Fifth Wall Leads $20 Million Series B Round for Assignar
Cloud-Based Construction Operations Platform, Assignar, Pioneers Support for Construction Subcontractors
Fifth Wall is proud to announce that it led a $20 million Series B financing round for Denver-based Assignar, an all-in-one software platform and mobile app that assists construction subcontractors in scheduling the crews, materials, and equipment to get jobs done efficiently. It comes at an opportune time, as the U.S. Congress considers a $2.3 trillion infrastructure bill.
While most construction software tends to focus on vertical construction (in private-sector industries such as commercial real estate, office, hospitality, and multifamily housing), Assignar works primarily with the heavy civil sector on horizontal construction. This means supporting detailed and lengthy infrastructure and transportation projects, spanning the asphalt, concrete, crane and rigging, demolition, electrical, electric power, excavation, oil and gas, rail, solar, and traffic management industries.
With Assignar, subcontractors are able to monitor progress on all of their projects, ensure quality, and manage the compliance and safety requirements of a site. While other software solutions might provide tracking for one of these elements, Assignar tracks all elements of a project in a granular level of detail. In addition, the platform provides transparency and an open line of communication between any headquarter office and crews in the field.
Discovering a white space
Co-Founder and CEO Sean McCreanor launched Assignar in Australia in 2014. For years prior, he owned and ran a construction business in the Australian rail industry, managing day-to-day operations, workers, equipment, and materials. During this time, he found himself in need of a comprehensive software tool to track responsibilities, but was frustrated with existing options which were antiquated and lacking in functionality. With a background in tech, he set out to devise a solution, forming a team of Australian developers, and partnering with Marko Tomic (now Co-Founder & CTO) to architect a platform. In 2018, Assignar opened an office in the U.S. and in 2019 the team brought the product to market.
Assignar landed on my radar as I was looking to source platform technology solutions in the construction sector. My research revealed a gap in technology solutions for the heavy civil and horizontal construction industry. Specifically, subcontractors in the space were extremely underserved and had been relegated to using solutions designed with larger general contractors in mind. There were no well-designed products ubiquitous to subcontractors.
Assignar’s name surfaced, so I reached out to Sean McCreanor in early 2020. While the plan was to pay him a visit in Denver, Colorado, the global pandemic erupted and we continued a virtual dialog from March 2020 onward.
Sold on Assignar
A combination of factors convinced our team that Assignar offered a compelling solution. First and foremost, the market for Assignar was a white space in contrast to many overcrowded areas within construction technology. In the general contractor category, for example, 10–20 software companies often compete in the bidding process, which makes it difficult for any one disruptor to emerge.
In contrast, in the subcontractor space, Assignar currently faces only two incumbents, both of which are legacy players with tech debt and a much slower pace of innovation. It has developed a compelling user experience that sets it apart from other offerings.
Finally, Sean’s background and first-hand sector expertise was another significant factor in our investment decision, as it was evident he deeply understands and empathizes with the challenges facing both construction offices and field workers.
Expansion in all directions
While the global pandemic presented obstacles for every business, Assignar is transitioning back into a state of accelerating growth and both rapidly expanding its footprint in North America and planning to build a presence in Europe before the end of 2021. In addition, it has set its sights on the Australian oil, gas, and mining industries.
Assignar’s current average client is a small-to-medium business (SMB) with 50–200 employees, paying an annual subscription fee. They like Assignar for the reduced amount of back-and-forth between headquarters and the field, reduction in paperwork, and ultimately the time and money it saves in an industry where much of the planning, tracking, and reporting are still done by hand, in Excel, or on white boards. One client, who formerly required field workers to drive eight hours back to the office to submit paperwork, has since digitized the entire process. Others report placing employees in higher-value roles, while Assignar automates tasks previously done manually.
Beyond pulling SMBs into the digital age, Assignar is also moving upmarket as it gains brand recognition. General contractors have quickly recognized that Assignar’s platform offers the most detailed view on when and where certain types of activities are performed. We see a meaningful opportunity for Assignar in the medium- to long-term to integrate with large general contractors, developers, and real estate owner-operators who seek the best real-time snapshot of granular field-level activity.
Evolving and staying ahead of market trends
Beyond the tracking and reporting of people, equipment, and materials, Assignar offers its clients support for safety compliance initiatives. As Ernst & Young reports, “The compliance, productivity and operational issues in managing environment, health and safety (EHS) risks have become broader and more complex. It is now recognized that managing EHS risks can have a positive impact on workplace productivity and financial performance.” In the same vein, Fifth Wall has found that an increasing number of government construction contracts require at least some safety and compliance be performed digitally alongside more rigorous documentation. We believe it likely that such requirements will become table stakes in the future and that Assignar is best positioned to support those requirements with a platform that connects all data and gives teams instant access to the status of every worker or equipment qualification, certification, compliance, and availability. Through Assignar, contractors can collect safety forms and manage orientations before the start of every project. The reality is that we’re already seeing companies who don’t use software like Assignar lose contracts or simply be deemed ineligible to bid for them altogether.
While safety is a broad, advancing trend, an even more immediate and historic moment is underway in the U.S., which will provide Assignar significant opportunity for growth. As of this writing, a $2.3 trillion infrastructure bill is making its way through the U.S. Congress. If signed into law, it would mean significant updates to national infrastructure, including housing, transportation, water, internet, power, and schools. A surge in demand appears imminent, and Assignar is at the ready with the tools to improve cost and operational efficiencies, a commitment to safety and compliance, and an ongoing drive to enhance the user experience. We are eager for Assignar’s future, excited by its momentum, and proud to have led its recent $20 million Series B round of financing.
Forward-looking statements and opinions as to real estate markets or any other matters, as expressed in this post, are those of the individual author(s), but are not necessarily the views of Fifth Wall as a firm, and cannot constitute a guarantee of future success or profitable results. As a result, investors should not rely on such forward-looking statements and/or opinions, or on anything else contained in this post, in making their investment decisions.
The information discussed above is presented solely for informational purposes and should not be interpreted as an offer or recommendation to buy or sell securities.
The portfolio companies described above may not be representative of all investments in funds managed by Fifth Wall, as the number and composition of investments will vary over time. There can be no assurance that any investment will be profitable or that future investments will have similar characteristics or results. Certain portfolio companies may be excluded from this list if the company requests that it not be publicized or included on this website. The inclusion of a portfolio company in the above list should not be considered a recommendation or endorsement of Fifth Wall by that company.
