Frank

Renovation Software for Contractors

Join CrowdabilityIQ to access our premium risk and value analysis for this deal.

Company Information

Website:

https://www.frank-app.com/investors

Sector:

Construction

Location:

Los Angeles, CA

Frank is a construction-technology platform.

Its software-as-a-service (SaaS) enables contractors to estimate renovation projects on-site, with their clients, in minutes. In doing so, contractors can efficiently assess the cost and timeline of a project, while homeowners can create a clear picture of what they want to have done.

In the U.S. alone, there are more than 650,000 contractors specializing in home remodels. This represents a $450 billion market opportunity.

The problem is that contractors waste countless hours estimating potential projects. Often, they can’t determine which clients are serious about renovations. And they lose out on projects because they take too long submitting bids.

Recently, contractors have begun relying on software platforms to improve the renovation assessment process. But most platforms cater to large scale commercial projects. The few that do focus on residential homes use only basic tools and don’t work on-site.

Despite these limitations, the “construction tech” industry has experienced a wave of M&A activity. For example:

• In April 2018, Trimble (Nasdaq: TRMB), a software company for the building & construction industry, acquired Viewpoint, a construction management platform, for $1.2 billion.

• Later that year, Autodesk (Nasdaq: ADSK), a construction software company, acquired PlanGrid, a smaller competitor, for $857 million. It then acquired BuildingConnected, a construction bid management platform, for $275 million.

• And in 2019, Procore, a provider of construction management software, acquired Honest Buildings, a project management tool for developers, for $161 million.

Across the industry, recent acquisition prices in construction tech have gone for as much as 8x the revenues of the company being acquired.

As mentioned, Frank acts as smart remodeling software that supercharges the estimating process. It enables contractors to generate detailed remodeling estimates automatically and in minutes.

With this proprietary software, a contractor could provide a homeowner with an estimate for a new kitchen — complete with new countertops, kitchen cabinets, and appliances. Homeowners get an immediate sense of the total cost and timeline of the project.

Furthermore, if a homeowner has just $10,000 to spend, the contractor can put together a plan that can be done on budget.

Frank cuts the time needed to complete a kitchen and/or bath remodel estimate from an average of 6 hours to just 1 hour. In addition, its platform:

• Enables contractors to weed out clients with unrealistic budgets before putting in the time to create a full estimate.

• Speeds up the submission process for project bids — a vital factor for winning jobs.

• And produces clear, polished documents, giving the process a professional touch.

Frank offers its SaaS through $199 monthly subscriptions. Customers can add users for $20 per month per user.

In addition, Frank generates revenue by:

• Charging transaction fees on in-app project invoices (.5% of the job total per invoice).

• Taking a 5% commission on appliances, fixtures, and materials that contractors sell to homeowners in the app.

• And allowing homeowners to generate their own “ballpark” estimates using project questionnaires and selling those leads to qualified contractors in its network.

Frank has relationships with the National Association of Home Builders and BKBG, the largest kitchen and bath buying group in North America. It will use these relationships to market its platform. The company will also rely on free trials, referrals, and online marketing to spread the word about its platform.

Frank has raised $300,000 in pre-seed funding, and attracted hundreds of contractors to sign up for its platform. The company will use funds from this round to launch the first version of its software. It projects to bring in $1.1 million in revenue in 2021 and $9 million next year.

Team Background

Zachary Schlossberg - Chief Executive Officer

Zachary is a former renovation contractor turned software designer.

Prior to starting Frank, he was a design strategy consultant, as well as a strategic designer with BCG Digital Ventures, a design business. Before that, he was a lead industrial designer with Walt Disney Imagineering.

Earlier, he was a design instructor at the Art Center College of Design in Pasadena, California. Prior to that, he co-founded The Loftmen, a high-end furniture design company.

Zachary earned a Bachelor’s degree from The Cooper Union for the Advancement of Science and Art and an MBA from Claremont Graduate University. He also obtained a Master’s in Industrial and Product Design from ArtCenter College of Design.

Dennis Ketcham - Head of Sales

Dennis has more than 20 years of sales and contracting experience.

Prior to joining Frank, he founded two successful contracting companies, The Remodel Showroom and Ketcham Estate Management. He also spent time as a realtor with Town & Country Real Estate, and an operations consultant with FD Building Company, a general contractor.

He earned an Associate’s degree in Business Administration from Hudson Valley Community College.

Zach Buchman - Head of Product

Zach was a senior researcher at Procore, one of the world’s most widely-used construction software tools.

He earned a Bachelor’s degree in Political Science from Stanford University and an MBA from Claremont Graduate University. He also earned a Master’s degree in Industrial Design from ArtCenter College of Design.

Raising
$1.07 million
Committed
$96K (9%)
Current Valuation
$10 million Cap / 0% Discount
Min. Investment
$100
Deal Type
Title III
(For all investors)
Offering Type
SAFE
Finance History
  • $309K
    2021-03-01
    Unknown
    (Priced Round)
Learn more on WeFunder