RealTime IT News

European Construction Industry Site Secures $16.9 Million

Build-Online.com, a business-to-business e-commerce site for Europe's $830 billion construction industry, completed second-round funding of $16.9 million.

The funds will drive expansion across Europe, just five weeks after its launch in the UK and its first year in Ireland, the company said.

The second-round investors include Goldman Sachs, Viventures (the French venture capital firm backed by Vivendi), and BancBoston Capital. Total funding for Build-Online.com now stands at $18.5 million.

Build-Online.com acts as an 'e-construction' site where building materials and services, which account for 65 percent of total construction costs, can be bought and sold. In addition, the site's project collaboration tool links together all the parties involved in a construction project, enabling them to manage every stage of the construction process from design to building and maintenance.

Build-Online.com said it estimates that e-construction can deliver 23 per cent savings in European construction and reduce construction project completion times by 15 percent.

Since the company's U.K. launch in January, Build-Online.com is managing projects worth over $200 million online including, the major redevelopment of Farmleigh House in Dublin on behalf of the Irish government.

"E-construction has the potential to deliver vast savings for the European construction industry, and our investment in Build-Online.com will further their development in Europe," said Adrian Jones of Goldman Sachs. Build-Online.com's revenues will be generated by charging fees for transactions carried out on-site.