Startup Procore's valuation rises to $500M, approaching public rival Textura

Dive Brief:

The valuation of fast-growing construction industry cloud software startup Procore, after a recent $50 million investment, is almost on par with its publicly traded competitor, Textura, The Wall Street Journal reported.
Bessemer Venture Partners valued Procore at $500 million post-investment, and Textura has a market capitalization of approximately $589 million. Procore, according to The Journal, expects to generate more than $75 million in upfront, 12-month license payments in 2016, more than double the level in 2015.
The significant investment in Procore is indicative of the tendency of venture investors to offer valuations at higher revenue multiples than public-company investors, as they count on a rapid growth rate to increase the companies’ value, according to The Journal.

Dive Insight:

Procore founder and CEO Craig "Tooey" Courtemanche developed the company’s software as a way to communicate more easily with the contractor building his house almost 13 years ago. Procore’s tools include meeting minutes, markups of drawings and document storage. Procore said its approximately 1,600 clients use the company’s products when building high-rise residential properties, hospitals, industrial plants and a range of other types of projects.

Courtemanche told the Journal that Textura and Procore calculate their billings in a similar way. According to a JMP Securities November report, Textura expects billings of $124 million in 2016, up 27% from 2015.

Courtemanche also told The Journal the company stands out from competitors like PlanGrid, which recently raised $40 million, and Fieldwire by using a single platform and charging per project, rather than per user. Fieldwire, a San Francisco-based startup offering mobile and web platform services for construction projects, recently secured a $6.6 million investment.

2015 was a banner year for construction technology of all kinds, but apps on mobile devices attracted major interest from investors and users alike.

Caterpillar-backed Uptake Technologies was also a standout last year when it beat out companies like Uber and DoorDash to win the title of Forbes’ 2015 hottest startup. Uptake’s software streams sensor-based performance and maintenance data to users about the condition of equipment in order to better predict malfunctions and maintenance requirements.

Other up-and-coming construction apps include Bridgit’s construction "punch list" app, Closeout, and BuildingConnected’s bid management platform.