Procore CEO Craig “Tooey” Courtemanche Jr. (Credit: Boardroom Insiders, iStock)The latest coronavirus casualty is construction startup Procore, which has shelved its recent plans for an initial public offering. The news isn’t all bad for the California-based construction management software company. A private funding round has pushed its valuation to $5 billion.After filing paperwork in February for an IPO, the company completed a private funding round that raised more than $150 million, according to Bloomberg.The investors include Dan Sundheim’s investment firm, D1 Capital partners. Procore has not ruled out going public later this year if the markets stabilize, according to the report.The economic distress due to the pandemic has caused numerous companies to reassess their IPO plans. Nasdaq CEO Adena Friedman told Bloomberg TV that unaffected companies may go public at the beginning of the third quarter.Procore recorded net losses of $83.1 million in 2019 and $56.7 million in 2018, according to its March filing, on respective revenues of $289.2 million and $186.4 million.Procore counts some of New York City’s largest developers and contractors, including Brookfield Properties and Turner Construction, among its clients.In 2018, Procore raised $75 million from Tiger Global Management. Its other investors include Dragoneer Investment Group, Bessemer Venture Partners and Iconiq Capital. Last year, the firm acquired Honest Buildings, an online platform that allows landlords and developers to oversee construction and repair projects. [Bloomberg] — Georgia Kromrei This content is for subscribers only.Subscribe Now
EUROPE: Two consortia have been appointed to study the feasibility of the FinEst Link proposal to build a 92 km under-sea railway tunnel linking Finland and Estonia.A consortium of Ramboll Finland, Sito, Strafica, Urban Research and Pöyry Finland will estimate passenger and freight volumes and undertake a cost-benefit study. This will inform a future decision about whether there is a case for a tunnel, or whether it would be better to focus on developing the current maritime services and improving transport connections to the ports of Helsinki and Tallinn.A second report examining the technical and economic feasibility of the tunnel, the construction and maintenance costs and how to link it to the wider transport system will be produced by Sweco, WSP and Amberg Engineering. There were 10 expressions of interest in the contracts. ‘We received high-quality offers from large planning groups that have international expertise in carrying out large transport projects and assessing their impacts and, moreover, have local expertise in both countries’, said Kari Ruohonen, FinEst Link Project Manager at Helsinki-Uusimaa Regional Council, on February 15.The FinEst Link project is led by Helsinki-Uusimaa Regional Council in co-operation with Helsinki City Council, Finnish transport agency Liikennevirasto, the city of Tallinn, the Estonian Ministry of Economic Affairs and Harju County Council. The studies are being supported by the EU’s Interreg Central Baltic programme, with a budget of €1·3m over two years.Previous preliminary estimates have put the cost of the tunnel at between €9bn and €13bn. It would be significantly longer than the 57 km Gotthard Base Tunnel, 54 km Seikan Tunnel and 50 km Channel Tunnel, but shorter than the 120 km Päijänne Tunnel which supplies the Helsinki region with water.