Y Combinator alum Rabbet has optimized projects up to $150 million in size across the country.
"We firmly believe construction finance is going to be automated and brought out of its decades-old, paper-ridden process. Rabbet is the only solution we've seen that can handle the complexity of this transition. We are committed to being on the forefront of technology, and working with Rabbet ensures we stay on the leading edge,” said David Bell, Managing Director of Goldman Sachs’ Construction group.