Last Week in ConTech - 11 November 2024
Introducing AEC Tech Jobs! + Saudi Arabia considering $100b AI investment
Last Week in ConTech is a summary of the most important construction 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:
10 Startup Fundings
10 Policy and Regulatory Changes
1 US election policy updates
7 New National Infrastructure Projects & Priorities
0 New investment fund
2 Acquisition
8 News articles
23 new jobs posted - view here
Reading time: 15 mins
(regular content below)
Hey Everyone!
Last week Allister Lewis, Stefanie Reichman and I launched AEC Tech Jobs. It’s a hub for startup roles in architecture, engineering and construction.
The goal of this newsletter is to increase the awareness and adoption of solutions in construction. A key part of addressing this problem is ensuring that we have high quality talent entering the construction tech ecosystem.
I see the Ideal Customer Profile (ICP) for the job board as two fold:
Construction industry professionals seeking to transition to tech.
Experienced startup operators exploring their next challenge.
Addressing both of these customer segments is key.
We want people from the industry working for startups in sales and customer support roles as they can speak the language of construction and have empathy for the end user.
We also want experienced talent choosing ConTech over other sectors such as FinTech or Healthtech. Right now, they don’t have an awareness of construction tech, the opportunities or where to find roles.
Our ultimate hope is to make this into a hub for opportunities and conversation to push the AEC industry forward. And our first step is to make it easier for people to find jobs at ConTech startups.
If you want to be involved, support, or have feedback, please reach out! I’m always happy to chat.
Check out AEC Tech Jobs here.
Does the email get cut off by your reading application? You can view the full version online here.
Startup Fundings
Reality Capture
Cintoo, a French startup, raised €37m in Series B funding. They have developed a reality capture platform for the AEC industry which enables BIM workflows (such as design vs as-built comparisons) as well as providing a metaverse (digital twin) platform to virtually navigate project sites. More here.
[View open jobs - 2 roles in Software, 1 role in Product, 2 roles in Sales]
Flyted, an Italian startup raised €1m in Series A funding. They design, assemble and operate drones to undertake surveys on transportation, telecommunication and energy infrastructure as well as real estate. More here.
Renewable Site Energy Systems
Ampd, a Singaporean startup, raised $27.3m in Series B funding from investors including Taronga Ventures. They have developed battery energy storage systems which replace diesel generators in construction. More here.
[View open jobs - 3 roles in Products, 1 role in Operations, 1 role in Software, 1 role in Other]
Notes:
The City of Oslo (Norway) is planning to make their construction projects emission free by 2025.
Six more cities in Norway have announced their aim to reach zero-emission construction sites by 2030.
Weather
Corudulus, a Danish startup, raised €3m in funding. They provide hyperlocal weather forecasts powered by AI helping construction companies to track on site weather conditions, predict upcoming rain days and document local weather to provide to insurance companies or developers. More here.
Artificial Intelligence
Workorb, a Canadian startup raised Seed funding (undisclosed). They are building AI powered solutions for the Architecture, Engineering and Construction industries which streamline and automate the business development process such as RFP qualification, response drafting and proposal development to quality checks and draft contract review. More here.
Notes:
The solution is interesting as it is aiming to solve multiple problems which are currently being served by individual startups. For example, Workorb provides:
Proposal Development (Joist is a competitor).
Compliance Management (Document Crunch offers this).
Detail Management (Pirros is focused on this).
This is interesting to me as it raises the question, will customers want point (Joist, Document Crunch) or platform (Workorb) AI solutions?
Business Development
Cloverleaf AI, a Colorado startup, raised $2.8m in Seed funding. They have developed a solution which alerts government contractors the moment a project is discussed such as a new stadium or road allowing them to be the first in the know to start building relationships with decision makers early. More here.
Notes:
Cloverleaf has a Vocal Fingerprinting product which monitors and reports government officials' positions from each public meeting they take.
They also have an Opportunity Database which is a searchable index capturing over 100,000 government opportunities before they reach the request for proposal (RFP) stage.
This solution could be particularly valuable for business development professionals at construction firms, who can set up alerts for new projects discussed in public meetings within their region.
This early insight allows firms to build relationships with key stakeholders before an RFP is issued, which can significantly improve their chances.
This approach is critical, as, generally speaking, in many government projects, the likely winner is anticipated well before the RFP is issued. If a firm only learns of the project at the RFP stage, it is often too late to be competitive.
Intelligent Transportation Systems
Derq, a Detroit startup, raised funding (undisclosed). They have developed an AI powered real time intelligent transportation system which includes solutions such as adaptive traffic management, smart pedestrian crosswalks and real time identification of safety near misses and collisions for root cause identification and countermeasure development. More here.
Notes:
Intelligent Transportation Systems (ITS) is the application of information and communication technology (ICT) to the management of a transport system.
It involves placing ICT at the roadside and connected to traffic management centers helping them to make more informed decisions such as to reduce congestion or improve safety.
The impending adoption of Autonomous Vehicles (AV) brings a new data layer into the ITS mix.
Where previously traffic data was collected via video feed or sensors, there is a new layer as AVs can upload and ingest data.
These connectivity capabilities can be used to pull more accurate data insights as well as allow traffic management centers to push real time alerts to AVs to divert traffic or avoid congestion.
This is an improvement on conventional ITS such as Variable Speed Limits or Dynamic Message Signs as it can ensure the message is received by the AV.
Derq are developing Vehicle to Everything (V2X) applications including providing real-time infrastructure perception to AV to avoid dangerous conflicts / collisions.
Robotics
FBR, an Australian company, raised $8m via share placement. They developed the world’s first fully automated end to end robotic bricklayer. More here.
[View open jobs - 1 role in Software]
Notes:
The funding is to help them complete their home demonstration program in Florida, which is a program with CRH Ventures.
CRH, upon review of the results, has the condition to trigger a joint venture.
This could result in the sale of up to 300 of Hadrian X robots at $2 million each.
Home Services / Vertically integrated contractors
Vamo, a German startup, raised €7m in Seed extension funding. They provide heat pump installation and maintenance services managing the process from lead to delivery and installation via their own trained installers. More here.
[View open jobs - 3 roles in Finance, 1 role in Marketing, 4 roles in Operations, 3 roles in Sales, 2 roles in Software, 2 in Other]
Notes:
In the EU, the residential building market classed as ‘poor energy efficiency’ is valued at €390 billion.
Vamo has developed a proprietary software solution called ‘HeatOS’ which is used to optimize the customer journey from ‘lead to heat’ (from sales lead to heat pump installation).
The software enables Vamo to efficiently manage the supply chain and minimizes the time installers spend on non-installation tasks, freeing them up for more direct work.
When Vamo started, they operated as a vertically integrated installer (contractor) - instead of selling the solution to the industry, they used their own software and self-performed the work.
This allowed them to operate more efficiently vs incumbents and capture a larger part of the market.
Now, as they are scaling, they have built a Germany wide partner network which accounts for ~50% of Vamo’s installations.
This enables the company to grow in an ‘asset light’ way using a partner network of small, local installation companies.
The approach is like a fast-food chain, they build their operational knowledge by running their restaurants (completing their own installations) but the real scale comes from their franchise model.
It’s another example of the cloud installer model.
Pre-Design
Glint Solar, a Norwegian startup, raised $8m in Series A funding. They have developed a platform for solar developers allowing them to quickly evaluate a site for feasibility using country-specific GIS data and topographic analysis to undertake pre-design and analysis with engineering approved settings. More here.
[View open jobs - 3 roles in Sales]
Policy and Regulatory Changes
Feds deal blow to dream of data centers connected to nuclear plants
Federal regulators unexpectedly rejected a proposal from Amazon and power-plant owner Talen Energy.
The companies aim to rapidly expand a large data center (from 300MW to 480MW) entirely powered by a nuclear plant.
The expansion request was challenged claiming that it could shift up to $140 million in costs per year onto customers of utilities.
The regulators are focused on avoiding a situation where a major electricity user, such as a data center, would create risks for the ordinary consumer.
The companies can resubmit their proposal to more thoroughly address the regulators concerns.
This denial does impact plans for other companies such as Vistra and Dominion Energy which are looking to entice data center developers to plug directly into their nuclear power plants.
Notes:
Nuclear energy has seen a resurgence due to the energy demands required from data centers.
Amazon’s purchase of a data center campus connected to a nuclear plant was meant to help them quickly access nuclear power instead of waiting years for new power plants.
This decision impacts the feasibility of this strategy.
UK Government Confirms Carbon Border Adjustment Mechanism (CBAM) Rollout In 2027
The UK CBAM will apply levies on aluminum, cement, fertilizers, iron, steel and hydrogen.
The mechanism is designed to make it harder for countries that use fossil fuels in their energy mix to export to the UK.
Should products from the mentioned industries be produced (verifiably) with renewable energy then the charge will not apply.
Berkeley Voters Reject Tax on Natural Gas Use in Buildings
Berkeley was the first city in the US to attempt a ban on natural gas use in new buildings.
This ban was struck down by a federal appeals court.
In response, the city introduced a ballot measure to reduce natural gas use.
The ballot measure would have required owners of commercial and multi-family buildings 15,000 square feet or larger to pay a new tax to use gas.
It received just under 32% of the vote Tuesday, with all precincts reporting.
Notes:
In the US, climate regulation is often championed at the municipality level in favorable jurisdictions before being adopted more broadly.
For example Berkeley’s gas ban in 2019 led to 70 other jurisdictions implementing similar bans over the next 4 years.
In May 2023, New York state restricted natural gas in new large buildings.
However litigation forced the city to rethink how the ban is implemented.
This failure places all the existing gas bans in a precarious place and it is unclear how these will be implemented in the future.
Swedish Court Grants Permit To Build Nuclear Waste Burial Site
A Swedish court gave the green light to begin construction on a nuclear waste repository where spent fuel will be buried for up to 100,000 years.
The project would make Sweden one of the first countries in the world, along with Finland, to bury its spent atomic fuel for that length of time.
The court approved storage facilities for nuclear waste from the 12 reactors that are part of the current Swedish nuclear power programme.
Washington voters uphold the state’s pioneering climate law
Voters in Washington state upheld a landmark climate law (2021 Climate Commitment Act) that created a cap-and-invest program.
Under the law, large businesses like utilities and refineries must purchase permits for any greenhouse gasses they emit in the state.
Washington’s cap-and-invest program has generated more than $2 billion in revenue for clean energy and electrification projects across the state.
Building materials: Council adopts law for clean and smart construction products
The Council has today adopted the construction products regulation (CPR).
This harmonizes the EU rules for marketing of those products, facilitates their free movement in the single market, reduces administrative burdens and promotes the circular economy and technological development in that sector.
It also provides for the development of a digital passport system for construction goods.
These passports are designed to enhance transparency and sustainability in the construction industry and facilitate green choices.
The Administration announced updates to the Work Zone Safety and Mobility Rule and the Temporary Traffic Control Devices Rule.
These regulations are designed to improve work zone safety for roadway workers as well as the movement of motorists traveling through work zones.
The updated rules will add safety and mobility performance measures for use by states when developing their work zone policies.
Key updates include:
Requiring the use of positive protection devices, such as temporary concrete barriers, to protect workers from motorized traffic operating at high speeds during construction, utility, and maintenance operations
Encouraging the use of work zone programmatic reviews, which are more comprehensive, holistic, and data-driven
Transit agencies must improve rail worker safety under new FTA rule
The Federal Transit Administration published a new rule on Oct. 31 to improve safety for transit workers who work on or around tracks.
It requires certain transit agencies to establish a worker protection program approved by their state safety oversight agency by Dec. 2, 2025.
Transit agencies must create or update safety manuals, establish training programs, provide job safety briefings and protect lone workers on or around tracks.
Massachusetts utilities file $5B efficiency plan with focus on ‘thoughtful electrification’
The Mass Save plan, filed with the state’s Department of Public Utilities, is aiming to weatherize more than 184,000 homes and install heat pumps for more than 119,000 households from 2025 to 2027.
DOE earmarks nearly $150M for 67 clean tech projects at federal facilities
The U.S. Department of Energy is awarding $149.9 million to 67 energy conservation and clean energy projects at federal government facilities.
It will be used to deploy energy conservation and clean energy technologies like solar photovoltaic systems, wind, geothermal, battery energy storage systems, microgrids and building automation systems at facilities.
US election policy updates
What Trump’s reelection could mean for the IRA, offshore wind
President-elect Donald Trump said in September that he will terminate the Inflation Reduction Act and said at a May rally that he would issue an executive order to make sure that offshore wind ends on day one.
It is unclear if / how this will be implemented as the clean energy tax incentives in the IRA help with energy independence and the onshoring of manufacturing.
National Infrastructure Projects & Priorities
Global
World’s largest transformer maker warns of supply crunch
AI data center demands and renewable energy’s dispersed nature are driving equipment orders for power grid upgrades.
Hitachi Energy, the world’s largest producer of transformers, has warned its industry is overwhelmed and unable to meet the demand for grid equipment.
Notes:
While the world has reduced the cost for renewable energy generation (e.g solar parks construction cost reducing), the challenge is now grid connection.
Due to supply chain issues and permitting challenges (US) it is difficult to connect the new renewable energy generation sites to the broader grid.
This is a critical area which is likely to receive more funding and interest as net zero target deadlines approach.
India
India State Giant Approves $9.5 Billion of Coal Power Projects
The latest investment approval is for 6.4 gigawatt of generation capacity spread across three locations.
Prime Minister Narendra Modi’s government has doubled down on coal in recent months, prioritizing energy security over environment and climate.
A growing economy and longer spells of heat waves have resulted in a surge in electricity demand, nearly three-quarters of which is met with coal.
China
Shenzhen to invest US$1.7 billion in economy for flying cars, drones by 2026
Shenzhen has pledged to invest 12 billion yuan (US$1.7 billion) in infrastructure for the low-altitude economy over the next two years.
They aim to build over 1,200 take-off and landing platforms by 2026.
Shenzhen had built 249 take-off and landing facilities by the middle of this year, and aims to add 147 more by the end of this year.
The city will also build more than 8,000 new 5G-Advanced base stations to bolster wireless network coverage for airspace below 600 meters.
UK
United Kingdom Construction Industry Report 2024-2028
The construction industry in the United Kingdom is expected to grow by 4.5% to reach GBP 168.60 billion in 2024.
The government renewed its Affordable Homes Programme for 2021-2026 with a £12.2 billion multi-year settlement.
The government plans to invest £700-775 billion in infrastructure over the next decade, with £379 billion already confirmed.
The infrastructure investment will primarily focus on energy and transportation projects, accounting for about 70% of the spending.
Saudi Arabia
Saudis Plan $100 Billion AI Powerhouse to Rival UAE Tech Hub
Saudi Arabia is planning a new artificial intelligence project with backing of as much as $100 billion as it seeks to develop a technological hub.
They will invest in data centers, startups and other infrastructure to develop artificial intelligence.
The initiative, called “Project Transcendence,” would aim to team up with large, established tech companies, with the Saudis offering help with infrastructure and capital.
Mexico
Mexico’s $23.4 Billion Energy Plan Aims to Woo Private Investors
The President unveiled a plan promising to increase funding for power generation and transmission projects and streamline rules for private investors.
It included $23.4 billion in spending on energy infrastructure projects through 2030, allocating $12.3 billion to electricity generation and $11.1 billion to transmission and distribution networks.
The President previously announced goals to convert Mexico’s grid to 45% renewable energy by the end of her term in 2030
Japan
Japan Restarts Nuclear Power Plant Closest to 2011 Quake
The nuclear power plant closest to the epicenter of the massive earthquake that rocked Japan in 2011 resumed operation.
It’s a major milestone in the country’s bid to revive its use of atomic energy.
Nuclear used to account for around a quarter of Japan’s electricity mix prior to the disaster, but it made up just 6% as of March 2023.
Acquisitions
BuilderComs, a North Carolina startup providing construction project management and communication software, acquired Hometrack, a Colorado startup which uses public data and AI to create comprehensive home profiles from images streamlining the property assessment process. More here.
BigTime Software, a Chicago company developing time tracking, project management, resource management, invoicing, and payment solutions for professional services businesses (including civil engineering), acquired WorkRails, a New York company providing configure, price, quote (CPQ) and workflow automation platform for professional services organizations. More here.
News
Axa XL offering construction cyber endorsement
Axa XL, a major global insurance provider, announced it would extend cyber policies to construction companies.
This is as the industry's growing reliance on various digital tools and data, such as 3D models, project management platforms, AI, Internet of Things devices, and supply chain management software, exposes construction companies to increased cyber risks.
It includes coverage for income loss due to not being able to submit a bid because of a cyber breach or system failure, and for contingent bodily injury and property damage claims caused by a breach.
Construction’s manufacturing boom: Mapping the biggest facilities underway in the US
In the last 12 months till August, manufacturing construction spending increased 18.3%.
How to create an innovative culture in a construction company
The do’s and don’ts of running a tech pilot (Construction Dive)
The Rust Belt Is Becoming Ground Zero for the EV Charging Boom
The US is on pace to reach one car charger for every 10 gas stations this year.
~600 quick-turn stations switched on in the third quarter across the US, a 7% increase from the end of June.
There are now nearly 9,000 public, fast-charging sites in the US.
At the current rate of growth, it is expected to be ~11,600 sites by the end of the year.
India hands out fines to owners of polluting vehicles, building sites
New Delhi is the world's most polluted major city.
60,000 vehicles and more than 7,500 building sites were fined for infringing pollution rules
Environmental compensation payments have been ordered for 597 sites, while 56 have been told to close.
Oil giant BP is killing 18 hydrogen projects, chilling the nascent industry
This could have an impact on the construction of hydrogen infrastructure.
New York City declares drought watch after driest October on record
New York has declared a citywide drought watch as it experiences one of the longest dry streaks on record.
Notes:
This will have an impact on water tech such as leak detection technology for buildings.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.