Investment banking giant Goldman Sachs has backed the US construction finance platform, Rabbet. The startup, which engages in software development aimed to make construction finance more efficient, announced on Wednesday that it had closed an $8 million Series around backed by Goldman Sachs, along with QED Investors and Camber Creek.
Formerly known as Contract Simply, Rabbet stated that it would be using these funds to develop its platform further, and grow its software engineering and sales team. The company ensures efficiency, accuracy, and visibility to the complex construction finance industry. Rabbet’s platform applies machine learning to systematically analyze documents and connect information to ease administrative burden, instant compliance and faster decision making for real estate players.
The Texas-based company said that the platform enables lenders and developers together better insight from the information they have and transact faster than by emailing each other’s spreadsheets and PDF. Rabbets CEO and co-founder, Will Mitchell said in an interview that all the information is trapped in disconnected pdf, spreadsheets, and emails. He added that the platform wants to focus on efficiency, accuracy, and transparency that the software can bring to this complex industry. He also said that Goldman’s construction finance arm was already using Rabbets software.
Mitchell also claimed that the startup’s name represents its commitment to strengthening connections in the real estate companies and fueling the present connected construction economy. Through intelligent automation the platform provides operational efficiency enhanced customer experience and quicker payments, representing a $21 billion opportunity for lenders and borrowers, Mitchell said.
Goldman’s investment comes at a time when banks and other large financial institutions are increasingly turning their focus to fintech startups for technology that can help them streamline some of their processes. David Bell, managing director of Goldman Sach’s construction division, has stated that his organization firmly believe that construction finance is going to be automated and will get rid of its early while paper document process. He added that Rabbet is the only solution that the group sees which can handle complexities of this kind of transactions.
Other investors in the current round of funding are QED investors, a leading boutique venture capital firm and Chamber Creek a venture capital firm predominantly investing is technology related to the real estate industry. QED, based out of Alexanderia, is mainly focused on investing in early stages, disruptive financial services companies in the United States the United Kingdom and Latin America. On the other hand Chamber Creek partners with real estate owners, operators, and decision-makers, with a mission to connect this player with company’s that are introducing innovative technologies to transform the real estate scenario in the country.
A Rabbet was founded in 2017 and accelerated with Y Combinator. The company has witnessed rapid growth since its initial of investments in October 2017 led by Tectonic Capital. Till that, Rabbet has enhanced efficiency for projects sizing up to $150 million, across the country.
Technology start-ups like Rabbet are fast gaining popularity across the globe, transforming sectors with platforms based on artificial intelligence, machine learning, and digitalization.