Material Bank, a leading design materials marketplace, secured its second mega-round in a year, bringing the Boca Raton-based company’s valuation to $1.9 billion.
The company raised a $175 million Series D funding round led Brookfield Growth, with participation from additional strategic partners Fifth Wall, SoftBank Vision Fund 2, and RXR. This raise brings the company’s total funding to more than $325 million, including its $100 million announced in May 2021.
Material Bank intends to use the new capital to develop more technology tools and further automate its Tennessee logistics facility, fuel more international expansion, particularly in Europe, and make acquisitions. In March, the company acquired Amber Engine, a product information management software company and last year bought Clippings, a procurement platform.
“Material Bank is reinventing the way in which architects, designers, and corporate users search and sample by creating a unified platform with fast fulfillment capabilities,” said Josh Raffaelli, Managing Partner at Brookfield. “This instantly connects hundreds of suppliers with target customers and streamlines a historically lengthy selection process.”
Material Bank CEO Adam Sandow said Brookfield brings them a strategic investor with massive holdings in real estate and related industries and $700 billion under management. “We believe that the synergies between Material Bank and Brookfield will have a material impact on the speed of our growth and provide new opportunities to help our almost 500 brand partners capture additional market share.”
Founded in 2018, Material Bank seamlessly connects its global brand partners to its more than 90,000 active members by providing a scalable digital marketplace combined with a large-scale, robotic logistics facility,. Users are able to search from more than 300,000 SKUs on a single website, order samples up till midnight and get the materials in one box by 10:30 am the next day. The platform is free to use for design professional; Material Bank earns revenue by charging its brand partners. The company expects to exceed $100 million in revenue by the end of this year, Bloomberg reported.
Additional new investors 9Yards Capital and Echo Street participated in the Series D round, as well as the large investors from the Series B and C rounds, including Bain Capital Ventures, Durable Capital Partners LP, General Catalyst, BOND, Raine Ventures, and Lead Edge Capital, among others.
Follow Nancy Dahlberg on Twitter @ndahlberg and email her at email@example.com
- 6+ things to know in MiamiTech: News from Locality Bank, MoonPay, Synapse, SVB, DataCore, PeakActivity, JPMorgan plus many opportunities - January 27, 2023
- Miami-Dade Innovation Authority to provide funding and pilot-testing to startups addressing community challenges - January 26, 2023
- Innovation center at FMU opening today is a cornerstone of Ted Lucas’s big vision for the community - January 26, 2023