The construction industry is an enormous segment of the global economy, representing 13% of world output and $10 trillion dollars of annual spend. The US alone accounts for over $1 trillion in annual spend. Despite its size, the industry is still living in the technological Dark Ages. McKinsey recently ranked construction 21st out of 22 sectors in terms of innovation — behind industries like mining, government and health care. These factors have created a massive opportunity for a vertical-specific software company to shepherd in a new area of digitization into the market.
This is how we found ourselves in Nashville, Tennessee meeting with Chase Gilbert, the CEO of Built almost 9 months ago. Our hunt for a team of industry practitioners with deep domain expertise in construction pushed us to look beyond the traditional tech hotbed of Silicon Valley and towards a construction boom town full of cranes and country music. As former real estate developers, the team at Built founded the company out of their of first-hand frustration within the industry. They set out to digitize the shockingly outdated, pen and paper workflow for construction loan administration.
The software Built created is now transforming their industry. Lending is faster and safer on their platform, now that data is no longer siloed in emails and on Excel spreadsheets. The company’s massive success over the last 3 year is a testament to the strength of the product and the natural network effects within the business model: Built has processed over $6 billion in construction loans for more than 30 banking customers. Since the beginning of this year, Built has grown the number of loans on its platform by over 600%.
Today, we’re thrilled to welcome Built into the Index family, with our lead investment in the company’s $21 million Series A. The investment underscores our belief that great companies are emerging from all over the country as big, transitional industries come online. We’re excited to partner with Built to bring construction lending into the 21st century, and we look forward to supporting the team as they revolutionize this massive and underserved market.