Portfolio November 10, 2015

Our Investment in Rhumbix


Several months ago I was catching up with a friend who was an executive at AutoDesk and we were discussing the use of technology by the construction industry. Construction as a vertical isn’t well known for its use of technology but my friend commented, “You know what the first thing that is installed in construction sites now? Wi-Fi.” Like every other vertical market, construction is being transformed by technology: they are using GPS to heavy equipment, drones to measure daily progress, and cloud applications to share building plans.”

The construction industry is currently the second largest industry in the world. It represents a $10.5T market and will only continue to grow but many of the processes behind this giant market are still relying on legacy technology (like paper and pencils!) to manage multi-million and billion dollar projects. This is where the magic of Rhumbix comes in.

Unlike current construction technologies, Rhumbix is taking a completely different approach by building mobile tools for every stakeholder on a project, with a heavy focus on the field workers who make up the majority of the workforce. As smartphone penetration continues to saturate the construction workforce, Rhumbix turns this portable computer into a cloud connected productivity tool. Rhumbix captures real-time location data generated by smartphones and uses this data to increase workforce productivity and safety. This will not only save money for project developers and managers, but close the gap between the workforce and the home office to create safer job sites and optimize labor performance.

Zach and Drew are the perfect co-founders for a company that will disrupt the construction vertical. Zach and Drew were in the Navy — Zach as a Civil Engineer Corps Officer and Drew as a Nuclear Submarine Officer — and worked with major construction organizations, including Bechtel and Valhalla Energia. They met at Stanford Business School and reconnected in Chile after both working major construction projects. After venting their frustrations on the current state of the construction industry over a couple of beers, they decided that they wanted to bring the type of cutting edge technologies solutions they had worked with in the military to large scale commercial construction projects.

Today, we’re excited to announce that Greylock is leading the Series A financing round and Rhumbix is opening its beta program to new customers. At Greylock, we are always looking for transformative, category-defining companies and, today, Rhumbix joins a distinguished list of enterprise companies including Docker, Cloudera, Palo Alto Networks, Pure Storage, AppDymanics and Workday.

Rhumbix is tackling one of the largest industries that is in desperate need of innovation. We look forward to seeing these two founders build a company that will solve inefficiencies, create safe working environments and boost productivity for the entire workforce.

Welcome Zach, Drew and the rest of the Rhumbix team to the Greylock family.