Adaptive Closes $19 Million Funding Round

NEW YORK — Adaptive, a financial automation platform for the construction industry, has secured a $19 million Series A funding round.

The construction industry, faced with unique accounting and compliance requirements, is plagued by chronic payment delays and cash flow crunches, introducing significant risk and inefficiency to the build process that together amount to an estimated $273 billion in losses across the industry.

Adaptive is poised to address this with its automated financial management software designed specifically for SMB construction companies. Following rapid growth, the Company is set to scale, with the recent investment led by Emergence Capital along with participation from Andreessen Horowitz, Definition, Exponent, 3kvc, Box Group, and Gokul Rajaram. This brings Adaptive’s total capital raised to $26.4 million.

Adaptive combines AI, automation, and intuitive design to deliver a modern financial management experience, built specifically for the construction industry. The platform offers end-to-end financial management, including budgeting, cash flow analytics, expense tracking, accounts payable, accounts receivable, vendor management, and electronic payments.

Nick Schiffer, founder of the Boston-based homebuilding company NS Builders and host of The Modern Craftsman podcast, said, “Managing cash flow and staying on top of project budgets is a full-time job in construction. Like most other homebuilders, we’re a small business; we operate on thin margins so we want all available staff time devoted to building the best possible product for our clients, not bookkeeping.

“The year before we started using Adaptive to automate our financial management, we lost out on over $100,000 of reimbursable expenses due to error-prone cost tracking. Every builder I know has the same problem and it leads to higher prices across the board,” said Schiffer.

“The payment delays and cash flow problems we see in construction largely arise from outdated, manual back-office processes,” said Matt Calvano, Co-Founder and CEO of Adaptive. “Our platform leverages AI and automation to cut through this back office fog, delivering real-time clarity into financials and significantly accelerating payments.”

Since its launch in February 2023, Adaptive has grown rapidly, with more than 280 construction companies managing over $1.4 billion of project volume on the platform. Adaptive serves a wide range of small to medium-sized construction businesses, including custom homebuilders, commercial general contractors, real estate developers, and specialty trades.