Trunk Tools Emerges from Stealth with $9.9 Million Round
A FinTech specifically made to serve the construction industry has built itself an impressive seed round.
About the round:
This week, Trunk Tool emerged from stealth mode to announce a $9 million funding round. The oversubscribed seed round was led by Innovation Endeavors with Fifth Wall, Foundation Capital, and others also participating. Furthermore, the company announced that it had been accepted into the latest Stanford dy/dx program.
With the new capital, the company intends to expand its team, accelerate the development of its “output-focused incentives solution,” and increase market adoption.
About Trunk Tools:
Trunk Tools is a platform that allows construction companies to offer financial flexibility to employees. With the service, workers can access a portion of their wages on a daily basis. Plus, Trunk Tools integrates with existing payroll systems.
The platform also features an incentive program, allowing managers to create productivity goals as well as safety rewards. Workers can receive these updates via SMS and accept the goal. Then, upon on-time completion, they can receive funds directly on their Trunk Tools debit card. These cards can also be used for per diem payments.
What they’re saying:
Speaking to the need for Trunk Tools, the company’s Founder and CEO Dr. Sarah Buchner said, “The manufacturing and construction industries have grappled with a labor shortage and productivity crisis that Trunk Tools is solving. Research from Engineering News-Record shows an all-time high in construction job openings and projects nearly 40% of existing craft workers retiring within 5 years. The construction and manufacturing industries must become more competitive employers in an environment where skilled labor is in increasingly short supply.” Buchner added, “This funding will enable us to deliver software and business solutions to help construction employers make on-site labor work more productive, safer, and rewarding.”
Elsewhere, Innovation Endeavors partner Scott Brady said of the firm’s investment, “With the construction industry currently facing significant labor shortages, Trunk Tools’ platform offers a much-needed solution. Trunk Tools empowers construction professionals to optimize workflows, enhance collaboration, and achieve unprecedented levels of efficiency. As an exceptional, fast-growing business spearheaded by a highly skilled and qualified team, we are thrilled to support Trunk Tools’ growth and success.”
On the surface, Trunk Tools may sound similar to other payroll access tools such as Clair — which recently raised some fresh funding of its own. However, it’s clear that Trunk Tools knows its niche and has built a unique product to serve it. On that note, given the specific market that Trunk Tools is targeting, the $9 million seed round is even more impressive. Then again, while the company is focused on the construction industry now, it’s easy to imagine the startup creating versions tailored to other verticals. Of course, that’s just speculation at this point, so we’ll need to wait and see what the future holds for the FinTech.