We are thrilled to announce that CoFi has been recognized on the prestigious Inc. 5000 list for 2024, ranking #359 overall and standing out in the financial services sector. This achievement highlights our remarkable growth of 1204% between 2021 and 2023, a testament to our innovative approach and dedication to transforming the construction lending industry.
CoFi’s Journey as Software Innovator and Fintech Construction Lender
CoFi’s journey began with developing SaaS software designed to digitize construction loan draw submissions and payments, budget management, and lien waivers. This innovation aimed to streamline the cumbersome and highly manual paperwork process that often bogged down construction projects. Then, with the onset of the COVID-19 pandemic and its unique challenges, CoFi discovered that geo-located, time-stamped 3D camera images could effectively replace physical inspections. This technology allowed general contractors, owners, and banks to verify construction progress remotely. Incorporating digital inspection into CoFi’s processes offers significantly reduced payment delays from an industry average of 70 days to under five days. Today, CoFi can complete draw requests within one business day and release funds in under three business days.
In working closely with traditional lenders, CoFi also saw a need for some borrowers to obtain funding on projects that didn’t quite fit the requirements of larger financial institutions. As a result, CoFi pivoted to become a fintech construction lender and a tech-enabled, service provider. Though successful, this transition has not been without its challenges. CoFi needed back-leverage debt to fund its loans, which required the company to contribute to a portion of each loan. This requirement initially limited CoFi’s growth potential. However, CoFi’s proactive approach to securing sophisticated fintech investors has proved beneficial. Tenacity Ventures and Westerly-Winds were brought into CoFi’s Seed+ round. Tenacity Ventures has played a crucial role in sourcing the necessary back leverage. Westerly-Winds assisted in launching an equity and debt fund to cover CoFi’s share of each loan. This strategic move enabled CoFi to scale.
Scaling New Heights
CoFi’s innovative business model, which now supports two revenue streams, has allowed it to scale at an unprecedented rate. By funding directly and then selling its loans after one or two draws, CoFi can recycle capital into new loans, while maintaining service with the borrower. This approach enhances liquidity and positions CoFi to help more builders fund their projects. CoFi software and services continue to be available to other lenders looking to streamline their lending processes while supporting CoFi’s lending process.
The recognition by Inc. 5000 is a significant milestone for CoFi, underscoring our commitment to innovation and excellence in the construction and financial services industries. The Inc. 5000 list is renowned for identifying the most dynamic and successful privately held companies in the United States, and being part of this list places CoFi among an elite group of companies shaping the future of their respective industries.
Looking Ahead
As we celebrate this achievement, we remain focused on our mission to revolutionize construction lending by making it predictable, safe, and fast. Our journey has been marked by strategic pivots and innovative solutions, and we are excited about the opportunities that lie ahead.
We extend our heartfelt gratitude to our dedicated team, visionary investors, and loyal clients who have been instrumental in our success. Together, we are building a future where construction lending is seamless, efficient, and accessible.
Stay tuned for more exciting updates from CoFi as we continue to lead the way in construction finance innovation.
