BlueTape Raises $55 Million to Transform Construction Financing and Payments for SMBs

BlueTape, leading payments and financing provider for the construction industry, announced the completion of a $50 million debt round led by Arcadia Funds and a $5 million seed round led by Chicago Ventures.

Other investors include executives from the construction industry, real estate developers, and Plug and Play Ventures.

BlueTape now has the resources to continue providing payments and financing to the construction industry. BlueTape will increase lending, expand its team, and create new products to assist construction companies in dealing with the nation’s housing and infrastructure crises.

The construction industry in the United States is worth more than $1.3 trillion, with over 3 million small and medium-sized businesses. Unfortunately, the industry lags behind others in terms of technology adoption, and traditional financial institutions have ignored it.

BlueTape combines low-cost financing with simple accounts receivable and invoice management tools. BlueTape credit can be used by construction professionals to purchase building materials from any supplier and pay them back over time.

BlueTape has also established a network of construction industry dealers and suppliers who provide BlueTape credit to their trade customers immediately. This enables construction suppliers to reduce their risk while improving their cash flow and customer experience.

“We are excited to partner with BlueTape to provide affordable financing on demand for this industry. With the current economic uncertainty, BlueTape is needed more than ever to help construction businesses of all sizes operate successfully and thrive,” Arcadia Funds’ Managing Director and CEO, Andrew Hallowell, stated.

“Arcadia is constantly on the lookout for these opportunities, having built a powerful portfolio over the past several years by helping similar agile and innovative lenders like BlueTape make lives better with credit.”

Chicago Ventures partner Jackie DiMonte stated, “Given the team’s background, we strongly believe BlueTape is the right company to tackle one of the fundamental obstacles for any construction business. They are paving the way for small businesses in the industry to have access to working capital and benefit from adopting new technology.”

Key Benefits for Construction SMBs

Convenient funding: Quick access to much-needed funding for construction materials keeps existing jobs moving and opens the door to more new revenue-generating projects.

Designed for SMBs in Construction: Small construction businesses have a higher approval rate than other solutions.

Repay over time: In an inflationary environment, assisting small businesses with cash flow management is more important than ever. BlueTape allows contractors to pay their building material invoices for up to 120 days.

Accepted at the nation’s top building material suppliers: BlueTape credit is redeemable at all building suppliers used and trusted by industry professionals.

Easy to use: BlueTape on mobile makes managing invoices, collecting payments, and paying bills simple and convenient for construction professionals who are constantly on the go.

“We have had enormous demand from construction businesses for our services since we launched. Inflation and supply chain interruptions mean builders and contractors need more working capital. With the funding from Arcadia and Chicago Ventures, we will be able to help more construction companies get the financing and payments services they need to navigate economic uncertainty and supply chain issues,” BlueTape CEO and Co-Founder Yaser Masoudnia said.