TOOLBX (www.toolbx.com)

HQ: Toronto, Canada

The team: Erik Bornstein, Mark Hinnen, Chris Stringer (co-founders)

The problem:

For builders and general contractors, material procurement and order management processes are fragmented and time-consuming, which makes it difficult to complete work on time and on budget. Brick and mortar suppliers (like lumberyards and material providers) have traditionally struggled to roll out e-commerce capabilities, and construction professionals are seeking more efficiencies to manage material procurement. With 15+ years experience in the industry, TOOLBX CEO and co-founder, Erik Bornstein, knows the frustration of having to pull a crew member off the job to go purchase materials, and how time-consuming the order process can be. These interruptions result in expensive and frustrating job delays for builders and their clients.

Meet TOOLBX:

Launched in 2018, TOOLBX is a construction materials platform that connects general contractors and construction professionals directly to suppliers and logistics providers, and helps manage orders and timelines in one place. The built-in marketplace makes procurement easy, and helps maximize productivity and efficiency by ensuring crews have everything they need to get the job done. Initially started as a way to reduce labor inefficiencies caused by unscheduled supply runs, TOOLBX is a two-sided marketplace that services both contractors and suppliers. Recently, they’ve added storefronts with e-commerce functionality for suppliers to easily go digital.

Why we’re betting on it:  

Slowing projects down causes pricey (and frustrating!) delays for builders and their clients. There’s a huge area for disruption on both sides, so that material procurement becomes less of a time and money pit for all. But it comes down to the numbers. The construction materials market is enormous — a $450B highly-fragmented industry, where less than 10% of spend is done online.  TOOLBX is enabling construction professionals to build faster, smarter and more efficiently with their innovative tools.

Over the last two years, TOOLBX has built out their robust digital platform for efficient material purchasing and delivery. Builders, contractors, and trades have quickly caught on, and the company has over 40k orders for over 1,000 customers, as well as secured partnerships with major retailers like Lowe’s.

From their first pitch, we noticed grit, resourcefulness, and a unique POV on a new-to-us market. Erik, Mark and Chris are exactly the type of founders we like to support, with unmatched passion and vision to go after a massive opportunity. How do they understand their core customer? They’ve been in their construction boots, having previously founded and exited two successful building and development companies.

TOOLBX is scaling quickly. Currently, it serves the greater Toronto-area, and it will be entering additional markets across Canada later this year with an expected US launch in 2021.

Our take:

TOOLBX’s can become a one-stop-shop for construction professionals needing materials and supplies. Investing in a category-defining product (think “The OS for Construction Material Procurement”) will enable both construction professionals and suppliers to easily manage their materials — and each step of their build.

As the rest of the economy has digitized, the construction materials market has been left behind. TOOLBX can lead the industry into the digital age and continue to innovate and lead the way in serving the evolving needs of the modern builder and supplier.