RigUp, an Austin, Texas-based energy industry’s marketplace for on-demand services and labor, raised a $15.8m Series B funding. Backers included Quantum Energy Partners and Global Reserve Group, Founders Fund and other existing investors. The company, which has also secured a $30m credit facility from Silicon Valley Bank, intends to use the capital to strengthen its product with enhanced mobile features and streamlined payment solutions and to continue to build the product and sales teams. Led by CEO and co-founder Xuan Yong, RigUp has leveraged its proprietary software to build a digital platform where buyers and service providers can connect and transact on a full range of oil field services. Its oilfield network platform enables buyers across the United States to streamline transactions and scale on demand by providing them access to 22,000+ service providers across 100+ service categories.
RigUp’s Oil-Well Service Gets $15 Million Despite Oil Price Dip
During the short existence of startup RigUp Inc., the oil and gas industry it serves turned on its head. When the startup started testing its online marketplace for oil-rig projects in 2014 the price for a barrel of crude hovered around $100, oil rigs were multiplying around the country and exploration companies were making profits. Since then, the price per barrel sank to around $40 and the number of oil rigs dropped some 75%, to the lowest level since at least 1949, according to data from WTRG Economics.
RigUp Drills for $3M From Founders Fund, Others for Oil Rig Logistics Tech
RigUp Inc., an early-stage startup founded by a former Google software engineer and an ex-energy commodities investor, closed on $3 million in a seed round, as VentureWire reported this morning, to create a software platform for oil rig logistics. Founders Fund led the round, with Partner Geoff Lewis, who is on the boards of Lyft and other companies, being responsible for the deal. New York-based firm Great Oaks VC participated, along with BoxGroup, an early-stage New York-based fund managed by David Tisch and Adam Rothenberg. Several individuals also participated in the equity round. RigUp has its headquarters in Austin, Texas.