DigiBuild secures $4M seed round for blockchain-based construction management platform
By Riley Kaminer
Despite an increase in construction costs and a general increase in market volatility, the South Florida construction industry is still booming. Overall, the industry accounts for somewhere between 6 and 10% of global GDP. But it’s woefully behind from a technical perspective – part of the reason why as many as 70% of projects are finished late and over budget.
Miami-based DigiBuild is building a blockchain-based platform to digitize construction processes and create efficiency at scale. The startup just announced that it has raised a $4 million seed round to lead the platform’s growth. Investors include Y Combinator, Draper Associates, Harvard University, Picus Capital, the co-founders of PlanGrid, Bluefield Capital, Cathexis Ventures, MH Carnegie, Build Technologies, OrangeDAO and Chain Reaction.
In another email Update Miami, co-founder and CEO Robert Salvador said these funds will be used to expand DigiBuild’s product and technical capabilities. “We are becoming the trusted supply chain and materials management software for construction, so we will continue to improve our product to solve more customer pain, expand our sales/marketing efforts, and look to expand our contractor customer base.”
Salvador co-founded DigiBuild with Chief Customer Officer April Moss, a marketing and retail strategy veteran, and VP of Engineering Ivan Franco, a blockchain expert, in 2018. DigiBuild participated in the summer 2021 cohort of Y Combinator.
The startup’s main product, DigiProcure, is a materials management and procurement tool that automates administrative processes for contractors. DigiBuild’s platform enables users to search, filter and compare different aspects of a project’s timeline. The idea is that this advanced data insight will help reduce waste and fraud.
The blockchain aspect of the platform makes it easier for businesses to collaborate. Salvador, who comes from a family of entrepreneurs and has worked as one himself, noted that the typical project creates 750,000 documents. “Every different business party has a different version of the same paperwork,” he said. Moving all of this to the blockchain will create a single source of truth – streamlining and digitizing this mountain of paperwork.
DigiBuild currently has nine full-time employees. This funding will enable the startup to hire a business development manager to help the company work with more construction companies and industry partners. While DigiBuild is an external first company, Salvador signaled that the startup is hoping to find a Miami-based candidate since its headquarters are here.
Salvador moved to Miami a year ago and hasn’t looked back. “We were attracted to the growing tech scene, strong and business-friendly economy, great weather, and we were tired of states like Illinois that limited business, freedom and opportunity,” he said. “We wanted to be part of the next US tech hub, and that’s Miami. It’s been worth it and we’d do it again in a heartbeat.”
Miami is increasingly becoming a hub for Y Combinator-backed startups, including Papa, Career Karma, QuickNode, Finnt and Pigeon Loans. Construction is also a key focus of the Miami tech scene, with innovators working to improve planning processes, develop digital IDs, provide funding for construction professionals and more.
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