BuildOnline, a European provider to the construction industry of web-based software, has secured a £10m (E16m) third round of financing from investors ETF Group, Goldman Sachs, GRP, Viventures, BancBoston Capital, Sal Oppenheim and Delta Partners.
BuildOnline has developed an range of products spanning project collaboration, tendering and procurement, designed specifically to speed up the existing processes in the construction industry. It sells its software on a licence basis, and provides training and advice in transferring to web based processes. It operates in the UK, Ireland, France and Germany.
Brian Moran, who founded the company in 1998, explained: “The main reason that the construction industry will benefit from the internet disproportionately to other industries is that it is one of the largest industries in the world as well as the most fragmented. It’s a marathon not a sprint to transform this industry, and I am delighted BuildOnline now has the funds to continue as a leader of this transformation.” The funds will be used to further develop the company's software and service capabilities. Buildonline is aiming to be profitable by 2002.
Mark Suster, chief executive of BuildOnline, said that the funding was a “huge” signal to the market. “We are delighted to have secured the largest funding made in the property and construction industry in Europe. In an incredibly tough market for fund raising, we have proven our credentials and earned the recognition of Jupiter Research as ‘One of the 10 most likely B2B’s in Europe to succeed’.. We will now focus on achieving profitability and proving that European technology and innovation is alive and well,” he said.
BuildOnline raised a £12m second round of financing in February 2000. Among its clients is engineering group Balfour Beatty which recently announced that it would use BuildOnline’s software to improve its operating efficiencies. Buildonline also says it has a strategic alliance with British Telecom to deliver online services to the property and construction industry throughout the U.K.