Carlsbad-based construction tech startup Raken has raised a $10 million in a Series A financing round led by U.S. Venture Partners (USVP).
USVP, a venture capital firm based in Silicon Valley, has invested $3.7 billion in more than 400 companies since its founding more than 30 years ago.
The Raken software platform, which launched in 2014 and is today used by more than 3,000 customers in 89 countries, digitizes construction workflow processes including daily reporting, time tracking and safety management. Its mobile app links on-site workers with back offices in real time.
Raken has helped construction companies on nearly 20,000 projects, Kyle Slager, Raken’s CEO and founder, said in a news release June 4.
Sergey Sundukovskiy, Raken cofounder, chief technology officer and chief product officer, said the company’s extensive products feature testing and “micro-pivoting” has been key to its ability to retain customers.
The $10 million investment will fund “aggressive” expansion of Raken’s existing product line and the development of additional workflows for use at construction sites, Sundukovskiy said.
“Raken is well positioned to take advantage of the $7 billion and ever-growing software construction market,” said Dafina Toncheva, partner at USVP.
Raken said new investor Tao Capital Partners, a San Francisco-based family office, also participated in the round, along with existing investors Eniac Ventures, Rincon Venture Partners and Spider Capital.
Eniac, with offices in San Francisco and New York, closed a $100 million venture fund, its fourth since launching in 2009, in 2017.
Rincon recently merged with Double M Partners to form Bonfire Ventures, a Los Angeles-based B2B software-focused firm that launched in January with a $60 million fund.
Spider, in San Francisco, makes seed-stage investments in enterprise cloud software companies.
Raken raised its first round of financing, $2 million in seed funding, in early 2017. It employs more than 50 people.
Reach reporter Sarah de Crescenzo at sarahd@sdbj.com.
