Last Week in ConTech - 13 January 2025
How natural disasters are changing insurance and construction tech
Deep insight: How natural disasters are changing insurance and construction tech
(This is a new section I am testing. When there is a topical topic affecting construction, I’ll dive into it in a bit more detail. It will be ~300-350 words or 1-2 min to read. Regular content below.)
For the last couple of days, the focus has been on the California wildfires and the immense damage they’ve caused. It’s a terrible situation made worse by the fact that major insurers have been scaling back coverage in high-risk areas.
There’s been plenty of discussion about why insurers are pulling back, but far less on what happens next. How do we ensure people can still get insurance, especially when extreme weather events are becoming more common?
In the last 12 months, I’ve noticed a new kind of InsureTech / ConTech startup emerging which could provide an answer. These startups fall into two categories: proactive insurers and those offering parametric policies.
On the proactive side, take Stand Insurance. They use AI to model homes, identifying risks and suggesting improvements to boost resilience. Implementation of the mitigations (e.g. replace mulch with gravel) results in lower premiums.
On the other side we have Arbol. They are a parametric insurer.
In traditional insurance, you pay a premium to cover potential losses. Payment is made after a loss assessment with the goal to put the insured back in the position they were prior to the event. This approach creates lengthy claims assessments incentivizing payout reduction.
With parametric, a model pays out based on occurrence of objective predefined triggers such as wind speed or rainfall level. For example, if the temperature hits 36 degrees celsius (96 Fahrenheit) and wind speed 36 km/h (20 mph), pay me $50,000.
Now, imagine combining these approaches. An insurer could offer parametric policies with premium discounts for climate adaptations, while partnering with contractors (or self-performing) to deliver the mitigations.
This model would enable insurers to generate revenue from both the adaptation work and long-term premiums, creating a win-win scenario.
And partnering for contractors means guaranteed, consistent work with pre-qualified leads, fostering stability and growth in their business (Related: The Cloud Installer Model).
In this issue there are:
9 Startup Fundings
12 Policy and Regulatory Changes
10 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
8 News articles
10 new jobs posted - view here
Reading time: 13 mins
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Startup Funding
Building Decarbonization
Tangible, a San Francisco startup, raised $3m in funding. They are building a platform to help real estate owners and developers manage embodied carbon. It does so by completing automated takeoffs, mapping this to environmental product declarations and suggesting alternative materials as well as assisting with reporting for compliance. More here.
[View open jobs - 1 roles in Software]
Notes:
Embodied carbon is the amount of carbon emitted during the construction of a building.
This includes the extraction of raw materials, refinement, transportation, installation and disposal of old supplies.
This is responsible for 11% of global greenhouse gas emissions.
Side note:
While there is increased regulatory pressure and interest on using green materials, adoption remains low.
The truth is that using new materials which are unproven creates risk in terms of material failure but also to the delivery / installation process.
To overcome this, I’ve been writing a report on how green material startups can go to market - I’m sending this out later this week.
Tangible were one of the companies I chatted with to learn more about this process - their team is great.
Renovation
Beams, a London startup, raised $9m in Series A funding. They are building a managed marketplace for the home renovation market which makes it easier for customers and building to find each other as well as using software to manage the process, benchmark costs and vet builders performance. More here.
[View open jobs - 2 roles in Marketing, 3 roles in Software, 1 role in Sales]
Notes:
Beams have developed a pricing engine which predicts how much a project will cost and how long it will take.
They use 3D photographic and laser scans to build a detailed model of the home to design the renovation.
Looking through their ‘How it works’ page, their system empowers homeowners to project manage their renovations acting as a digital project manager.
Insurance
Jones, a New York startup, raised $15m in Series B funding. They automate the process of collecting and verifying insurance documents which makes it easier for a property manager or general contractor to ensure tenants, vendors or subcontractors have the necessary coverage to be in the building / on site. More here.
[View open jobs - 1 role in Software]
Notes:
General Contractors require all of their subcontractors to have insurance.
The level of coverage varies depending on the risk / size of the job.
Usually there is a poor intern or junior site engineer whose role is to contact each sub, get the certificate of insurance and ensure that the policy date is valid and meets the project requirements.
When you have 100s of subs on a site, this becomes incredibly complex especially as policies expire at different times meaning they need to be re-requested.
Green Materials
Mimicrete, a UK startup, raised Pre-Seed funding. They are developing self-healing concrete which works to heal cracks as soon as they open up and can more than double the lifespan of the material. More here.
Robotics
Roboforce, a Californian startup, raised $10m in funding. They have developed a hyper accurate robot work which is able to complete tedious, repetitive tasks initially focusing on the solar panel installation market. More here.
[View open jobs - 9 roles in Software, 1 role in Operations, 1 role in HR, 2 roles in Design, 2 roles in Other]
Notes:
In 2024, ~53 gigawatts of solar projects were delayed due to worker shortages or long waits for equipment.
Gore Robotics, a Korean startup, raised ~$3.8m. They are building robots to be used for material hauling on construction sites which utilize autonomous driving technology based on architectural blueprints. More here.
Surveying
Xocean, an Irish startup, raised €115m in funding. They use uncrewed surface vessels to collect ocean data such as depth, seafloor topography, subsurface sediment layers and geological structure data and sell it to the offshore energy (wind turbines) and civil hydrography sectors which can be used to assist with civil design. More here.
[View open jobs - 1 role in Sales, 1 role in Operations, 1 role in Software, 9 roles in Other]
Vehicle Management
SureCam, a Missouri startup, raised $36m in funding. They have developed connected dash camera technology which helps fleets operate more efficiently. Their solution has gained traction in construction assisting with fleet management, real time GPS as well as providing visibility on materials that are being hauled during transport. More here.
[View open jobs - 1 role in Finance]
Other
Swave Photonics, a Belgian startup, raised €27 million in Series A funding. They’ve developed a spatial computing lens which users can wear to augment reality with holographic content with dynamic depth. More here.
Notes:
While not a construction specific solution, it has use cases in hands free navigation using holographic displays and to be overlaid on users' glasses.
This can be incredibly useful for equipment operators (e.g. overlaying the design including underground services) and for training purposes.
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Policy and Regulatory Changes
US
Biden-Harris Administration Announces $1.35 Billion to Increase Climate Resilience Nationwide
The Building Resilient Infrastructure and Communities (BRIC) annual grant program is making $750 million available for projects that protect people and infrastructure from natural hazards and the effects of extreme weather events.
The Flood Mitigation Assistance program is making $600 million available for projects that mitigate flood risks facing homes and communities.
Trump Says He Wants No Wind Farms Built During Presidency
President-elect Donald Trump said he would seek to have a policy of having no wind farms constructed during his second term.
This threatens billions of dollars in planned wind projects
Notes:
There are nearly 40 gigawatts of land-based and offshore wind projects that are under construction or in advanced development in the U.S. as of late last year.
DOE-Google Collaboration Will Help Consumers Identify Qualified Technicians for Home Energy Upgrades
Technicians are able to earn ‘Energy Skilled’ credentials from the DOE.
If at least one technician in a business has completed this, Google will display a badge on their business profile.
It is to help find qualified providers offering home energy audits and heat pump installations.
The U.S. Department of the Treasury (Treasury) and the IRS released final rules for the Clean Electricity Investment and Production Tax Credits.
These new credits use financial incentives to drive clean energy adoption.
These credits are tech neutral with any technology that meets emissions standards qualifying.
It is estimated that the credits will add an additional 146 GW to 308 GW of clean energy capacity to the U.S. grid by 2030.
Biden’s clean hydrogen tax credits are officially decided — for now
These finalized rules aim to support a new clean hydrogen industry.
These provide a tax credit up to $3 per kilogram but have tight emissions limits.
This subsidy is enough to make very-low-carbon hydrogen cost-competitive with the fossil-fuel-derived “gray” hydrogen that is currently produced.
Texas, Utah, Last Energy challenge NRC’s ‘overburdensome’ microreactor regulations
The states asked the court to exempt Last Energy’s 20-MW reactor design and research reactors from the NRC’s definition of nuclear “utilization facilities.”
Additionally they want the NRC to develop a more flexible definition.
Notes:
The outcome of this case will have an impact on nuclear construction which is increasing in demand and interest due to the energy needs associated with AI data centres.
Big buildings are a climate problem. These policies aim to fix that.
In the U.S., buildings can account for up to three-quarters or more of a city’s carbon output.
This year, New York City and St. Louis will be the first metropolises with building performance standards to reach initial compliance deadlines.
Building performance standards work by setting limits on emissions or energy-use intensity per square foot in a city’s largest building.
By May, large property owners will be required to submit data on energy performance providing the first concrete data on effectiveness.
US, India Make Progress on Civil Nuclear Deal, Sullivan Says
The US is finalizing steps to remove long standing barriers to civil nuclear cooperation with India as the two countries look to bolster relations further.
India, one of the world’s biggest carbon dioxide emitters, is seeking to rapidly expand its use of nuclear power over the next decade as it aims to both decarbonize and meet rising energy demand.
Notes:
The announced changes will allow Indian entities previously restricted by U.S. regulations to engage in deep collaboration with American private sector firms, scientists, and technologists.
This will have an impact on nuclear development and construction in the countries and is driven by the US desire to have a counterweight to China.
Chicago keeps its New Year’s resolution: All city buildings now use 100% clean power
As of Jan 1, all 400+ municipal buildings are running on renewable energy.
To meet these goals, Chicago helped finance a solar farm.
They agreed to purchase approximately half the installation’s total output, which will cover about 70 percent of its municipal buildings’ electricity needs.
The remaining 30 percent is covered through the purchase of renewable energy credits.
More than 700 other U.S. cities and towns have signed similar purchasing agreements since 2015.
Biden bans new offshore oil drilling along much of US coast
President Joe Biden announced an executive action which protects more than 625 million acres of U.S. coastline areas from future offshore drilling.
Trump, who has promised to boost domestic fossil fuel production, said he would undo the decision.
However this may be difficult as Biden's actions will rely on an open-ended provision in a 72-year-old law: The 1953 Outer Continental Shelf Lands Act.
It allows the president to permanently withdraw parts of the Outer Continental Shelf from leasing activities, without providing a way for another president to undo it.
The reform includes measures to address the federal government’s inefficient use of office space and draw federal employees back into the office.
It includes the consolidation and sale of underused space and the disposition of certain unused properties and increases the number of federal properties the Public Buildings Reform Board recommends for sale or redevelopment.
UK
UK drops plan to phase out gas boilers by 2035
The ban, intended to be included in new house building standards, has been scrapped.
Energy efficiency rules for new homes will limit their installation.
The government plans to extend a £7,500 grant to support heat pump adoption.
Solar panels will be encouraged but not mandatory for new homes.
National Infrastructure Projects & Priorities
India
India's New Industrial Cities Hold Hope for Growth as Economy Slows
India’s plan to build new industrial cities, starting with four in 2016 to 20 now, has so far yielded ~$20 billion in investment.
The first four cities have allocated 3750 acres to more than 300 companies.
All 20 cities are located along infrastructure corridors which India has 11 under various stages of construction and of these fewer than a fourth are near a port.
The sites were identified based on industrial gaps in the regions, population, skill sets and land availability among other factors.
NTPC’s Clean Energy Arm to Build $21 Billion Green Hydrogen Hub
The clean energy unit of NTPC Ltd., India’s largest thermal power producer, is developing a green hydrogen hub at an estimated cost of 1.8 trillion rupees ($21 billion).
The investment will include 20 gigawatts of renewable energy capacity to produce 1,500 tons per day of green hydrogen.
The site will also produce 7,500 tons per day of derivatives including green methanol, green urea and sustainable aviation fuel.
This is the first such project under India’s National Green Hydrogen Mission.
India aims to lift green hydrogen production to 5 million tons a year by 2030 from almost zero currently.
China
China seeks to bolster ports and aviation hubs in western regions
China is to launch 15 measures to bolster the development of its western provinces with the construction of logistical infrastructure such as ports and aviation hubs.
It is to enhance the integration of rail, air, river and sea links in China's west.
The western regions in China have markedly lagged coastal provinces in economic output.
China released a new data infrastructure plan.
Under the plan, by 2029 the main structure of China's data infrastructure will be completed, featuring a data circulation and usage system, an ecosystem for data-related industries, and a mechanism for data infrastructure construction and operation.
Approximately 400 billion yuan (~US$54.5 billion) is expected to be invested each year over the next five years, totalling 2 trillion yuan (~US$272.7 billion).
Notes:
China is leading in the low altitude economy.
They have a vast network of about 4.2 million 5G base stations, and over 300 Chinese cities have begun deploying 5G-A, aiming to create the world's largest low-altitude communication network.
Last year they launched a100-kilometer drone sea-crossing route by creating the first first hundred-kilometer-level 5G-Advanced (5G-A) network.
This is used to connect large drones to fishing vessels to bring fresh produce back to Shanghai from Zhoushan in less than 2 hours.
This network can also be used to transport critical supplies like emergency medicines and plasma over the sea.
US
BLM approves Jove Solar Project
The Bureau of Land Management has approved a large solar power and battery storage project in Arizona.
Once completed, the 600-megawatt project will provide enough clean energy to power 180,000 homes.
The agency has approved 46 renewable energy projects on public lands since January 2021, with total capacity exceeding 34 gigawatts.
Trump’s Dubai Billionaire Ally Vows $20 Billion for Data Centers
The billionaire promised an investment of at least $20 billion to build new US data centers from Arizona to Ohio.
Big Tech
AWS says it’ll invest ‘at least’ $11B to expand data center infrastructure in Georgia
Amazon Web Services (AWS), Amazon’s cloud computing division, said that it plans to invest “at least” $11 billion in Georgia.
Eight months ago, they announced a $11b investment into data centers in Indiana.
Australia
Australia PM Unveils $4.5 Billion Highway Upgrade as Polls Loom
The funding is “the single-largest investment ever into the Bruce Highway,” which supports around 62% of passengers, freight and tourists across Queensland.
Canada
Canada invests $224M in Nova Scotia wind farm project
The Goose Harbour Lake Wind Farm involves construction and installation of 24 turbines with a 168 MW capacity.
Vietnam
Vietnam’s $15.5 Billion Just Energy Transition Partnership Explained
A coalition of international partners including the United Kingdom, the United States, the European Union, and Japan announced a $15.5 billion Just Energy Transition Partnership.
It is designed to accelerate the reduction of carbon emissions and increase the uptake of renewable energy.
The plan calls for Vietnam to reach peak emissions in 2030 and net zero emissions by 2050.
Acquisitions
Trane Technologies, an Irish HVAC provider, acquired BrainBox AI, a Canadian startup which developed automated building management tools which monitor and operate heating, ventilation, and air conditioning (HVAC) systems. More here.
News
How We Build Now (Procore)
Derek Wong, a fractional head of content for ConTech startups, has a great breakdown on linkedin here.
UK faces ‘significant risk’ from procurement collusion, CMA warns
The Competition and Markets Authority is trialling a new artificial intelligence-backed tool it believes may help catch companies that collude when bidding for public contracts.
In 2023, the CMA fined 10 construction firms nearly £60mn for rigging bids to win demolition and asbestos removal contracts.
The AI arms race is on for builders in 2025 (Construction Dive)
Congestion pricing launches in NYC with $9 fee on Manhattan drivers
The program, meant to reduce gridlocked traffic and encourage the use of public transit, is the culmination of an effort first proposed by then-Mayor Michael Bloomberg in 2007.
Related:
96 percent of new US power capacity was carbon-free in 2024
Why America is stuck with an elevator crisis
The U.S. has about 1 million elevators.
The workforce of technicians who know how to fix them is aging and buildings with elevators in need of repair often need to wait ages for replacement parts due to supply-chain issues.
6 airport megaprojects taking flight in 2025
China plans to build ‘Three Gorges dam in space’ to harness solar power
Space-based solar power stations collect energy from the sun in Earth’s orbit and transmit it to the ground, providing continuous power.
Related:
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.