A payments and financing company with a focus on the construction industry concluded a $50 million debt investment and a $5 million venture capital investment to assist small and medium-sized businesses (SMBs) in the sector pay for construction materials.
For the Silicon Valley-based company BlueTape’s launch last year, Arcadia Funds provided loan financing; Chicago Ventures contributed startup money. Additional investors included property developers, building industry professionals, and Plug & Play Ventures, according to a news release.
BlueTape offers a range of financing options with integrated features for handling accounts receivable and invoices. According to the press release, the company also has partnerships with construction industry suppliers and dealers that give trade clients instant BlueTape credit.
“With the current economic turbulence, BlueTape is more important than ever to aid construction firms of all sorts to function efficiently and flourish,” says Andrew Hallowell, managing director and CEO of Arcadia Funds.
On their website, CEO Yaser Masoudnia and COO Patrick Gannon state that they developed BlueTape in order to provide SMBs with a low-cost, adaptable solution to the ongoing payment administration and financial issues faced by the construction industry. The only lender using the BlueTape platform is CBW Bank.
“Since we first opened, the building sector has placed a sizable demand on our services. Building and construction companies need more working capital as a result of supply chain interruptions and inflation “said Masoudnia.
He stated, “We will be able to assist more construction firms in receiving the financing and payment services they need to deal with supply chain difficulties and economic uncertainty with the backing of Arcadia and Chicago Ventures.”
Jackie DiMonte, a partner at Chicago Ventures, said: “We truly believe BlueTape is the greatest startup to handle one of the major issues any construction company has, given the experience of the team. Small businesses in the industry are now able to obtain operational finance and profit from utilizing innovative technology thanks to them.”
