Last Week in ConTech - 10 June 2024
Global manufacturing construction tailwinds + Vertical taxi infrastructure investments
Last Week in ConTech is a summary of the most important startup funding, news, policy changes and national project investments in the last 7 days. The goal is to provide decision makers with information on technology solutions and macro-economic trends in construction to help drive innovation in the industry.
In this issue there are:
16 Startup Fundings
6 Policy and Regulatory Changes
8 New National Infrastructure Projects & Priorities
0 New investment funds
2 Acquisitions
11 News articles
Reading time: 15 mins
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Startup Fundings
Procurement
Field Materials, a Californian startup, raised $3.5m in seed extension funding. They provide an AI procurement platform for contractors to control and verify construction material and equipment spending including streamlining process and eliminating manual data entry. More here.
[Hiring - 3 roles in Sales, 4 roles in Software, 1 role in Design, 1 role in Support]
Labor / Talent
Crafthunt, a German startup, raised €3m in funding. They provide a specialized recruitment company for the construction industry which enables the rapid procurement and coordination of skilled workers by using a matching algorithm to offer jobs to candidates with the required skills and experiences. More here.
[Hiring - 1 role in Sales, 1 role in Software, 1 role in Marketing, 1 role in Operations]
Project Management
Plancraft, a German startup, raised €12m in Series A funding. They offer a software solution for digitizing work processes in the craft industry, including invoicing, pricing, construction site documentation, and time tracking. More here.
[Hiring - 1 role in Finance, 2 roles in Support, 3 roles in Marketing, 1 role in Operations, 2 roles in Software, 1 role in Product, 1 role in Design, 2 roles in Sales]
Materials
ecoLocked, a Berlin startup, raised €3.9m in seed funding. They develop carbon negative building materials which permanently store carbon in the built environment. Their first product line eLM Zero is an admix material enabling carbon neutral concrete. More here.
[Hiring - 2 roles in Sales, 1 role in HR]
Notes:
ecoLocked offers a ‘mix design and technical consulting’ service.
The service is likely used as lead generation and customer support as they use it to assess the requirements for a project and provide an optimized concrete mix design which uses their products.
This allows them to be included in the technical specifications which is an important consideration for sustainable material startups.
To sell their new material to the industry, they need to be included by architects and engineers in the design who may not be familiar with their new material.
By offering a done for you consulting or calculation service, it ensures they are included in the design / specification leading to the adoption and purchase of their products in the construction phase.
Reibus International, an Atalnta startup, raised $30m in funding. They have developed a platform for buying and selling of industrial materials including providing end to end services including logistics and financing. More here.
Notes:
Their solution simplifies the B2B procurement process by offering real time data, analytics and logistics support.
Alternative Energy Systems
Verne, a San Francisco startup received funding (undisclosed). They provide high density hydrogen storage and compression solutions which are used to decarbonize heavy duty transportation without disrupting existing operations. More here.
Notes:
This funding came from the U.S. Army Energy Demand Reduction and Clean Energy Tech SBIR program.
The US military is the largest consumer of oil in the world and is focusing on decarbonizing their operations.
As part of the funding, Verne will explore how their solution can be used to decarbonize medium and heavy-duty vehicles which are used in US Army operations.
The army sees value as it could lead to great range and payload enhancing their operational capabilities.
If this solution has value, it can be applied to the construction sector specifically for decarbonizing heavy construction equipment.
Offsite Manufacturing
Dataform Lab, a UK startup, raised £1.1m in Seed funding. Their platform helps offsite construction manufacturers to create, simulate and compare automated production line designs and is utilized by manufacturers of 3D and 2D timber and steel systems to complete housing, commercial, educational, and hospitality projects. More here.
Transport
Spare, a Canadian startup, raised $10m in growth funding. Their solution helps transit agencies launch on demand services and modernize specialized (paratransit) transit systems. More here.
Notes:
Paratransit systems are a type of transportation services that supplement fixed-route mass transit by providing individualized rides without fixed routes or timetables.
Electric Vehicle Infrastructure / Decarbonization
Gireve, a Parisian startup, raised €20m in funding. They provide a B2B platform for EV charging connecting mobility stakeholders to charging stations worldwide facilitating contracting, invoicing, and data exchange. More here.
[Hiring - 1 role in Product, 1 role in Marketing, 1 role in Software, 3 roles in Other]
Decade Energy, a Parisian startup, raised €3.6m in seed funding. They are a logistics electrification and energy management service provider helping commercial fleets to decarbonize. More here.
Notes:
The company partners with commercial fleet providers and logistics companies to understand their operations and create a transition plan.
They then select the right energy and charging infrastructure, manage the installation and negotiating of their subscriptions including optimization of their energy consumption.
In a way they are an engineering company that works through the full lifecycle of a project as an Owner’s rep reviewing and identifying the optimal energy and charging infrastructure, managing contractors and construction processes.
Renewable Energy Infrastructure
Samara, a Spanish startup, raised €9m in Series A funding. They install solar panels for homeowners. More here.
[Hiring - 1 roles in Sales, 1 role in HR, 1 role in Construction, 1 role in Operations, 1 role in HR]
Notes:
Samara have built a proprietary offer builder for homeowners which ingests basic information to provide a preliminary quote and savings estimate.
When homeowners move forward, Samara handles permitting, procurement and project management with its team of project managers and electrical engineers.
To expand their footprint they have both an in-house team of installers and a marketplace of third party partners who provide flexible capacity for delivery.
This model is an example of the cloud installer model which is becoming more popular in the clean tech / installation of the renewable energy and retrofits sector.
Building Decarbonization
Aira, a Swedish startup, raised €86m. They sell heat pumps and home energy technology to consumers. More here.
Prêts, a Dutch startup, raised €1m in funding. They provide financing solutions for homeowners to make sustainable home improvements ensuring that energy efficient upgrades do not increase homeowners monthly energy bills ensuring financial stability. More here.
Notes:
Their solution helps homeowners to use their energy bill savings as investment capital for energy-efficient home improvements.
It is needed as cost is a barrier to decarbonization of the residential sector.
This solution helps to support energetic retrofits to meet emission targets.
To meet decarbonization goals, energetic retrofits are required for residential housing.
Power Grid
Eneryield, a Swedish startup, raised seed funding (undisclosed). They provide fault forecasting and identification for grid systems helping to prevent power outages and improve maintenance planning for utility and industrial customers. More here.
[Hiring - 1 role in Marketing]
Other
Yondr, a Dutch startup, raised $150m in debt funding. They develop and operate hyperscale data centers with the funding being used to develop a major data center in Malaysia. More here.
[Hiring - 1 role in Sales, 4 roles in Finance, 7 roles in Operations, 6 in Construction, 1 in Project Management, 2 roles in Software]
Consor, a New York startup, received growth investment (undisclosed). They provide transportation and water infrastructure and consulting services. More here.
Policy and Regulatory Changes
DOE releases zero-emissions building definition, part 1
The US Department of Energy released the first part of a national definition for a zero-emissions building.
The intent to provide guidance that will support decarbonization efforts in new and existing buildings and advance public- and private-sector climate goals.
Part 1 of the definition focuses on operational emissions from energy use, setting criteria to determine whether a building generates zero emissions from energy used in building operations.
At a minimum, a building that achieves zero operational emissions from energy use meets the following criteria:
Energy Efficient
The building is among the most efficient.Free of on-site emissions from energy use
The building’s direct GHG emissions from energy use equal zero.Powered solely from clean energy
All the energy used by the building, both on-site and off-site, is from clean energy sources.
$1.3B earmarked for EV charging network expansion in US
The funding is to support the expansion of electric vehicle charging infrastructure across the U.S. in urban and rural communities and along designated highways, interstates and major roadways.
Two cities win Lime competition for help with safe streets planning
Lime will provide Washington, D.C., and Bloomington, Indiana with expertise in planning for safer streets.
They will provide their detailed trip data and safety analytics to each city to inform projects.
Notes:
Micromobility companies have information about bikes, pedestrians and scooters that no one else has.
It is unclear how they will be able to monetize this data however there is a need and demand for it amongst municipalities.
As a side note - there is an opportunity to build ancillary businesses based on data captured by companies through their regular activities that they don't know how to monetize.
An example of this is a commercial real estate insights company that:
Ingests OpenTable restaurant reservation data to identify investment opportunities.
Uses high reservation data to indicate high foot traffic, suggesting opportunities to raise rents or renovate properties.
OpenTable captures this data as part of Business as Usual but is not able to / willing to build the ancillary business (it is a distraction).
Similar opportunities exist in construction, as we now capture more data that could be easily shared via API access.
China Picks First 15 Cities for Urban Renewal Grants
The finance ministry has provided a list of 15 cities to receive financial support as part of the country's new urban infrastructure renewal policy.
The cities will receive CNY800 million to CNY1.2 billion (USD110.5 million to USD165.7 million) in grants.
The funds will go to renewing and renovating underground pipe networks, building model areas for city-wide sewage pipe networks, shoring up weak links in municipal infrastructure, and renewing and renovating old districts.
New retrofit playbook offers road map for building emission reductions
A free online resource to help decarbonization has been released (focused on New York).
The Retrofit Playbook provides assessment tools, technical guides, best practices, educational materials and case studies of more than 10 buildings.
Notes:
These playbooks are increasingly important in defining decarbonization strategies to supply policy measures such as Local Law 97 which requires New York buildings over 25,000 square feet to cut 40% of carbon emissions by 2030.
Congress to Fund U.S. Deep-Sea Mining Project
The Department of Defense will explore whether it is possible to refine deep sea minerals in the US.
This is over concerns of China’s control of key minerals that are required for the energy-transition technologies and defense applications.
Notes:
Deep sea mining is controversial even within the mining industry.
Congress discussion on the topic highlights the supply chain threat they see with China.
It is an indication of a strong desire to spur domestic refining capability and could lead to increasing investment in mineral processing and refinery construction.
National Infrastructure Projects & Priorities
Europe
Airbus, BMW to Grab Share of €1.4 Billion Hydrogen Aid in Europe
State aid is being provided for hydrogen power initiatives.
The plan dubbed ‘Important Project of Common European Interest’ is expected to unlock an additional 3.3 billion euros in private investments.
Notes:
There is an uptick in investment / grants for hydrogen projects.
This appears due to the strain electrification is placing on the electrical grid.
We do not have the infrastructure, components or regulatory mechanisms (i.e expedited planning permits) to supply enough energy to meet the forecasted demand.
Hydrogen is becoming a priority alternative green fuel source with countries seeking to be incorporated as part of the global fuel supply chain.
China
China's Guangzhou to invest $1.4bn in flying car infrastructure
The funding will be used to build infrastructure for flying vehicles.
It will include over 100 takeoff and landing points.
A general aviation aerodrome, with a runway shorter than those at civil airports, is also planned.
New BYD Hybrid Can Drive Non-Stop for More Than 2,000 Kilometers
BYD has unveiled a new powertrain which will allow electric vehicles to drive from New York to Miami on one charge.
It will be launched immediately in two sedans costing under 100,000 yuan ($13,800).
Notes:
BYD’s ability to innovate in electric vehicle technology has implications for electric charging infrastructure.
The increased range of BYD vehicles will reduce the need for the deployment of charging infrastructure in the long term.
Additionally, no US car company is able to compete with BYD’s pricing and as a result, Biden has imposed 100% tariffs on electric vehicles, with the EU expected to follow suit.
This move will likely lead to an expansion in government funding for local car companies in an effort to compete, which could be a tailwind for the manufacturing construction sector.
Related:
Japan
World’s Largest Nuclear Plant Sits Idle While Energy Needs Soar (Japan)
Prior to the 2011 meltdown, Japan had a strategy to increase atomic power to 50% of the energy mix by 2030.
Right now that output — enough to power more than 13 million households — is zero.
Japan spent 27 trillion yen ($172 billion) importing fossil fuels for energy.
Due to rising energy needs from a nascent semiconductor industry and AI data centers, they are considering opening the plant.
Notes:
Japan's discussion on nuclear energy is emblematic of a global discussion due to shortages in power availability and could lead to policy changes
The International Atomic Energy Agency forecasts nuclear capacity could rise 24% by 2030 and 140% by 2050 from 2022 levels.
15 countries are building new reactions with China having 24 under development.
Saudi Arabia is in discussion with the US to build out its civilian nuclear program.
Nuclear energy infrastructure is likely to be a future construction growth area.
India
India's Modi plans post-election reforms to rival Chinese manufacturing
As part of an election pledge to make India into a global manufacturing hub, Modi wants to offer subsidies for domestic production.
This will be modeled on packages for semiconductor firms and electric vehicle makers.
They plan to reduce import taxes on key inputs for locally-made goods.
Less than 3% of global manufacturing occurs in India vs 24% in China.
The government plans to increase India's share of global manufacturing to 5% by 2030 and 10% by 2047.
Notes:
India is strategically positioning itself to ‘win’ from increased global competition between China and the West.
They are building the ‘Dholera Special Investment Region (DSIR)’ modeled on China's Special economic zones setup in the 80s which are credited for their dominance in manufacturing.
Currently the US, EU and India are increasing investment in growing domestic manufacturing capability (and construction).
Central Asia
EU promises to allocate €10 billion for transportation development in Central Asia
The EU will invest in the development of the Trans-Caspian International Route (TITR).
The TITR stretches through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, Turkey and European countries.
Central Asian states need €18.5 billion to implement 33 infrastructure projects which will increase the potential of the TITR from the current six million tons to 26 million tons by 2040.
Africa (Ethiopia, Djibouti and Kenya)
China hands over the keys to the railway as African countries take control of 2 major belt and road projects
The Addis Ababa-Djibouti Railway and the Mombasa-Nairobi Standard Gauge Railway have been handed over from Chinese operators.
As part of this they are training thousands of local workers, passing on skills and knowledge in the running and maintenance of the infrastructure.
This is part of their ‘localisation strategy’ to win further infrastructure projects to promote their development model.
Notes:
Infrastructure development is a key part of global diplomacy and opening up foreign markets.
For China this model could become increasingly important as they are being shut out of key Western markets (e.g tariffs on Chinese goods by the US).
Furthermore it is a key revenue and capability generator for Chinese construction firms.
Microsoft and G42 Announce USD 1 Billion Digital Ecosystem Initiative for Kenya
Part of the funding will be used to construct a state of the art green data center to host Microsoft Azure services.
Finland
Google invests 1 billion euros in Finnish data centre to drive AI growth
The investment will drive AI business growth in Europe.
Data centers are being located in the Nordic countries because of the region's cooler climate, tax breaks and availability of renewable power.
Notes:
AI data center deployment is a key business priority for Big Tech.
However it is impacting their emissions making it more difficult for them to meet their targets.
This tension between growth, profitability and emissions (a negative externality) will rise in the next couple of years.
Malaysia
Google plans US$2 billion cloud hub and data centre investment in Malaysia
This will be their first data center in the country.
They will become the twelfth country to house a Google data center.
Notes:
Malaysia is aiming to become a regional digital hub.
They are targeting an estimated US$107 billion investment for its semiconductor industry.
Last month, Microsoft announced US$2.2 billion over the next four years in new cloud and AI infrastructure in the country.
There is an opportunity to offer construction services and solutions to this emerging industry.
Acquisitions
Ferguson, a North American distributor of building materials announced the close of four acquisitions:
Southwest Geo Solutions: An Austin full-service distributor of erosion control, containment, geotextile and geogrid products.
AVCO Supply: A Pennsylvania distributor of boilers and hot water heaters and offers design and specification services to both commercial and residential contractors.
GAR Engineering: A North Carolina fire protection engineering service and design firm.
Safe Step Tubs of Minnesota: An independent dealer licensed to sell and install Safe Step walk-in tubs and showers in the Midwest, serving the growing senior/aging-in-place market.
More here.
Notes:
This brings Ferguson’s total acquisitions to 8 over the last 11 months with aggregate revenues of ~$350m.
Over the past 5 years they have completed over 50 acquisitions.
Nemetschek Group, a German company providing software solutions for the AEC and media industries is acquiring GoCanvas Holdings, a Reston, VA-based provider of field worker collaboration software. More here.
Notes:
GoCanvas further strengthens Nemetschek Group’s positioning in the US while Nemetschek will provide GoCanvas the footprint to expand in Europe and Asia-Pacific.
Schneider Electric ends deal talks with Bentley Systems
The deal fell apart as an agreement could not be reached on where the Bentley family could maintain sufficient control or value in a combined company.
News
Constructing a Better Built World (Building Ventures)
Oklo to supply 100MW of nuclear power to Wyoming Hyperscale
Oklo is a small modular reactor nuclear power startup.
They have signed a non-binding letter of intent outline plans for a Power Purchase Agreement (PPA) for 10 years.
Notes:
Oklo continues to win PPA’s from data center providers after recently securing a deal with REIT.
Due to rising energy demands, countries are focusing data centers to secure renewable energy capacity before providing permits.
Small Modular Reactors are seen as a viable alternative as they provide consistent clean energy.
They can also be deployed for large industrial plants.
Given the rising demands for energy, it will be interesting to see which nuclear startups wins and where the pain points are. For example is the pain point:
The development of novel reactor technology.
The delivery and construction of nuclear power plants (and will these be built by startups with in-house teams or contractors).
Thesis: Warehousing for Construction? (Patric Hellerman)
Where did the idea for OpenSpace come from?
UK breakthrough could slash emissions from cement
Scientists say they've found a way to recycle cement from demolished concrete buildings.
Black & Veatch, an Overland Park, KS-based engineering, procurement, consulting and construction company, has selected six startups to participate in its BV IgniteX Carbon Dioxide Removal (CDR) Accelerator. More here.
Tracking the Inflation Reduction Act’s impact on US manufacturing
The database tracks major IRA-linked investments for projects in electric vehicles, solar etc. on a monthly basis.
305 new large-scale, new clean energy projects announced since August 2022.
$123.1B in total capital investments have been made in clean energy projects.
US clean energy investment reaches record quarterly high of $71B: report
This is in contrast to the first quarter of 2023 which had $51b in new investments.
The entire year of 2018 had $78b in investments.
Officials push to turn office buildings into housing amid home shortage, remote-work boom
The U.S. is facing a years-long affordable housing shortage and record-high office vacancies.
Elected officials are pushing to speed up the conversion of commercial buildings into housing to address both issues.
Regulations and architectural challenges can make such conversions an arduous process.
A Catalogue of Everything Thesis Driven
Over 150 deep dives into real estate, technology, and cities.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.