Fintech
Real estate financial technology firm Adaptive closes $19 million Series A
Matt Calvano
Based in New York Adaptable has closed a $19 million Series A financing San Francisco-based led round Emergency capitalas it aims to transform payment systems in the construction sector.
Definition, Exponent, 3kvc, Box Group — all of New York — and the West Coast Andreessen Horowitz and angel investor Gokul Rajaram participated. So far, Adaptive has raised $26.4 million from investors.
Holistic platform
Founded in 2023, Adaptive uses advanced technologies, including artificial intelligence, to automate financial management in an effort to address an estimated $273 billion in losses annually caused by legacy processing systems. Its platform offers end-to-end financial management, including budgeting, cash flow analysis, expense tracking, accounts payable, accounts receivable, vendor management, and electronic payments.
“The payment delays and cash flow issues we see in the construction industry largely stem from manual and outdated back-office processes,” said Adaptive co-founder and CEO Matt Calvanoformer Morgan Stanley investment banker. “Our platform uses AI and automation to cut through this back office fog, providing real-time clarity into financial data and significantly accelerating payments.”
In a LinkedIn post, Calvino said Adaptive was “on a mission to make construction financing fast, accurate, and simple.” It shouldn’t be this difficult and expensive to know in real time how your projects are doing, close your books, or get paid, he added.
Significant savings
According to the company, more than 280 construction firms use Adaptive’s platform to manage more than $1.4 billion in project volume. Its clients span small- to mid-sized construction businesses, including custom home builders, commercial general contractors, real estate developers, and skilled trades.
One customer, Boston-based NS Builders, said Adaptive’s platform helped its company recover $100,000 in reimbursable expenses lost annually due to “error-prone” cost tracking. Every builder faces the same problem, which leads to higher prices overall, he added. Another customer, Risinger Build, said Adaptive “has completely streamlined our back-office process.”
Adaptive has partnered with vertical software companies like Veeva and payments innovators like Bill.com. It plans to make further improvements to its platform, particularly to build an integrated financial ecosystem that connects developers, general contractors, and subcontractors.