On March 2, construction management and workflow platform Procore Technologies released an amended S-1 as it prepares to IPO. Procore first filed to go public more than a year ago, just before COVID-19 took its toll on the markets. Fearing uncertainty, management decided to postpone its public offering and instead went with a private investing round of $150 million at a $5 billion valuation.
So why exactly is this software business exciting enough to garner a $5 billion valuation? Let’s take a look.
Procore is a cloud-based construction management platform. Construction is highly complex, labor-intensive, and requires constant collaboration among multiple stakeholders. With manual labor being such a critical component of each given project, construction has been slow to adopt digital solutions. Procore seems to be at the forefront of changing that.