By A payments and financing startup specializing in the construction industry closed $50 million in debt funding and $5 million in seed capital to assist small and medium-sized businesses (SMBs) in the sector pay for building materials.
BlueTape, headquartered in Silicon Valley and launched last year, was backed by Arcadia Funds for the debt financing and Chicago Ventures for the seed money. Other investors included construction industry executives, real estate developers, and Plug and Play Ventures, according to a press release on Friday (Aug. 19).
The fresh capital will be used by Blue Tape to build out its workforce increase lending, and develop new products to “help construction businesses address the nation’s housing and infrastructure crisis.”
See also: BlueTape Launches Pay-Over-Time Virtual Card for Contractors
The company launched the BlueTape Virtual Card in May to enable U.S. contractors to finance their building supply invoices at any materials store, PYMNTS reported.
BlueTape offers a mix of financing options with integrated accounts receivable and invoice management tools. The startup also has partnerships with construction industry dealers and suppliers that offer BlueTape credit instantly to their trade customers, according to the release.
“With the current economic uncertainty, BlueTape is needed more than ever to help construction businesses of all sizes operate successfully and thrive,” said Andrew Hallowell, managing director and CEO at Arcadia Funds.
Co-founded by CEO Yaser Masoudnia and Chief Operating Officer Patrick Gannon, BlueTape was launched to provide SMBs with an affordable, flexible solution to the unsolved payment management and financial issues within the construction industry, according to its website. All loans on the BlueTape platform are originated by CBW Bank.
Read more: FinTech Mobilizes To Repair Construction’s Biggest B2B Payment Pains
“We have had enormous demand from construction businesses for our services since we launched. Inflation and supply chain interruptions mean builders and contractors need more working capital,” said Masoudnia.
“With the funding from Arcadia and Chicago Ventures, we will be able to help more construction companies get the financing and payments services they need to navigate economic uncertainty and supply chain issues,” he added.
Jackie DiMonte, a partner at Chicago Ventures, said, “Given the team’s background, we strongly believe BlueTape is the right company to tackle one of the fundamental obstacles for any construction business. They are paving the way for small businesses in the industry to have access to working capital and benefit from adopting new technology.”
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