Construction companies seeking government contracts must meet subcontracting goals for underrepresented small businesses. This requirement applies to all contracts expected to exceed $1.5M under the Small Business Contracting Program. Tough Leaf is a platform that connects construction companies and contractors with qualified, vetted small and diverse businesses, ensuring compliance with these requirements. The platform streamlines the process with contractors, developers, owners, and government agencies sharing their requirements for each project and with the platform handling everything from matching and outreach to vetting and bid procurement. Tough Leaf has seen 3 bids per bid package on average from a pool of 200,000+ subcontractors and vendors that offer 100s of different types of certifications, expanding opportunities for both prime contractors and small businesses in the construction industry. Prime contractors pay an annual fee to access the platform based on usage while it’s completely free for subcontractors and suppliers.
AlleyWatch caught up with Tough Leaf CEO and Cofounder Wissam Akra to learn more about the business, the company’s strategic plans, latest round of funding, and much, much more…
Who were your investors and how much did you raise?
We are calling it an early venture round and we raised $4.5M from Reformation, AlleyCorp, and Stellifi.
Tell us about the product or service that Tough Leaf offers.
Tough Leaf enables contractors to meet their compliance requirements on construction projects by connecting them with small and diverse businesses.
What inspired the start of Tough Leaf?
I worked for multiple contractors, felt the pain point myself, and did not find a solution in the market
How is Tough Leaf different?
We use data to match small and diverse businesses to the right projects, getting 3 bids on average per bid package.
What market does Tough Leaf target and how big is it?
Construction: $2T market
What’s your business model?
We charge contractors a yearly fee depending on usage.
What are the biggest challenges that you faced while raising capital?
Finding the right investors that agree with us on the long-term vision of the company.
What factors about your business led your investors to write the check?
Growth, vision, industry need.
What are the milestones you plan to achieve in the next six months?
Grow the team and revenue.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
There is a lot of dry powder out there, build a compelling case and raise money.
Where do you see the company going now over the near term?
Our goal is to grow to new markets. So far we have been focused on the eastern US, and with this round we are looking to grow our presence on a national scale
What’s your favorite summer destination in and around the city?
I enjoy hanging out on the beaches of NY, whether for a day trip to Jones Beach or Long Beach or a weekend escape to Fire Island.
