Last Week in ConTech - 10 March 2025
Will the Trump Administration kill construction robotics?
Deep Insight: Will the Trump Administration kill construction robotics?
A few weeks ago we broke down how Big Tech’s data centre spending spree was driving construction robotics adoption.
The reason why is that to meet climate targets, they are supporting clean energy projects to provide dedicated load for their AI data centres.
Of the clean energy options available, solar is the most feasible today and due to labor constraints and the repeatability of solar layout, it’s an ideal beachhead for construction robotics.
This calculation however may have changed.
The new Trump Administration, while being supportive of energy permitting reform, has reversed course on climate pledges. This, in turn, could impact clean energy investment decisions and the feasibility of construction robotics.
What we are seeing is that there is rising non-market risk for the ConTech industry. It’s a facet that founders, investors and industry professionals must be aware of.
And to meet this need Alice Leung (Brick & Mortar Ventures) and I are testing a semiweekly ConTech News podcast for the next 3 months in conjunction with the Formwork Labs program.
Each week we will have a guest from industry and break down 2 or 3 of the top construction stories or trends featured on the newsletter and contextualise it to the construction tech industry.
This week we had Zach Sheel (Co-founder, Rhumbix; prev. Bechtel) and debated:
Is the AI data center boom an opportunity or risk for ConTech startups?
The rise of policy risk and how startups and investors are mitigating it
Why the Autodesk layoffs happened
And will horizontal AI models, when contextualized for construction, replace the need for construction-specific AI?
It’s easily my favourite podcast style to date as each of us has a different background on the industry (Zach - founder / contractor, Alice - investor / contractor and me - designer) resulting in heated opinions. More than that, we all found it fun.
Check it out on Spotify (link here) and Youtube (link here) and let me know if you have any ideas or topics you’d love to hear debated.
In this issue there are:
15 Startup Fundings
11 Policy and Regulatory Changes
8 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
7 News articles
56 new jobs posted - view here
Reading time: 13 mins
Does the email get cut off by your reading application? You can view the full version online here.
Startup Funding
Environmental Reporting
Kvist, a Norwegian startup, raised €1.3m in funding. They are developing a solution to help construction and real estate companies report on sustainability making it easier to ensure alignment with regulation such as the EU taxonomy and to assist with green building certifications. More here.
AI
Howie Systems, an Austrian startup, raised €600k in funding. They are building an AI copilot platform to connect construction and real estate data such as text, images and construction drawings to streamline project coordination and process automation by offering services such as a knowledge base chatbot. More here.
TwinKnowledge, a New York startup, raised $3.7m in funding. They are developing an AI copilot and knowledge platform for AEC offering the ability to easily create copilots based on your knowledge bases by integrating with common industry platforms such Procore and Autodesk. More here.
[View open jobs - 1 role in Sales]
Trades Management
Installer, a Norwegian startup, raised $4m in Seed funding. They have developed a solution which matches installers of green solutions such as EV chargers, solar panels and heat pumps with jobs. More here.
Notes:
A critical gap in the deployment of new green technology such as heat pumps for building decarbonization is the availability of skilled workers.
For example, in Germany, estimates suggest that the energy transition requires 350,000 additional skilled workers in Germany by 2030.
This shortage has led to a rise in funding for startups such as La Solive (France), Smalt and Montamo (Germany) which use a training bootcamp model to train clean energy installers to either help external companies source workers or to hire-train-deploy for their own work.
Safety
Notify Technologies, a UK startup, raised £1.5m in funding. They are building a safety platform which enables businesses to record accidents and near misses, complete audits, inspections and risk assessments as well as manage safety documents and analyse safety data with construction listed as one of the industries they serve. More here.
[View open jobs - 1 role in Customer Success]
Data
Mode, a Californian startup, raised $5.3m in funding. They are building an AI driven data management platform for the physical world empowering business in building management, construction and manufacturing with real time monitoring and insights. More here.
Design
Strato Create, a Lithuanian startup, raised €167.4k in Bridge funding. They are building a cloud platform to streamline home design, providing real time pricing and 3D visualization allowing architects to input variables such as site dimensions, client preferences and building regulations and receive multiple design options. More here.
Home Services
Daisy, a Californian startup, raised $15M in Series C funding. They install smart home and office solutions such as audio visual, lighting, shades and security designs, partnering with builders, architects and designers to ensure that, if required, custom fitouts can be provided. More here.
[View open jobs - 2 roles in Marketing, 1 role in Sales, 1 role in Operations, 1 role in Project Management]
Notes:
Daisy appears to operate as an expert subcontractor for smart home design and installation.
They collaborate with architects early in the design phase, offering expertise on the feasibility of smart home technology.
Once the solution is designed and specified, they are well-positioned to secure the installation work as a subcontractor to the builder.
This strategy—getting specified for a unique solution and then self-performing installation—is similar to the go-to-market approach used by new green materials.
Inspections & Monitoring
Zeitview, a Los Angeles startup, raised $60m in funding. They develop inspection software and use drones and manned aircraft to inspect critical infrastructure such as solar farms and wind turbines as well as offering construction progress monitoring services. More here.
[View open jobs - 5 roles in Operations, 1 role in HR, 1 role in Software]
Fleet Management
Viam, a New York startup, raised $30m in Series C funding. They allow companies to apply AI to real time data from robots, sensors, equipment and industrial machines located in the physical world. More here.
Notes:
This solution is not construction specific however it has applications to the construction industry.
One of these use cases, Fleet Management, is used to easily monitor large machines or asset fleets including remote diagnostics and providing seamless updates to maximize uptime.
Construction vehicles are listed as an application with their solution being used to monitor excavators, loaders, and other heavy machinery in real time, even in low-connectivity environments.
It assists with fuel consumption and diagnostics ensure operation.
Climate and Environmental Risk Monitoring
Telescope, a Norwegian startup, raised €3.7m in Seed funding. They have developed a solution to help owners manage sustainability risks across their asset portfolio. By entering an address, owners can identify physical climate risks (e.g. flooding, fire), biodiversity risk (e.g will new construction affect protected species) and can create transition plans to reduce the environmental impact of their buildings. More here.
[View open jobs - 2 roles in Software, 1 role in Data]
Ocean Ledger, a London startup, raised $900k in Pre-Seed funding. They are developing a geospatial analytics solution which is able to forecast coastal erosion risk scenarios & solutions that is used by stakeholders such engineering firms and municipalities for climate adaptation projects and to safely build new structures. More here.
Notes:
This solution is valuable for scenario planning and developing designs to improve the climate resilience of infrastructure and buildings.
Grid Tech
VIE Technologies, a Californian startup, raised $15m in Series A funding. They have developed an energy transformer monitoring solution which is able to detect equipment issues early and recommend repairs to increase the reliability of grid infrastructure. More here.
Notes:
Electrification, combined with increased AI related data centre energy loads, is resulting in increased demand for electricity.
This is creating a challenge in terms of grid infrastructure and we are facing a critical shortage in transformers with lead times at over 3 years for large units.
To overcome this, senators in the US have proposed the CIRCUIT Act to provide 10% tax credits for U.S. transformer manufacturers.
Related:
Other
Crown Plus, a UK contractor, raised £3.9m in funding. They are a highway drainage contractor which has developed its own range of equipment for the refurbishment of filter drains and gravel filled drainage systems. More here.
Notes:
It was challenging to determine whether to include this, as it doesn't seem like a traditionally venture-backable solution and is more suited to private equity investment.
However, they received funding from the Midlands Engine Investment Fund II, managed by Mercia Ventures.
This fund provides both debt finance and equity investments of up to £5m.
This was included because the fund manager is a venture fund with active startup investments.
I’d be curious to understand whether this is truly a venture investment, as their website suggests they operate more like a contractor vs high growth startup.
Daupler, a Missouri startup, raised $15m in Series B funding. They have developed software which helps utilities and public works infrastructure departments respond to incidents such as water main breakers or power outages by automating triage and dispatch of repair crews and as well as notifying customers. More here.
Notes:
This solution assists with the operation of critical infrastructure, automating notification of new incidents and providing valuable information to repair / field services crews to resolve.
A quick clarification on how startups are included
(Policy and Regulatory changes below)
As you may notice, some startups (e.g Ocean Ledger) don’t appear to be ‘construction.’ The reason why is that the focus is on solutions which can be used by the construction industry, which is incredibly diverse with varying stakeholders including contractors, designers, architects, trades and suppliers.
Ocean Ledger is valuable for architects / engineering designers (A&E of AEC). It’s a valuable data input for technical reports and designs for climate adaptation, increasingly requested by governments to future-proof infrastructure.
When a solution is less obviously ‘construction’ it will be placed lower down or in the ‘other’ category usually with a note explaining its value. My background is in engineering design for pavement and aviation (linear infrastructure) / innovation so I tend to notice solutions I / my team would have found valuable but a contractor may never need.
I include these startups as the goal of the newsletter is to increase the awareness and adoption of new solutions. This weekly email for the former and the biweekly guest articles focusing on the latter.
If you have any ideas on how to improve this curation, please let me know!
Policy and Regulatory Changes
US
New York gets closer to implementing gas ban in new buildings
The State Fire Prevention and Building Code Council voted to recommend major updates to the state’s building code.
The draft updates include rules requiring most new buildings to be all-electric starting in 2026.
It does leave out recommended rules around batteries, EV charging, and solar.
Trump lumber tariff threat is latest headache for homebuilders
The Trump administration will investigate whether to place tariffs on lumber imports on the grounds of national security.
The investigation will determine if foreign governments were dumping cheap lumber onto U.S. shores.
In 2024, the Biden administration nearly doubled tariffs on imports of Canadian softwood lumber to 14.5%.
States pause HVAC rebates following Trump funding freeze
The IRA allocated nearly $9 billion for states to provide point-of-sale rebates to homeowners who make qualified HVAC upgrades.
On January 20, President Trump signed an executive order requiring the Department of Energy to “immediately pause the disbursement of funds” while it “reviews its processes” over a 90-day period.
Arizona, California, Colorado, and Rhode Island have suspended their rebate programs in response.
Trump’s transportation department cancels new review step that could’ve slowed state projects
The Administration previously demanded an extra layer of federal scrutiny whenever states seek even minor changes to their transportation plans.
Under the plan lawyers in the U.S. Department of Transportation ’s Washington headquarters signed off on any changes.
There was concern that some payments for roads, bridges and transit would be delayed or even halted due to policy differences.
This request has now been reversed with the review process being at the regional level.
Trump extends tariff pause to all USMCA goods
Imports from Mexico and Canada that are compliant with the trade deal will not be subject to tariffs until April 2.
Trump hikes tariffs on China by 10%
Trump increased tariffs on imports from China by an additional 10% making the ordered rate 20%.
Montana court backs pro-construction housing laws
A district court judge ruled against most of the claims made by a homeowners group that sued to challenge four pro-construction housing laws.
The laws upheld include:
2023’s Senate Bill 245, which requires cities of 7,000 residents or more to allow apartment-style housing in most areas set aside as commercial zones.
2023’s Senate Bill 323, which requires cities to allow duplex housing on any home lot in cities with 5,000 residents or more.
2023’s Senate Bill 528, which requires cities to adopt regulations allowing more construction of accessory dwelling units, or secondary housing structures that share parcels with larger homes.
Notes:
The increased demand for homes is resulting in policies or zoning changes to increase home density.
This tends to be opposed by NIMBY’s (Not In My Backyard) making implementation challenging.
UK
Hydrogen-powered plant to be allowed on roads
The government will allow hydrogen-powered diggers, mobile cranes and other construction machinery to operate on public roads.
The Labour government is planning on moving ahead with the law change which was first proposed in 2024.
Hydrogen-powered non-road mobile machinery cannot currently be used on public roads unless their operator has obtained a special exemption.
EU
EU Unveils Climate Reg Rollback
European lawmakers plan to exempt most companies from the bloc’s climate risk disclosure regime.
The Corporate Sustainability Reporting Directive (CSRD) requires companies to disclose how climate shocks could impact their operations.
This will apply only to firms with more than 1,000 employees and €450mn (US$471mn) in turnover.
80% of businesses would not meet the reporting mandate.
Notes:
This will have an impact on construction companies' regulatory requirements.
EU Launches €100 Billion Clean Industrial Deal for Decarbonization and Clean Tech Growth
The plan prioritizes reducing energy costs, with a new Action Plan on Affordable Energy that:
Expands clean energy infrastructure and accelerates electrification.
Improves grid interconnections to ensure stable energy supply.
Lowers industrial energy bills by reducing dependence on imported fossil fuels.
EU unlikely to grant concessions to India on CBAM
The EU has made it clear that India is unlikely to receive any leniencies regarding the union’s deforestation and carbon-border levy regulations.
The EU will impose a carbon tax on imported goods starting January 1, 2026.
A new rule known as the Deforestation Regulation stipulates that goods entering the union cannot originate from deforested territory after December 31, 2020.
For major businesses, it will take effect on December 30 of this year; for small businesses, it will take effect on June 30, 2026.
China and India, have criticized these regulations, claiming that they are trade restrictions masquerading as carbon emission reductions.
National Infrastructure Projects & Priorities
US
U.S. energy secretary, OpenAI co-founder say AI race is 'Manhattan Project 2' in Oak Ridge visit
U.S. Secretary of Energy Chris Wright declared that competition with China to develop artificial intelligence capabilities amounts to another worldwide technology race.
Notes:
To support the growth of AI, we require AI infrastructure e.g data centres.
This will result in a growth in construction in this sector as well as power generation facilities and transmission infrastructure to support them.
Additionally, we may see more focus on permitting reform to streamline energy project development.
Adani Group revives US investment strategy
Indian conglomerate Adani Group, has renewed its plans to fund nuclear power and utilities projects in the US.
This is despite criminal charges there against the Indian conglomerate’s billionaire founder.
The initial plans included a pledge to invest US$10 billion ($16.1 billion) in the US following President Trump’s election victory.
The investment would have created up to 15,000 jobs.
Trump’s ordering to halt enforcement of the Foreign Corrupt Practices Act has heightened expectations the case would collapse.
Company announces first US-built small modular nuclear reactors at Palisades
Holtec International plans to deploy the first US-made small modular nuclear reactors (SMRs) at the Palisades plant in Michigan by 2030.
SMR’s offer advantages such as scalability and lower upfront costs, however, the economic viability remains unclear.
There are only two SMR’s operating globally with three more under construction.
TSMC pledges to spend $100B on US chip facilities
TSMC aims to invest “at least” $100 billion in chip manufacturing plants in the U.S. over the next four years.
This is adding to its existing $65 billion commitment in Arizona.
It’s part of an effort to expand the company’s network of semiconductor factories.
China
NIO's CEO says Shanghai battery swapping stations near profitability
The company has deployed 3,101 battery swapping stations, 4343 charging stations and 25,424 charging piles across China.
Notes:
This is interesting as battery swapping is not a model that has so far been deployed at scale in the US.
Profitability is reliant on Nio’s car sales ramping up and its battery renting model advancing with analysts expecting breakeven by end of 2026.
Similarly to BYD Auto which has its own construction subsidiary, these electric car companies require infrastructure investment and construction to support their electric ambitions.
China's Belt and Road Initiative Is Reshaping Global Power Infrastructure
Chinese companies have installed 156 GW of power projects in participating countries since the BRI’s launch in 2013.
70% have been based in Asia, followed by Africa at 15%.
Saudi Arabia is projected to have the highest demand for power growth, with plans to install 41 GW of solar power and 13 GW of wind power.
Germany
Germany’s Aging Energy Grids Seen Winning From Spending Plan
Germany’s plan to create a €500 billion ($534 billion) infrastructure fund.
This will go toward infrastructure projects including transportation, energy grids and housing over a period of 10 years.
Finland
Finland’s Huge Battery-Storage Project to Start Construction
The 70-megawatt system, which can store power for two hours, will be operational in the second half of next year.
Investment funds
EIB backs Africa Finance Corporation $750 Million Climate Resilient Infrastructure Fund
This initiative aims to accelerate climate adaptation and sustainable infrastructure across Africa.
It does so by embedding resilience measures at every stage of infrastructure development—from design and construction to operation
News
State of the Market Report (Davis Construction)
This explores the landscape of the Mid-Atlantic market (US) and highlights the pricing trends, supply chain issues, and significant industry shifts rounding out the fourth quarter of 2024.
Key insights include:
Nearly half of imported construction materials come from countries with newly imposed tariffs.
To meet the construction industry's needs in 2025, approximately 439,000 new workers will be required.
Mechanical trade pricing increased by 2% in Q4 2024 while most other trades remained flat.
Securing Full Stack U.S. Leadership in AI
The report explores the power and chip needs required for data centres.
An additional 40-90 GW of new energy demand is estimated, up from the 32 GW of demand capacity that currently exists.
This would result in a total capex of $2 trillion by 2030 (~80% on chips, 20~ on ‘other’).
The challenge of monitoring policy mixes for reducing emissions from buildings
The building sector is responsible for approximately 34% of global energy consumption and 37% of global greenhouse gas emissions.
The Schools Reviving Shop Class Offer a Hedge Against the AI Future
School districts around the U.S. are spending tens of millions of dollars to expand and revamp high-school shop classes.
They are betting on the future of manual skills overlooked in the digital age and are offering vocational-education classes.
Atlanta’s data center market isn’t just growing fast. It’s unprecedented
Atlanta overtakes northern Virginia as a hotspot for data center construction, with nearly 2,160 MW worth of development underway across metro Atlanta.
Data center supply, construction surged in 2024 amid AI boom
Data center supply in major “primary” markets like Northern Virginia, Atlanta and Chicago rose 34% year-over-year in 2024 to 6,922.6 MW.
There was a further 6,350 MW under construction at year-end.
China May Be Ready to Use Nuclear Fusion for Power by 2050
China National Nuclear Corp., which runs an experimental device dubbed the ‘artificial sun’, could start commercial operation of its first power generation project.
This would be ~5 years after a demonstration phase starting around 2045.
Newsom asks Congress for almost $40B in wildfire recovery aid
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.