The added venture investment comes after the company hit an “inflection point” this summer amid steadily increasing work, according to Rivet Work CEO Ryan Meitl, who said digital tools in the construction sector are increasingly in demand.
“The construction trades in general are on the cusp of a big transformation, both generationally and also how they operate their businesses,” Meitl told Crain’s. “And every customer we talk to now is looking for some sort of digital tool to help them compete, help them gain efficiencies.”
This newest funding round was led by Ann Arbor-based Augment Ventures, with Detroit Venture Partners, Michigan Rise, a variety of angel investors and others joining the syndicate, according to a news release shared with Crain’s.
“We’re excited to support the Rivet team in their mission to revolutionize how people and assets are managed by skilled trade contractors,” Sonali Vijayavargiya, founder and managing partner of Augment Ventures, said in the release. “The construction industry is hungry for new age technology solutions to support a new wave of skilled trades joining the industry. Rivet’s out-of-the box scheduling and asset management solutions will start delivering impact from day one and do not require extensive IT implementation.”
Rivet Work’s technology platform aims to streamline the processes for construction companies and provide a means through which costly scheduling mistakes can be eliminated in an industry known for a slower adoption of technology than many.
The company has sought to grow via a partnership with the electrical division of manufacturer Ideal Industries Inc. out of Sycamore, Ill., also an investor in the startup company.
Executives at Rivet say the company now has a roughly 20 percent market share among unionized electrical contractors in metro Detroit in terms of workers scheduled, and expect to exceed that figure to exceed 50 percent in 2022.
Meitl said there are around 5,000 electrical contractors in the region. He added that the company will seek to expand into other construction trades, but electrical has been a key focus. Additionally, through the partnership with Ideal Industries, the company plans to expand to 40 new territories around the country.
Rivet Work has nine employees presently and expects another hire by the end of the year, said Meitl, who added that his intention is to grow the company in Detroit.
The last point is a key factor for the participation of Detroit Venture Partners, the VC firm tied to billionaire Dan Gilbert, according to Cory Tincher, a DVP investor.
“We are thrilled to be a part of this latest investment round for Rivet,” Tincher said in an emailed statement to Crain’s. “We’ve seen firsthand Ryan’s and his team’s tireless focus on the customer experience, disciplined product iteration, and commitment to Rivet’s long-term vision. The proof is in their early traction with some of the largest skilled trade organizations in the country. Best of all, they’re building Rivet here in Detroit.”
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