Material Bank Announces Revenue Growth and Series B Funding
Despite economic disruptions around the globe, Material Bank‘s business remains more robust than ever. The brand announced today a spike in revenue growth and a $28 million Series B funding round led by Bain Capital Ventures. The funding will be used to accelerate expansion into new areas, with plans to build a new robotic logistics facility and further develop its Software as a Service model.
“Our mission is to remove the friction that exists when searching and sampling materials. Material Bank has almost doubled its member base within the last six months and is rapidly transforming the architecture and design industry,” said Adam I. Sandow, CEO and founder of SANDOW, who developed Material Bank’s proprietary platform to streamline and speed up the material searching and sampling process. “Our dramatic growth is a result of the changing demands of the industry and our ability to efficiently serve them. We’re thrilled to announce support from Bain Capital Ventures during this time of rapid expansion.”
Material Bank, which reduces the number of inbound packages to firms by over 70 percent—a major win for sustainability—has more than 35,000 approved members who rely on the platform to source materials for more than 75,000 construction and design projects, and counting. For Q1 2020, Material Bank recorded 45 percent quarter-on-quarter revenue growth—on track to grow revenue 200 percent and double its participating brands in 2020.
“Material Bank is a perfect fit with Bain Capital Ventures’ mission of investing in industry-leading B2B companies,” said Merritt Hummer, partner at Bain Capital Ventures. “We are excited about the potential of online marketplaces to transform the B2B commerce landscape, and Material Bank’s exponential growth over the past year shows they are very well positioned to become the dominant marketplace in the materials industry.”
This Series B round, which also included existing investors such as Raine Ventures and Barry Sternlicht, co-founder, chairman, and CEO of Starwood Capital Group, brings Material Bank’s total funding to date to $55 million. Merritt Hummer, partner at Bain Capital Ventures, and Jeff Sine, co-founder and partner at The Raine Group, will join Material Bank’s Board of Directors.