In a challenging funding environment where startups are finding it difficult to secure investment or are doing so at reduced valuations, it is noteworthy when businesses manage to secure funding at stable or increased valuations. This is particularly remarkable considering the easy availability of capital and surging valuations in 2021.
Briq, a company that has developed a platform for automating financial processes such as accounts payable and payroll within construction companies, has successfully raised $8 million in a follow-on round, maintaining its valuation at $150 million. This round follows its $30 million Series B round in June 2021, led by Tiger Global Management.
The CEO and co-founder Bassem Hamdy, in a conversation with TechCrunch, explained that Briq chose to raise a smaller amount at this stable valuation to minimize dilution, rather than attempting a Series C round in the current market.
Tiger Global reaffirmed its support for Briq by participating in this round, along with other investors including Blackhorn, Eniac, MetaProp, and the German multinational Nemetschek.
Briq, boasting around 400 clients, reported a 40% increase in its annual recurring revenue in 2023 compared to 2022. The company has also implemented cost-cutting measures, resulting in a 45% reduction in its workforce, bringing it down to 138 employees by the end of 2023.
Its client list includes names like Choate Construction, Catamount Constructors, Fessler & Bowman, and Elder Construction.
Hamdy describes Briq as a solution that enhances the efficiency of other software tools, likening it to a “playbook.” Founded in 2018 by Hamdy, a former Procore executive, and Wall Street veteran Ron Goldshmidt, Briq was an early adopter of AI in its products.
Briq’s solution revolves around its unique generative automation bots. With over 200 bots trained to perform tasks typically handled by humans in construction-related financial workflows, Briq offers two main products: Briq AutoPilot and Briq CoPilot.
Briq AutoPilot uses bots to automate up to 80% of predictable business processes like accounts payable and payroll. Meanwhile, Briq CoPilot focuses on automating financial forecasting, offering user guidance and risk detection to prevent financial missteps in construction projects.
Briq’s approach has reportedly led to significant overhead cost reduction and profit margin increases for its users, with the company automating over a million tasks in the construction industry to date.
The company views its competition as being with firms like UiPath and Automation Anywhere.
Looking to the future, Briq aims to expand beyond North America into new global markets, with a particular interest in the Middle East, Asia, and non-English speaking parts of Europe.
Hamdy also expressed enthusiasm about integrating conversational AI for financial transactions, a development he anticipates will occur in 2024.