Bloomberg: Procore could be headed toward IPO with $4B valuation

Dive Brief:

Construction management software company Procore Technologies Inc., according to Bloomberg, is planning an initial public offering (IPO), led by Goldman Sachs and potentially valued at $4 billion or more, for the end of this year or the beginning of next year. Construction Dive reached out to Procore, but a spokesman said the company had no comment.
The report is based on unnamed sources who told Bloomberg that the IPO plan isn't finalized yet and that Procore is on track to bring in $400 million in revenue this year.
In the last five years, Procore has raised $200 million, including a $75 million round last December, and, as of July, has a valuation of $3 billion. Financial backers include hedge fund Tiger Global Management and Iconiq Capital.

Dive Insight:

The company is also on a mergers and acquisition track, with three major deals since September 2018: analytics company Construction BI, Honest Buildings and BIManywhere.

Rusty Reed, chief strategy officer at Procore, told Construction Dive in August that the company was looking for future partners that fit in with the company culture, offered "a clear path" toward integration with the Procore platform and were capable of delivering value to customers on day one.

"We’re looking for technology and people that align with our vision, which is to improve the lives of everyone in construction and be able to deliver that value to customers quickly," he said.

Procore has expanded from its initial offering of construction management software to a wide variety of products, which include building information modeling (BIM) and preconstruction solutions.

Last month, the company introduced Procore BIM, which works with the company's 2D Drawings tool and incorporates Apple's Metal graphics framework. The new app, which will allow iPhone and iPad users to access information while in the field, also gives the user a virtual view of the work in place. The company said Procore BIM also will be able to handle large 3D models and 2D drawings from Autodesk's widely used 3D review and BIM coordination solution, Navisworks.

Earlier this month, Procore introduced two new products for the preconstruction space: Procore Bid Management and Procore Prequalification. While Procore Prequalification is just about to enter beta testing, Procore Bid Management, according to the company, already has thousands of users who, using the software, can create bid packages, send bid invitations to subcontractors or other lower-tier contractors, communicate with bidders and collect bid sheets.

David Malenoir-Evans, Procore's vice president of product management, financials and preconstruction told Construction Dive that one of the primary reasons the company decided to develop a tool like Procore Bid Management was to streamline the largely manual, paper-driven bid process that many contractors currently use.

Tim Miller, director of preconstruction services at Barnhill Contracting Co., located outside of Raleigh, North Carolina, said Procore Bid Management so far has saved the company a great deal of time, freeing up employees to focus on the customer and more productive tasks.

Malenoir-Evans also said that adding solutions in the preconstruction phase helps give a project team "a single source of truth" rather than silos of important information.

There were similar IPO rumblings about modular builder Katerra earlier this year, but, so far, the company is still privately held.