Briq, a rapidly growing startup, has made waves in the financial technology industry with its innovative use of artificial intelligence (AI) for automating financial processes in the construction field. Recently, the company announced an extension of $8 million at a $150 million valuation, bringing its total amount raised to $38 million.
Briq’s remarkable ability to secure funding at a higher valuation is especially noteworthy in today’s uncertain economic climate, where many startups are struggling to secure funding or are doing so at lower valuations. The company’s previous raise of $30 million took place in 2021, a time when capital was more easily accessible and valuations were rapidly increasing.
In an interview with TechCrunch, CEO and co-founder Bassem Hamdy shared the company’s strategic decision to “wait out the market” and raise a smaller amount at a flat valuation, rather than risking a potentially unsuccessful Series C funding round.
Key investors in this extension round include Tiger Global Management, whose initial investment of $30 million in June 2021 led the way for the current raise. MetaProp, Blackhorn, and Eniac have also co-led the round, with the addition of German firm Nemetschek as a backer.
Briq’s impressive growth is reflected in its customer base of nearly 400 companies, including Choate Construction, Catamount Construction, Fessler and Bowman, and Elder Construction. The company has seen a 40% increase in Annual Recurring Revenue (ARR) in 2023 compared to the previous year, and has implemented a successful cost reduction strategy resulting in a 45% decrease in employees.
“Briq essentially sits on top of other solutions to run them better,” explains Hamdy. “It’s like a playbook.”
Bots automating business processes
Founded in 2018 by former Procore executive Bassem Hamdy and Wall Street veteran Ron Goldshmidt, Briq has been incorporating AI into its offerings long before the term was popularized in the mainstream. The company’s flagship technology is its library of over 200 generative automation bots that have been trained to perform financial workflows specific to the construction industry.
Briq offers two primary products: Briq AutoPilot and Briq CoPilot. The former uses bots to automate up to 80% of business processes such as accounts payable, accounts receivable, and payroll, while the latter focuses on financial forecasting and risk detection.
According to Hamdy, these bots have been trained to read documents, apply logical rules, and take actions, similar to Tesla’s autopilot for accounting. This not only streamlines processes but also addresses the labor shortage in the construction industry.
Notable investor Aaron Block, managing partner at MetaProp, applauds Briq for introducing the concept of using robots in the back office to manage costs and other essential tasks. “The construction community is on fire for this,” says Block.
Despite its current focus on the North American general and specialty contracting market, Briq has plans to expand into new geographies in the near future. Hamdy expresses interest in the Middle East, Asia, and emerging European markets, citing them as strong potential construction markets.
Looking ahead, Hamdy is excited about the possibility of incorporating conversational AI into financial transactions, with plans to introduce this technology in 2024.
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