Bond Isaacson - Local VCs close $14M fourth round for BlueTarp

BlueTarp Inc., a provider of credit for building contractors, has closed on a $14 million fourth round of funding led by two local venture capital firms.
The company declined to say how much it has risen thus far, although a spokesman did say that today’s announcement represents the firm’s largest investment to date. Highland Capital Partners in Lexington and IDG Ventures in Boston led the Series D financing round.
Both firms gained seats on Bluetarp’s board of directors.
Founded five years ago in Portland, Maine, BlueTarp’s credit is accepted by 250 building-materials suppliers and is used by around 7,500 contractors. The company guarantees liquidity to participating vendors by paying down the expense accounts owed by BlueTarp contractors each month.
The firm uses a third-party lender to make each monthly payment, collecting a small fee — between 2 percent and 3 percent of each check — from suppliers in return. Materials vendors are issued BlueTarp nameplates, similar to the Mastercard or Visa stickers that adorn windows and doorways at many retail establishments, while contractors are given an identification card to present while making a purchase.
Bond Isaacson, BlueTarp’s chief executive officer, said the money will be used to expand the company’s services while also bringing its credit and administrative functions in-house. The company presently outsources both operations.
Bond Isaacson said the company also plans to open a new call center in Portland that will eventually employ over 100 customer-service workers. The company presently employs 12 people and expects to hire another 25 this year.
“We’re formalizing trade credit into true credit for the building industry,” said Bond Isaacson, who moved the company’s headquarters down to Charlotte, N.C., this month.
The company also plans to add a Web component to its services, whereby contractors can track purchases and more efficiently bill their customers.
BlueTarp’s credit is accepted nationwide, although the firm has focused most of its resources on the East Coast, Bond Isaacson said.

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