ProgressClaim.com, which has developed specialised software for the construction industry, has raised $1,500,000 in the form of a convertible note.
Tauro Capital, which raised the funds for the Melbourne business, said the funds would be drawn down in three tranches. ProgressClaim also has raised about $500,000 from smaller investors, and a number of parcels in Round 3 are still available to investors.
ProgressClaim plans to use the funds to complete development of its key software product and take it to market.
“We are off to a fantastic start in our capital raising. Investors really seem to get our idea of modernising communications and payments in the construction industry,” Lincoln Easton, Progressclaim.com CEO, said.
Paradigm shift for industry
ProgressClaim targets a key pain point in the construction industry: processing, validation and payment of continuous claims based on progress of construction. Its software is an add-on that builders and construction companies can install to ease payments issues.
The company claims its software eases administrative burden and delays, resolves validation issues and costs, besides reducing the likelihood of legal disputes. ProgressClaim says the inefficient process leads to disputes that cost an estimated $7 billion per annum in Australia.
ProgressClaim’s software is cloud-based and allows for progress claims to be prepared, submitted, assessed and certified over the web.
Initially, the company is focusing on the construction industry but, its software “could readily be configured for use in multiple vertical markets.” Conceivably, ProgressClaim could expand into global industries that generate a mind-boggling $12 trillion per annum, according to the company. Even within Australia, that market is estimated at $300 billion per annum.
ProgressClaim has a business model that should appeal to investors. Besides subscription fees for its software, the company charges a transaction fee that will yield steadily growing revenues as the business grows.