EquipmentShare, an equipment and digital solutions provider serving the construction industry, announced Wednesday the completion of a $290 million funding round led by a fund focused on family- and founder-led scaling businesses.
“Our growth continues to be fueled by new customers who are ready for a technology-driven construction solution,” said Jabbok Schlacks, CEO and co-founder of EquipmentShare. “This latest round of funding brings in growth capital from both new and existing investors. We were pleased to have completed this raise in a challenging macro-economic environment at a valuation that was 40 percent higher than the previous raise in 2021.”
Click here to read more about EquipmentShare’s previous $230M round.
Since inception, total equity investments into the company are now close to $700 million.
The latest funding — EquipmentShare’s Series E — is led by funds affiliated with BDT Capital Partners. It also includes participation from such existing investors such as RedBird Capital Partners, Tru Arrow Partners, and Sound Ventures, as well as several new investors including Brown Advisors.
“This successful and substantial equity raise is a testament to the strength of EquipmentShare and our robust growth profile,” said Trevor Schauenberg, CFO of EquipmentShare. “This capital will allow us to expand our U.S. footprint, continue to invest in our T3 technology platform and further strengthen our balance sheet for future opportunities.”
EquipmentShare was founded in 2014 by the Schlacks brothers, along with co-founders Brad Siegler, Jeff Lowe, and Matthew McDonald, after winning Startup Weekend in Columbia that year.
Since then, the company has experienced rapid growth, spurred by the demand for its fleet management technology and equipment solutions. In 2022 alone, EquipmentShare opened 32 new branch locations and acquired thousands of new customers. Today, its total footprint comprises more than 150 locations, including additional rental, retail and service locations.
The company’s success has also propelled Columbia — the location of its headquarters — as a hub for startups and innovation. The Missouri college town earned the 2022 Midwest Madness title in a region-wide online competition hosted by Chicago venture capital firm M25, and the Schlacks helped relaunch and reboot what is now Missouri Startup Weekend.
“We’re thrilled to partner with Jabbok and Willy Schlacks and the entire EquipmentShare team to help build the connected jobsite of the future,” said Henry Yeagley, partner and head of middle market at BDT & MSD Partners. “Drawing on decades of construction experience, they have created a profitable, fast-growing, tech-enabled business with the potential to meaningfully disrupt the equipment rental market and the broader construction space. This investment is emblematic of BDT & MSD’s merchant banking model and reflects our commitment to supporting strong founders and family owners in this segment of the market as they pursue their long-term strategic objectives.”
In 2023, EquipmentShare already has grown to 4,100 team members as it grows its locations — which includes equipment and service yards, research and development sites, dealerships for major brands, administrative offices and specialty solutions locations — to serve the rising demand for the company’s equipment and digital solutions.
Originally posted by Startland News 4/19/2023: https://www.startlandnews.com/2023/04/equipmentshare-2/