By Nathan | Posted on June 13th, 2018
We are proud to announce that Raken has raised $10 million in Series A funding in a round led by prominent venture capital firm U.S. Venture Partners (USVP), with participation from new investor Tao Capital Partners, and existing investors Eniac Ventures, Rincon Venture Partners and Spider Capital. We couldn't be more excited about the venture capital groups that saw the value we bring to the construction industry or what this successful round of funding means we can do.
“Our mission has always been to empower the construction field. We've helped construction companies on nearly 200,000 projects and the customer feedback has been incredible. Our partnership with USVP will allow us to accelerate product improvements, new features, and maintain world-class customer service." said Kyle Slager, CEO and founder of Raken.
This initial round of funding will allow us to expand into new workflows while perfecting our top-rated daily reporting, time tracking, and field management workflows for the construction industry. So far our solution has helped more than 3,000 clients from all 50 states and 89 countries, and this funding will help us reach even more.
“More companies in the construction industry are embracing new technologies, and Raken is at the forefront of that adoption when it comes to daily reporting, workforce time tracking, and other field management solutions,” said Dafina Toncheva, a partner at USVP. “Raken is well positioned to take advantage of the $7B and ever-growing software construction market. Raken is deftly meeting the growing demand for technology integration in the construction industry and we’re excited to participate in their increasing success.”
One of the factors that led to our initial success is our home base in San Diego, where we have access to a diverse, growing pool of technology talent and a healthy rich ecosystem for small business, with more than 25 business incubators and accelerators. According to CNBC’s Power City Index, San Diego County beats out Silicon Valley for best return on investment in local public companies by 1.2 percent.
The $10 million in Series A funding will allow us to do more of what we're good at; streamlining construction workflows with the fastest, easiest to use app available. We pride ourselves on building solutions our customers love and have maintained a near 5-star rating in both iOS and Android App Stores since our initial launch in 2014. “At Raken, we do a significant amount of product feature testing and micro-pivoting to ensure we deliver true customer delight. We're only successful if our customers are successful," said Dr. Sergey Sundukovskiy, CTO/CPO and co-founder of Raken.
Our business strategy to date has been very intentional. "At Raken, we've always focused on capital efficiency and consistent product-driven customer growth," said Slager. "Our experiment-centric approach, business model, and a focused product offering has allowed Raken to develop at the accelerated pace without incurring disproportionate business risk. Our true differentiation comes from our fanatical attention to the needs of our clients and delivering a product that they absolutely love.” Sundukovskiy added, "The $10 million funding will be used to finance the aggressive expansion of the existing product line for our already expanding customer base while developing additional contraction field management workflows. Now more than ever, we will maintain our steadfast dedication to our existing customers with further investments in customer support many years into the future."
And of course, we couldn't have gotten this far without the support of our amazing customers. Your feedback and use cases provided the input we needed to make the app what it is, and we look forward to making it even better for you with our new resources.
U.S. Venture Partners (USVP) is a leading Silicon Valley venture capital firm, partnering with entrepreneurs to transform their ideas into world-changing companies. USVP has invested in over 400 companies spanning three decades, including Box, Castlight Health, Check Point Software, Concur, GoPro, Guidewire Software, HotelTonight, Imperva, InsideSales.com, Intersect ENT, Omada Health, OncoMed, SanDisk, Sun Microsystems, ThreatMetrix, Trunk Club, Trusteer, Yammer, and Zerto. USVP focuses on early-stage start-ups that transform cybersecurity, enterprise software, consumer mobile and e-commerce, and healthcare. The USVP team consists of former entrepreneurs, technologists, corporate executives, and financial professionals who assist with strategy, scaling, team building, product development, and business development. For more information, visit https://www.usvp.com/.
Tao Capital Partners (Tao) is a leading family office investment firm, with a long history in real estate development and construction. Tao has invested in Tesla (TSLA), SpaceX, Uber, Proterra, SolarCity (SCTY), DeepMind (GOOG), Foundations Recovery Network (UHS), DreamBox, Newsela, Granular (DWDP), Ripple, Apeel, Warby Parker, Harry’s, Buildium, Porch, and Revinate. Tao invests in technology, alternative energy and transportation, healthcare, education, sustainable food & agriculture, consumer, and real estate businesses that have a positive impact. Tao is an active investor with the ability to support companies through various stages of their life-cycle. For more information, visit www.taocap.com.new
We are extremely proud of the partners who have chosen to join us and the exciting things this round of funding will enable us to do. So keep your eye on Raken for more updates!