Tough Leaf operates a data-driven platform that connects contractors, developers, owners, and government agencies with qualified, vetted small and diverse businesses to satisfy subcontracting and diversity compliance on construction projects. The platform handles matching, outreach, vetting, and bid procurement, streamlining the process for prime contractors and small suppliers. Tough Leaf reports an average of three bids per bid package from a pool of 200,000+ subcontractors and vendors offering hundreds of different certifications. Prime contractors pay an annual usage-based fee for access while the platform is free for subcontractors and suppliers. The company targets the $2 trillion construction market and has been focused on the eastern U.S. to date. With the new funding, Tough Leaf plans to grow the team, increase revenue, and expand its presence nationally. Tough Leaf operates a mission-driven matching platform that uses machine learning and AI to connect general contractors and developers with qualified minority-, women-, veteran- and other disadvantaged business enterprises (MWDBEs). The company was founded in 2021 and is based in New York. Its platform has grown a database of over 90,000 diverse firms and, six months after closing its seed round, Tough Leaf reports having awarded more than $180 million in projects free of charge to diverse firms. Prior to the funding, the company focused primarily on the New York market; it now has projects in eight states and plans to expand to 28 states by the end of the year and to serve the entire United States by 2024. The seed financing has supported product development, headcount expansion, and building an expanded sales team as Tough Leaf pushes into new markets.

Total raised

$8M

Funding rounds

2

Latest round

Equity

Latest activity

Jul 2024