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Procore: Laying the Groundwork to Change an Industry

Procore: Laying the Groundwork to Change an Industry

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https://www.iconiqcapital.com/growth/insights/procore-laying-the-groundwork-to-change-an-industry

Stay Ahead with ICONIQ Growth

It is not the beauty of the building you should look at: it’s the construction of the foundation that will stand the test of time.” – David Allan Coe

With Procore embarking on a new chapter as a public company, ICONIQ Growth is humbled and grateful to have been a close partner to the company, investing in the business over 30 times having led numerous financings and providing liquidity to some shareholders. We could not be more grateful for the opportunity to partner with CEO Tooey Courtemanche and the entire Procore team to help transform an industry. We want to congratulate the entire Procore team on another incredible milestone on their journey to improve the lives of everyone in construction!

Construction is Complex

Since the very beginning of our partnership, we learned that construction is astonishingly complex.

As famous German architect Helmut Jahn said, “Every building is a prototype. No two are alike.” Whether a new skyscraper in Manhattan, a state-of-the-art stadium in Los Angeles or an average suburban home, construction requires disparate groups including owners, designers, engineers and contractors to collaborate in order to create something beautiful.

The list of stakeholders is endless. In addition to the architects, engineers, owners, general contractors and subcontractors, there are financial professionals not located at the job site, banks providing financing, insurance companies and many others. Everyone must break down their operating silos and work together to build a plan unlike any other before, while being productive, staying efficient, meeting timelines, complying with standards and limiting their respective liabilities.

There are also multiple phases of a construction project where different stakeholders come and go, ranging from design, pre-construction budgeting and vendor bidding, all the way to final sign-off and transition to facilities and maintenance.

The only constant in a construction project is change. With key stakeholders distributed physically and across different organizations, plans shift throughout the process. Miscommunication can increase, mistakes can happen, rework can become necessary and budgets can be challenged.

Due to the field work and back-office dichotomy, the construction industry has historically lagged in IT spend and relied on manual processes such as paper, email, faxes and cell phone (remember Nextel?). Even today, the majority of the industry still uses legacy, on-premise software or a mix of point solutions that only address a niche for a specific stakeholder versus the broader ecosystem.

Laying the Groundwork

When Tooey founded Procore in 2002, he made it his life’s work to modernize the construction world, an industry he grew up in and loves dearly. From the beginning, Procore’s mission has not wavered—to connect everyone in construction on a global platform.

Tooey’s vision was bold and unique from the beginning. From inception, yes 2002, Procore was a solution hosted in the cloud and was focused on enabling people in the same organization to collaborate without pen and paper despite being in different locations and at the same time enabling stakeholders from different organizations to collaborate and exchange information around common projects.

The road was not easy, but Tooey and his team were unwavering. There were no smart phones and certainly no tablets on job sites. Most construction sites did not have internet connectivity. Construction ERP systems were not cloud based and did not offer APIs for easy integration. And importantly, while there was acknowledgement around the challenges, industry stakeholders were not keen to change behaviors.

The road was long and further challenged by the Financial Crisis of 2008 when the financial markets and the construction industry saw a once in a century bottom.

Tooey and his then President Steve Zahm’s resolve to survive and carry forward was extraordinary. Tooey’s vision was a north star he would not abandon and by listening to the needs of each stakeholder and innovating with the tools available at the time to solve problems and make people’s lives better, Procore steadily was laying the foundation that would later change this industry.

Starting Our Journey with Procore

In October 2013, we flew into Santa Barbara to meet Tooey, Steve and the Procore team for the first time. Nestled in the American Riviera with idyllic views of mountains meeting the sea, we eventually made our way to a nondescript office building in Montecito. There we found handmade wooden desks (a rite of passage in the early days for new Procore employees) and a dedicated team of 75 or so people that had been working to understand the exact needs of the construction industry for the last ten years.

Tooey’s vision was captivating and equally matched by the humility and openness around the challenges ahead. We were also struck by a company culture designed to scale and change an industry—a collaborative work environment with a core foundation of three values: openness, optimism and ownership. This ethos drove employees to join the company and these core values were embodied by everyone we met.

As an investor in the company for the last six years, ICONIQ Growth has had the honor to support the company’s tremendous growth to over 2,000 employees and 12 offices around the world by March 2021. Over this time, Procore has remained focused on driving a people-first culture and above all, listening to the needs of their customers and partners and innovating to improve the lives of everyone in the construction industry.

Building the Construction Operating System

What happens when you have thousands of people aligned with an unparalleled culture, visionary leadership and powerful community? Or when you have an entire company working together—listening and building for the specific needs of nothing other than that industry? You get an operating system for construction—an end-to-end, cloud-first software platform for construction; a modern, intuitive and open architecture for construction; a software platform built from the ground up for construction.

What you get is Procore.

We believe everything at Procore is built with purpose. Over the years, Procore has listened to its customers and continued to evolve its platform, growing its product categories to include Preconstruction, Project Management, Resource Management and Financial Management.

The Road Ahead

We at ICONIQ Growth are humbled and grateful to be partners with Tooey and the entire Procore team as they continue to execute on their bold vision as a public company. In many ways, Procore sets the bar for a core aspect of our investment philosophy: to partner with companies that are relentlessly focused on solving complex and important problems and building cultures that endure.

We are deeply grateful for our long-term partnership with Tooey, Steve and the entire Procore team— true visionaries that remain as passionate about changing the industry as the day we first met them.

Congratulations to Procore on its initial public offering, a major milestone and recognition of what they have built, but most importantly congratulations for laying the groundwork to change construction for the better. We could not be more excited for the journey ahead!

Notes

The views expressed in this presentation are those of ICONIQ growth ("ICONIQ " or the "firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision. This presentation is for educational purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy any securities which will only be made pursuant to definitive offering documents and subscription agreements, including, without limitation, any investment fund or investment product referenced herein.Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is prohibited.This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ.

Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information.All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events.For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.

Disclaimer:

Unless otherwise indicated, the views expressed in this presentation are those of ICONIQ Growth (“ICONIQ" or the “Firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision. Information used in this presentation was obtained from numerous sources. Certain of these companies are portfolio companies of ICONIQ Growth. ICONIQ Growth does not make any representations or warranties as to the accuracy of the information obtained from these sources. 

This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services.  Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein. 

Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized.

This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ.

Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information.

All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. Numbers or amounts herein may increase or decrease as a result of currency fluctuations.

Disclaimer

The views expressed in this presentation are those of ICONIQ Growth ("ICONIQ" or the "firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision.  This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services. Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein.  Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized. This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ. Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information. All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you. ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation. Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.

ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.

Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

Copyright © 2024 ICONIQ Capital, LLC. All rights reserved.

Disclaimer

The views expressed in this presentation are those of ICONIQ Growth ("ICONIQ" or the "firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision.  This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services. Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein.  Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized. This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ. Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information. All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you. ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation. Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.

ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.

Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

Copyright © 2024 ICONIQ Capital, LLC. All rights reserved.

The ICONIQ Growth website does not present information relating to ICONIQ Capital, its investment funds, or its advisory business and should not be consulted for any advisory purposes. The ICONIQ Growth content is intended for the use of company founders and executives.