Company Profile: Billd

Background

Overview

Founded in 2018, Billd is a financial technology company headquartered in Austin, Texas, specializing in providing financial solutions tailored for commercial subcontractors in the construction industry. The company's mission is to empower subcontractors by addressing cash flow challenges inherent in construction projects, thereby enabling them to undertake larger projects and grow their businesses. Billd's vision is to revolutionize construction financing by offering flexible, project-based credit solutions that align with the industry's unique payment cycles.

Industry Significance

The construction industry is notorious for its complex and often delayed payment structures, where subcontractors frequently face extended periods before receiving payment for completed work. Billd addresses this critical issue by offering financial products that bridge the gap between material procurement and payment receipt, thereby enhancing liquidity and operational efficiency for subcontractors.

Key Strategic Focus

Core Objectives

• Alleviating Cash Flow Constraints: Providing financial products that enable subcontractors to manage upfront material costs without depleting their working capital.

• Facilitating Business Growth: Empowering subcontractors to bid on and execute larger projects by ensuring access to necessary funds.

Areas of Specialization

• Material Financing: Offering up to 120-day terms on material purchases, allowing subcontractors to pay suppliers upfront and defer repayment until they receive payment for their work.

• Pay App Advance: Providing advances on approved pay applications, enabling subcontractors to access funds tied up in the payment cycle.

Key Technologies Utilized

Billd leverages proprietary analytic tools designed specifically for the construction industry to assess risk and tailor financing solutions. These tools consider industry-specific factors, offering a more accurate evaluation of subcontractors' financial needs compared to traditional credit metrics.

Primary Markets Targeted

Billd primarily serves commercial subcontractors across the United States, addressing the financial challenges prevalent in the construction sector.

Financials and Funding

Funding History

• January 2019: Secured a $60 million Series A funding round led by LL Funds, aimed at launching new payment methods for the construction industry.

• July 2021: Closed a $30 million Series B funding round, also led by LL Funds, with participation from RJT Credit and Ulysses Management, to expand product offerings and scale operations.

• October 2024: Raised $17.5 million in strategic funding led by LL Funds and MissionOG, with participation from RJT Credit, Ulysses Management, and HighSage Ventures, to accelerate growth and enhance the product suite.

• November 2022: Secured a $100 million debt facility led by LL Funds to support increased demand for its Material Financing and Pay App Advance products.

Utilization of Capital

The funds raised have been allocated towards expanding product and technology offerings, scaling operations, enhancing infrastructure, and recruiting top industry talent to support rapid growth.

Technological Platform and Innovation

Proprietary Technologies

Billd has developed industry-specific analytic tools that assess risk and tailor financing solutions for subcontractors. These tools consider the unique financial dynamics of the construction industry, offering a more accurate evaluation compared to traditional credit metrics.

Scientific Methodologies

The company's methodologies include project-based credit evaluation, which aligns financing terms with construction payment cycles, thereby mitigating cash flow challenges for subcontractors.

Leadership Team

• Chris Doyle, CEO and Co-Founder: With extensive experience in both construction and finance, Chris co-founded Billd to address the financial challenges faced by subcontractors.

• Jesse Weissburg, Co-Founder: Bringing a background in construction and financial services, Jesse played a pivotal role in establishing Billd's mission and product offerings.

• Jon Katz, Senior Vice President of Marketing: Jon leads the marketing initiatives at Billd, focusing on brand development and market expansion.

Leadership Changes

• November 2023: Allison Dancy appointed as Chief Marketing Officer, bringing extensive experience in marketing strategy and brand development.

• October 2023: Brad Cooper appointed as Chief Customer Officer, focusing on enhancing customer experience and satisfaction.

Competitor Profile

Market Insights and Dynamics

The U.S. construction industry faces significant cash flow challenges due to delayed payment cycles, creating a demand for financial solutions tailored to subcontractors. The market for construction-specific financing is growing, with increasing recognition of the need for products that align with industry payment practices.

Competitor Analysis

While Billd is a pioneer in construction-specific financing, other companies are entering the space, offering various financial products to subcontractors. However, Billd's focus on flexible, project-based credit solutions and its deep understanding of the construction industry's unique challenges provide a competitive edge.

Strategic Collaborations and Partnerships

• American Express: Teamed up to help suppliers extend flexible finance terms across the U.S. construction industry, enhancing payment options for subcontractors.

• Atlas SP Partners: Partnered on a $144 million financing facility to accelerate growth for construction-specific financial solutions.

Operational Insights

Strategic Considerations

Billd's strategic focus on addressing the cash flow challenges of subcontractors positions it uniquely in the market. By offering tailored financial products that align with construction payment cycles, Billd differentiates itself from traditional financing options that often fail to meet the industry's specific needs.

Competitive Advantages

• Industry Expertise: Founded by professionals with backgrounds in both construction and finance, providing deep insights into the industry's challenges.

• Tailored Financial Products: Offering solutions specifically designed for subcontractors, such as Material Financing and Pay App Advance, which address common cash flow issues.

• Proprietary Analytic Tools: Utilizing industry-specific tools to assess risk and tailor financing solutions, offering a more accurate evaluation compared to traditional credit.