Procore to Postpone IPO, Raise Funds at $5 Billion Value

(Bloomberg) -- Procore Technologies Inc., a construction software company that filed in February for a U.S. initial public offering, postponed those plans and instead completed a private funding round, according to people familiar with the matter.

It raised more than $150 million at a valuation of about $5 billion, the people said, asking not to be identified because the matter isn’t public. New investors in the round include D1 Capital Partners, the investment firm run by Dan Sundheim, they said.

Procore could still go public this year if markets stabilize, the people said.

Representatives for Procore and D1 Capital declined to comment.

The coronavirus turmoil is forcing companies that had been considering going public to evaluate alternative ways to raise funds. Those largely unscathed by the pandemic may look at listing early in the third quarter, Nasdaq Inc. Chief Executive Officer Adena Friedman said in a Bloomberg TV interview last week.

Procore posted a net loss of $83 million on revenue of $289 million in 2019, according to its filing Friday with the U.S. Securities and Exchange Commission. Its 2019 revenue rose about 55% from the previous year.

Procore’s investors include Iconiq Strategic Partners and Bessemer Venture Partners, among other backers.

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