Rabbet, a construction finance technology startup based in Austin, Texas, just raised $8 million in its Series A funding round, but that’s not the big story. The big story is one of the companies that participated in the funding round.
Included among Rabbet’s new backers is Goldman Sachs, the Wall Street giant.
According to Rabbet, which was founded in 2017 and changed its name from Contract Simply as part of the capital raise, Goldman Sachs’ Principal Strategic Investments group, QED Investors, and Camber Creek all took part in its Series A.
The company said that it will use the new funding to invest in the development of its platform, which uses machine learning to make the construction process simpler by reducing “administrative burden,” ensuring “instant compliance and faster decision-making” for real estate lenders and developers.
Rabbet said that it will plans to expand it service offerings and build new partnerships with construction lenders, developers and other industry stakeholders.
The funding will also support the company’s efforts to expand its software engineering and sales teams in Austin.
“With the support of Goldman Sachs, QED and Camber Creek, Rabbet will further its mission to bring frictionless transactions to the construction industry,” said Will Mitchell, Rabbet CEO and co-founder.
“Our name represents our commitment to strengthening connections in the real estate industry and fueling today’s connected construction economy,” Mitchell added. “Through intelligent automation, our platform provides operational efficiency, improved customer experience and faster payments, representing a $21 billion opportunity for lenders and borrowers.”
David Bell, managing director of Goldman Sachs’ Construction group, said that investing in Rabbet is a smart decision because of the company’s ability to simplify an otherwise cumbersome process.
“We firmly believe construction finance is going to be automated and brought out of its decades-old, paper-ridden process,” Bell said. “Rabbet is the only solution we've seen that can handle the complexity of this transition. We are committed to being on the forefront of technology, and working with Rabbet ensures we stay on the leading edge.”