Construction tech startup Procore shelves IPO

The firm’s $150M private funding round boosted its valuation

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

The latest coronavirus casualty is construction startup Procore, which has shelved its recent plans for an initial public offering. The news isn’t all bad for the California-based construction management software company. A private funding round has pushed its valuation to $5 billion.

After filing paperwork in February for an IPO, the company completed a private funding round that raised more than $150 million, according to Bloomberg.

The investors include Dan Sundheim’s investment firm, D1 Capital partners. Procore has not ruled out going public later this year if the markets stabilize, according to the report.

The economic distress due to the pandemic has caused numerous companies to reassess their IPO plans. Nasdaq CEO Adena Friedman told Bloomberg TV that unaffected companies may go public at the beginning of the third quarter.

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Procore recorded net losses of $83.1 million in 2019 and $56.7 million in 2018, according to its March filing, on respective revenues of $289.2 million and $186.4 million.

Procore counts some of New York City’s largest developers and contractors, including Brookfield Properties and Turner Construction, among its clients.

In 2018, Procore raised $75 million from Tiger Global Management. Its other investors include Dragoneer Investment Group, Bessemer Venture Partners and Iconiq Capital. Last year, the firm acquired Honest Buildings, an online platform that allows landlords and developers to oversee construction and repair projects. [Bloomberg] — Georgia Kromrei