Built, a provider of construction lending automation software and a 2017 HW Tech100 honoree as one of the top technology companies in the housing industry, announced this week that it raised $21 million that it plans to use to “transform” the construction lending industry.
According to details provided by Built, the company completed its Series A round of funding, which saw the company raise $21 million. The funding was led by venture capital firm Index Ventures, with participation from New York-based Nyca Partners, a fintech-focused VC firm.
The investment brings Built’s total capital raised to $25 million.
Built was found in 2014, and the company has seen significant business growth in the last two years.
“Since January 2016, the company has more than tripled its customer base, which includes banks and other non-bank lenders of all sizes across the United States,” the company said in a release. “In the 30 months since going live, lenders have used Built’s platform to manage more than $6.5 billion of construction loan volume.”
According to the company, its software “streamlines” the collateral monitoring and draw process, making it easier to service construction loans. The company claims that by digitizing a previously analog process, lenders can make “more informed” decisions on loans, while simultaneously providing borrowers with a “convenient, digital experience with faster access to money.”
And the company plans to use this new injection of funding to grow its operations.
Specifically, Built said that it plans to “accelerate innovation” in both residential and commercial construction lending, and also plans to invest heavily in data utilization.
“Built is poised to completely transform construction lending,” said Mark Goldberg, investor at Index Ventures. “This is a massive industry that has been bogged down by cumbersome, pen and-paper-based processes. With their software platform, Built is making construction lending faster and safer. We’re excited to partner with them to bring construction lending into the 21st century.”
The company said that the capital infusion will also allow for “continued investment in integrations and partnerships with other lending technology systems and leading industry service providers.”
Along those lines, earlier this year, Built announced an integration with Ellie Mae’s Encompass all-in-one mortgage management solution, which will allow Encompass users to manage construction loans from pre-closing through post-closing.
And now the company plans to continue expanding.
“Built was born out of our own first-hand frustration of managing construction loans and a complete belief that it could be done better with technology,” Chase Gilbert, CEO and cofounder at Built, said.
“This investment is very exciting because of what it means to our clients, the entire construction lending industry, and all the affected stakeholders,” Gilbert continued. “This is an area of lending that has been underserved for far too long and we know we can change the way the world gets built by making it easier for capital to get safely deployed.”
(h/t Rob Chrisman)