Construction startup Procore files initial IPO paperwork

The company could reportedly be worth more than $4B

National /
Mar.March 02, 2020 04:50 PM
Procore CEO Craig “Tooey” Courtemanche Jr. (Credit: Boardroom Insiders, iStock)

Procore CEO Craig “Tooey” Courtemanche Jr. (Credit: Boardroom Insiders, iStock)

Construction tech startup Procore plans to go public, a move that could reportedly push the company’s value north of $4 billion.

Procore, a construction management software company based in Carpinteria, California, filed an S-1 with the U.S. Securities and Exchange Commission late Friday. The filing lists $100 million as the value of the initial public offering, though this sum is a placeholder. Bloomberg Law was the first to report the filing.

Back in September, Bloomberg News reported that Procore had tapped Goldman Sachs Group to lead its expected IPO, which could value the company at more than $4 billion. JP Morgan Securities will co-lead the offering, according to Friday’s filing. A representative for the company said the exact timing and terms of the IPO have not yet been set.

Procore recorded $289.2 million in revenue in 2019 and $186.4 million in 2018, according to the filing. The company saw respective net losses of $83.1 million and $56.7 million. The filing touts a 40 percent jump in customers from 2018 to 2019, when the company saw its clients increase to 8,506.

But as with many startups, the company cautioned that it’s “not certain whether or when we will be able to achieve or sustain profitability in the future.” (Similar language was included in IPO filings for WeWork, which ultimately abandoned its plans to go public, as well as Uber and Lyft. Zillow Group included almost identical language in its 2011 S-1).

Procore counts some of the city’s largest developers and contractors, including Brookfield Properties and Turner Construction, among its clients. Procore raised $75 million from Tiger Global Management in December 2018. Its other investors include Dragoneer Investment Group and Iconiq Capital. Last year, the company acquired Honest Buildings, an online platform that allows landlords and developers to oversee construction and repair projects.

According to the filing, Craig “Tooey” Courtemanche Jr., Procore’s president and CEO, founded the company in 2002 after becoming frustrated by the lack of transparency surrounding construction work at his home.

“Getting information about something as simple as what work had been completed or how the budget was changing as project plans evolved was surprisingly difficult,” the filing recounts.

In the past decade, interest in construction-focused tech has grown significantly. According to the global consulting firm McKinsey & Company, investors have poured more than $27 billion into the sector since 2008.


Related Articles

arrow_forward_ios
David Bitton, CMO and co-founder of DoorLoop and Ori Tamuz, CEO and co-founder of DoorLoop (Bitton, DoorLoop, Getty)
Startup DoorLoop to take on goliaths in rental management software
Startup DoorLoop to take on goliaths in rental management software
Procore CEO Tooey Courtemanche (Procore, Getty)
Procore acquiring construction management startup Levelset for $500M
Procore acquiring construction management startup Levelset for $500M
Builders broke ground on more residential properties in August than had been predicted, but the number of single-family housing starts fell below expectations. (iStock)
August housing starts rose but single-family properties fell short
August housing starts rose but single-family properties fell short
Blueground CEO Alex Chatzieleftheriou (Getty, LinkedIn via Chatzieleftheriou)
Blueground raises $140M in Series C equity, valuing startup at $750 million
Blueground raises $140M in Series C equity, valuing startup at $750 million
Alex Rodriguez and Constantine Scurtis of Lynd (Getty)
A-Rod gets 13 lawsuits dismissed that were filed by ex-brother-in-law over real estate empire
A-Rod gets 13 lawsuits dismissed that were filed by ex-brother-in-law over real estate empire
Homebuilders are more confident in home sales than they’ve been in the last three months (Getty)
Homebuilder sentiment rose in September, ending three-month decline
Homebuilder sentiment rose in September, ending three-month decline
The Saratoga County construction company owner defrauded homebuyers and lenders out of $1 million, spending money on himself or other jobs rather than the homes he promised to build. (iStock)
Upstate homebuilder gets prison for failing to deliver
Upstate homebuilder gets prison for failing to deliver
1223 East New York Avenue with Carlyle Group's Jason Hart (Google Maps, Carlyle Group)
Carlyle Group scores $32M construction loan for Crown Heights storage facility
Carlyle Group scores $32M construction loan for Crown Heights storage facility
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...