News Release
FOR IMMEDIATE RELEASE
Venture-backed company thrives and expands despite softened construction industry market
Cincinnati, OH (October 21, 2009) – iSqFt/Construction Software Technologies (iSqFt), the construction industry’s leading provider of online preconstruction and bid management software as a service, has acquired Bid News Construction Reports, LLC and Plan Express, Inc. These acquisitions, coupled with investments in organic expansion, will allow the company to build on its successful track record of profitable growth.
The iSqFt web application facilitates every aspect of the preconstruction process, from helping construction companies find additional work to streamlining and digitizing the traditionally paper-based bidding process, bringing market participants together in one place for a more effective, cost-efficient process. In addition, the company is mining the more than 12,000 construction projects posted monthly to provide actionable sales intelligence to building product manufacturers and suppliers through its new SupplyLink™ Leads service.
iSqFt expects the acquisitions of Tulsa-based Bid News and Memphis-based Plan Express to contribute to top-line revenue and customer growth. At the same time, the company is investing in organic growth through expansion of iSqFt’s geographic coverage for its Internet Plan Room® and Private Construction Office services and continued build out of its new SupplyLink™ Leads service. All told, the company expects to create as many as 100 additional jobs at its Blue Ash headquarters over the next three years.
“The iSqFt online pre-construction platform, which networks general contractors, subcontractors and suppliers to bid on projects, offers its subscribers heightened relevance and value during this soft construction market,” said Dave Conway, iSqFt president and CEO. “Since industry participants need to find and bid more projects than ever to increase the chances of winning jobs, iSqFt’s services are proving to be mission-critical.”
As a result, iSqFt – which had already been growing its revenues by more than 20 percent a year for the past three years – has been performing even better recently. Even though the construction industry has been one of the hardest hit in the current recession, contracting by an expected 20 percent this year, iSqFt’s revenue is up 30 percent and profits have increased substantially over the past year. Over the past five years the company has tripled its customers.
“What you have historically seen in the construction industry is that when times were tough, contractors did not invest in technology,” said Conway. “What we’re seeing in this recent downturn is that contractors are looking to invest in technology to improve their effectiveness at a lower cost.”
To help fund these growth opportunities, the company raised $2.5 million of equity in an extension of its Series C financing alongside senior debt. Existing investors participated in this oversubscribed round of financing, including River Cities Capital Funds, Ticonderoga Capital, Chrysalis Ventures, Iron Gate Capital and Reservoir Venture Partners.
“We are pleased to continue our support for iSqFt, a strong performer in our portfolio,” said Dan Fleming, Managing Director at River Cities Capital Funds. “Though the company has reached profitability, this equity round, combined with debt financing, has allowed iSqFt to pursue acquisitions and accelerate its organic growth.”
In the past five years, iSqFt was twice recognized by Inc. magazine on its Inc. 500 list of the fastest growing companies in the United States. More recently, iSqFt’s two signature products – the Internet Plan Room® and the Private Construction Office – were both named Top Products for 2008 by Constructech magazine, which covers industry trends to find the most innovative software available to the commercial construction industry today.
About iSqFt:
Founded in 1993 as Construction Software Technologies, Inc., Cincinnati‐based iSqFt is the construction industry’s leading provider of online bid solicitation and preconstruction management services in the United States. Through strategic partnerships with the Associated General Contractors of America (AGC), local AGC Chapters and other industry organizations, the firm provides tens of thousands of general contractors, subcontractors, and suppliers in markets around the U.S. with online tools and solutions to increase competitiveness through reduced costs and increased efficiency. iSqFt is also a proud member of U.S. Green Building Council and is committed to the practices of sustainable design and construction. For more information about iSqFt and its applications, visit www.isqft.com.
About River Cities Capital Funds
River Cities Capital Funds provides expansion-stage equity financing and business acumen to high potential private companies. Our practice is diversified between healthcare, IT and the intersection of these sectors. National in scope, our footprint is deepest in the Midwest and Southeast with offices in Ohio and North Carolina. We specialize in helping entrepreneurs with market-proven solutions, services and devices effectively and efficiently build infrastructure for rapid and profitable revenue growth. With $390MM under management, a broad array of business resources, and a consistent track record of entrepreneurial success, River Cities has established itself as a preferred source of growth capital. We are actively seeking new investments for our fourth fund.
About Ticonderoga Capital
Ticonderoga Capital manages approximately $250 million in committed capital and makes growth capital investments of $2-$5 million primarily in Healthcare software and services, and general business Software companies. We structure our investments as either subordinated debt or preferred stock in order to meet the unique needs of a particular growth financing opportunity. Our capital is typically used to accelerate revenue growth, make acquisitions, or provide liquidity to founders and existing shareholders. We are often the lead and first institutional investor but we also participate as a member of larger syndicates with other respected investment groups. We have the ability to participate in and lead financings of $5-$20 million. Target companies have proven business models, multiple clients and revenue run rates exceeding $10 million. Please see www.ticcap.com for more information.
About Chrysalis Ventures
Founded in 1993, Chrysalis Ventures manages one of Mid-America’s largest funds for early-stage and growth investments with approximately $400 million under management. Focused on partnering with entrepreneurs to build enduring businesses in industries undergoing significant transformation, Chrysalis has invested in over 60 companies primarily in the Healthcare and Technology sectors. Headquartered in Louisville, KY, Chrysalis has offices in Cleveland, Pittsburgh and Ann Arbor. For more information, please visit www.chrysalisventures.com.