Anwar Ghauche, CEO of Constrafor. Image Credits:<\/strong> Constrafor<\/p>\n<\/div>\n

When asked why Constrafor went after a SAFE note versus a priced round, Ghauche said he didn\u2019t think the market \u201cwas great today in terms of pricing.\u201d<\/p>\n

\u201cWe\u2019ve seen that deterioration in the multiples for fintech companies,\u201d Ghauche added. \u201cWe found that this is a much better way for us to keep growing, hence our milestones on the revenue side for the Series A, so we\u2019re targeting to cross $5 million ARR before we actually go for a Series A. If we can be at $10 million ARR, that will be better.\u201d<\/p>\n

In addition, the investment includes access to a credit facility with Apollo. That potential for additional capital gives Constrafor \u201cscalable credit and capital for our business,\u201d Ghauche said.<\/p>\n

And at a time when other financial players are increasing rates due to the difficult economic environment, Constrafor is able to lower its price to customers and pass on the savings to them, he added.<\/p>\n

Meanwhile, the new capital will be used for payroll and to fund operations. Ghauche intends to get its EarlyPay program rated and open up Constrafor\u2019s APIs to general contractor customers.<\/p>\n

\u201cWe\u2019re seeing quite a bit of construction startups coming up now, and we feel we have a pretty large network right now, so we want to open up our platform for these companies to connect to ours and build on top of Constrafor,\u201d Ghauche said.<\/p>\n<\/p><\/div>\n

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