Last Week in ConTech - 16 December 2024
How to commercialise research in construction + Trump proposes permitting reform
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:
12 Startup Fundings
1 Startup out of stealth
12 Policy and Regulatory Changes
9 New National Infrastructure Projects & Priorities
0 New investment funds
0 Acquisitions
9 News articles
12 new jobs posted - view here
Reading time: 15 mins
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Startup Funding
Geotechnical
GBM Works, a Dutch startup, raised €6m in Seed funding. They have developed a silent installation technique using water and vibrations for offshore wind infrastructure which reduces noise pollution during the wind monopile installation phase (the foundation) when compared to traditional pile-driving methods. More here.
[View open jobs - 1 role in Other]
Green Materials
Aisti, a Finnish startup, raised €29m in Series A funding. They have developed an acoustic tile made from wood fibers offering a sustainable alternative to mineral wool tiles at a similar price. More here.
Digital Twins
Terria, an Australian startup, raised $3m in Seed funding. They are developing a geospatial platform which streamlines the creation of digital twins (virtual replicas of physical spaces) of buildings and streets to entire cities and regions. It helps governments and enterprises answer complex ‘what if’ scenarios to guide decision making in areas such as urban planning or environment management. More here.
Notes:
Terria was spun out of CSIRO which is Australia’s government research agency.
The process of commercialising research and building a startup using research IP is incredibly complicated and often fails for a number of reasons.
To explore how to successfully commercialize research in construction, I recently chatted to Matthew Barbuto, a co-founder of Ynomia, a Brick and Mortar Ventures backed startup which spun research out of CSIRO.
Ynomia was built around a technology called BLEAT (Bluetooth Low Energy Asset Tracking for supply chains and workplaces). The team successfully scaled it from a lab environment to construction sites.
BLEAT was used to create a “connected jobsite,” providing real-time visibility and tracking of personnel, materials, and equipment on site.
However, Matthew highlighted the challenges of validating the Technology Readiness Level (TRL) of the research prior to purchasing the IP.
TRL is a framework used to assess the maturity of a technology, ranging from initial research (TRL 1) to fully deployed and operational systems (TRL 9).
When Ynomia acquired BLEAT, it had only been tested in a lab but required significant work to be deployed and operational on a construction site.
The challenge was that during the acquisition phase BLEAT had a pending patent meaning the team couldn’t review all of the intellectual property (IP) to make an accurate TRL assessment.
A proxy for identifying TRL can be evaluating how much internal funding research has received.
More funding often correlates with a higher TRL, as the research has passed internal checkpoints for eligibility and viability.
Another common challenge is the “chicken-and-egg” problem of IP acquisition:
Founders may need to pay a royalty on future revenue to acquire the IP. This can deter VCs, who see it as reducing potential returns.
Alternatively, founders can offer a higher upfront payment for a reduced royalty (paid through VC funding), but this requires paying before fully understanding the IP’s potential. This can deter a VC as the core technologies capability is unknown.
This is where venture capital firms like Main Sequence can help. Their mission to address the “valley of death” between research and commercialization providing critical support for founders navigating these challenges.
Additional side note:
We are going to release this conversation as part of a limited podcast series in conjunction with Formwork Labs, a construction tech accelerator. Alice Leung, VC at Brick and Mortar Ventures and I are co-hosting it.
Bidding
GovSignals, a New York startup, raised $5.5m in Seed funding. They use AI to help clients find and bid on government contracts pulling large volumes of structured and unstructured data including meeting minutes and budgetary reports to help companies identify federal, state or local contracts pre-RFP. More here.
[View open jobs - 1 role in Sales, 1 role in Customer Success, 1 role in Software]
Notes:
Tools like GovSignals are incredibly valuable in the bidding process for construction contracts.
For major infrastructure projects (and even smaller ones), there is often a preferred provider known prior to the RFP being released.
To become this preferred provider, firms must stay informed about upcoming government contracts.
They do by regularly catching up with their government counterparts.
When a potential project is mentioned, the process typically unfolds as follows:
The opportunity is captured in the internal CRM, reviewed, and, if deemed feasible, a bid team is formed.
The team’s role is to understand the client’s needs, project scope, and requirements.
Early intelligence allows the firm to anticipate project needs and address gaps in their own capabilities.
For example, if the project involves building a bridge, the firm might have strong expertise in structural design but lack geotechnical or foundation design capabilities.
With early awareness, the firm can engage geotechnical subcontractors or other specialists before competitors, ensuring a stronger delivery team.
GovSignals enhances this process by providing earlier insights into upcoming projects, enabling firms to begin strategic conversations and assemble their teams ahead of the RFP stage.
High Resolution Imagery
Spexi, a Vancouver startup, raised $11.5m in Series A funding. They have developed an ultra-high resolution drone imagery network which uses blockchain technology to incentivise pilots to contribute. More here.
[View open jobs - 1 role in Customer Success, 1 role in Other]
Notes:
This solution is interesting as it provides a high quality and more up to date alternative to traditional providers such as Nearmap.
Nearmap provides historical satellite data which allows users (e.g. governments, design consultancies) to view high quality imagery of a location as well the changes over time.
I’ve used it at every firm I’ve worked for in a variety of tasks including asset management where we view roadway changes over time to understand when asphalt overlays or maintenance patches were laid and how often maintenance crews are going through.
Spexi’s solution offers an improvement on satellite data which often doesn’t have the resolution required by incentivising private operators to upload their data.
Being able to access this dataset vs hiring your own drone team is a cost saving and Spexi have found traction in the infrastructure inspection and smart cities segments.
Pixxel, an Indian startup, raised $24m in Series B extension funding. They are building a constellation of hyperspectral imaging satellites which capture detailed images of Earth and have found traction in the construction progress monitoring vertical. More here
Notes:
Hyperspectral imagery allows for deeper detail and insights vs conventional satellite imagery.
This includes being able to identify specific materials or substances. For example it can distinguish between different types of vegetation, minerals, or even subtle changes in soil composition.
Vertically integrated construction firms (design and construction)
SolarSquare, an Indian startup, raised $40m in Series B funding. They offer a full stack service for the delivery of residential rooftop solar panels including the design of the system, permitting approval, installation, financing and after sales service. More here.
Notes:
India has a goal of achieving 500 GW of renewable energy capacity by 2030 with solar expected to contribute ~280 GW.
Nscale, a London startup, raised $155m in Series A funding. They design, develop and construct data centres powered by renewable energy tailored for AI applications. More here.
Notes:
While not quite ‘ConTech’ it is fascinating that booming construction verticals have focused startups which are able to raise large venture dollars.
Example construction categories which have focused startups designing, constructing and (at times) operating include AI data centres, solar park development, battery parks and a little in hydropower / wastewater treatment.
I have yet to see one in the grid infrastructure / transmission space though there is an argument that Octopus Energy (UK power supplier) which operates solar parks and builds out transmission infrastructure is an example of this.
Modular Construction
Wood_Space, a German startup, raised €10m in Series A funding. They have developed a sustainable 3D and 2D modular construction system which primarily uses wood. More here.
[View open jobs - 1 role in Construction, 1 role in Other]
Trades
ServiceTitan, a Californian startup, raised $624.8m in its IPO. They provide financial and customer management software for residential and commercial contractors in a variety of trades which helps them to improve productivity and margins. More here.
Building Decarbonization
Next Sense, a Dutch startup, raised €11.5m in Series A funding. They are developing a platform for smart buildings which monitors energy usage allowing for control and mitigation strategies to be implemented and to guide investment spending. More here.
[View open jobs - 1 role in Project Management]
Out of Stealth
Siiv, a San Francisco startup, emerged out of stealth. They are building an automated payment application review system (a ‘CFO suite’) for construction. View their website here.
Policy and Regulatory Changes
DOE Loan Programs Office races to get cleantech money out as Trump looms
The DOE announced up to $2.2 billion in funding for two regional clean hydrogen hubs.
Electric vehicle manufacturer Rivian received a conditional commitment for a $6.6bn loan to construct a new EV plant.
Eos Energy Enterprises closed a $303.5 million loan guaranteed by the DOE to expand the company's manufacturing capacity for zinc-based long-duration energy storage systems.
Electric vehicle charging startup EVgo secured a $1.25b loan to install 7,500 public chargers at 1,100 charging stations across the U.S. over the next five years.
Related:
Manufacturing construction spending increased 20.5% over 12 months
The U.S. Department of the Treasury and the IRS released final rules for the Section 48 Energy Credit.
The rules enable investors to claim a tax credit of ~30% of the cost of a renewable energy project they support, helping to advance clean energy investment and development.
Offshore wind developers can now claim credits for subsea cables and transmission equipment
Geothermal heat pump installations have gained clarity on ownership structures.
Biogas and RNG projects benefit from expanded eligibility.
Hydrogen storage requirements have become more flexible.
Making a $1B investment in the US? Trump pledges expedited permits — but there are hurdles
President-elect Donald Trump is promising expedited federal permits for energy projects and other construction worth more than $1 billion.
Trump did not specify who would be eligible for accelerated approvals or how laws requiring federal agencies to consider environmental impact would be overcome.
Notes:
It’s often noted that America can’t build as fast as they used to due to regulation.
This was emphasised by Brian Potter (Construction Physics) in an interview with Derek Thompson (The Atlantic) on why it’s so expensive to build stuff in America.
“At a very high level, it’s basically a case of we’ve steadily made it more and more difficult to build things in the U.S. with rules and regulations, and have not had commensurate technology and productivity increases that have been able to offset that.”
A great example of how we can still build quickly is Pennsylvania's repairs of the I-95 after a bridge was destroyed due to a tanker fire.
They were able to reopen the bridge in 12 days by ensuring environmental permits that normally require months could be secured in days: Can I-95’s Repairs Teach Us to Build Faster? or How to Fix a Country in 12 Days
US DOT releases ‘Climate Strategies that Work’
The Playbook is a guide for implementing the most effective strategies for reducing transportation sector greenhouse gas emissions.
It provides a menu of 27 options for climate action planning at the State, Tribal, regional, and local levels.
The 27 options are in four main buckets: Active Transportation, Electric Vehicle Charging Infrastructure, Freight Operational Strategies, and transit-oriented development (TOD).
Feds release $850M to fix aging water infrastructure in the West
The funding will go to 77 projects aimed at revitalizing aging water delivery systems across the West.
These projects will improve water conveyance and storage, increase safety, improve hydropower generation and provide water treatment as well as replacing equipment for hydropower production and providing vital maintenance to aging buildings.
OSHA to Require Well-Fitting Construction Gear in New Rule
Construction companies will need to give their employees well-fitting safety gear starting in January.
The requirement ensures that employers provide personal protective equipment such as gloves, high-visibility vests, goggles, fall protection harnesses, and helmets that “properly fit” the worker.
The change is to ensure that safety equipment better fits women in the industry.
New York Clears the Way for 80,000 Homes. It's a Start.
The city council has approved the largest rezoning effort since 1961.
The new plan will permit a wide array of offices, basements, backyards and church parking lots to be converted into apartments.
Five-story buildings can be erected near train stations and commercial districts.
Minimum parking requirements will be scaled back.
New law requires NY contractors and sub-contractors to register with NYDOL
Contractors will now have to register before submitting any new bids or begin work on a covered project on or after December 30, 2024.
Sub-contractors need to register before starting any new work on a covered project as well.
5 community-scale geothermal systems to be built with $35M from DOE
The selected projects will help decarbonize buildings in Chicago; Ann Arbor, Michigan; Framingham, Massachusetts; Hinesburg, Vermont; and Shawnee, Oklahoma.
The aim is that these five projects will help other U.S. communities see how they can leverage energy underground to heat and cool buildings.
Toronto considers maximum temperature for apartments (Canada)
City law mandates a minimum temperature of 21 C in winter but lacks a similar rule for cooling in summer.
The proposed bylaw would require landlords to maintain indoor temperatures in rental units below 27 C.
If approved, the regulation will take effect on April 30, 2025.
New York state authority, union partner on energy efficiency worker training
The New York State Energy Research and Development Authority and the Finishing Trades Institute of New York are partnering on training glaziers.
These workers fit glass into windows and doors, on energy-efficient building envelope technologies.
The training contract awarded over $550,000 to develop 10 training modules it will add to the existing glazier curriculum.
Nearly 1,000 pre-apprentices, apprentices and journey workers will be trained through the contract.
Alberta releases new rules and no-go zones on wind and solar projects (Canada)
Renewable energy projects won't be allowed on top-grade agricultural land unless developers can prove the projects can productively coexist with livestock and crops.
There is a prohibition on wind projects within a specified 70,000-square-kilometre "buffer zone" that surrounds the Rocky Mountains and reaches to the western half of Calgary.
Renewable, and non-renewable, electricity projects located in other select areas will need to be assessed for their effect on landscape views before possible approval.
National Infrastructure Projects & Priorities
US
Largest solar and energy storage project in U.S. achieves regulatory approval
The project, located in eastern Oregon, is a proposed 1.2 GW solar and 1.2 GW, 7.2 GWh energy storage facility.
The project also entails the construction of an interconnection substation, six collector substations, four operations and maintenance buildings, up to 9.5 miles of 230 kV overhead transmission lines.
Micron Gets $6.2 Billion Chips Award to Spur Plant Expansion
The Biden administration has reached a final agreement to give Micron Corp. nearly $6.2 billion in subsidies.
The funding came from the 2022 Chips and Science Act.
Micron is the sole American maker of so-called high bandwidth memory chips, which handle data storage and are essential for AI.
Micron’s US expansion includes one new factory in Idaho and at least two plants at a greenfield site in New York.
These together comprise a roughly $75 billion investment through the end of the decade.
China
China to Set Another Solar Record Even as Industry Struggles
The country will install 230 to 260 gigawatts of solar capacity this year.
That will top the record of 217 gigawatts set last year, and is an increase from the group’s February forecast of 190 to 220 gigawatts.
China green lights a game-changing new railway through Central Asia
The 523km (325-mile) line which will connect Kashgar on China’s northwestern frontier with several cities in Kyrgyzstan and Uzbekistan.
The Kyrgyzstan section has a planned investment of US$4.7b and construction is expected to finish by 2030.
India
India Outpaces China in Green Investments as Renewables Surge
India has outpaced China as a destination for clean technology funding in recent months.
Deals worth about $2.4 billion were completed in the third quarter.
The momentum is being driven by India’s push to build out local clean energy capacity to limit reliance on China.
Hyperloop: India completes construction of its first test track
India has completed its first Hyperloop test track, measuring 410 meters.
Hyperloop trains are designed for speeds up to 1,100 kmph, with an operational speed of around 360 kmph.
The trains will move in a frictionless, vacuum-sealed environment, enabling faster travel and energy efficiency.
Notes:
Hyperloop systems have been tested but yet to be successfully commercialized.
Middle East
Abu Dhabi seeks private sector partnership to fund infrastructure projects worth $123 billion
Abu Dhabi will need private sector investment to develop Dh450 billion ($122.52 billion) worth of infrastructure projects in the next five to 10 years.
These projects include road networks, transport, schools and hospitals.
Africa
Africa Infrastructure Funder Sees $3 Billion of Projects in 2025
Africa Finance Corp. plans to invest more than $3 billion in projects.
The aim is to boost the region’s appeal as a source of key metals and help it gear up for more open trade.
It will prioritize advancing existing projects including the multimillion-dollar railway linking mines in Zambia to the port of Lobito in Angola.
It’s also looking for agricultural, electrification, eco-tourism, food-security and renewable-energy projects.
Big Tech
Google kicks off $20B renewable energy building spree to power AI
Google and its partners aim to build $20 billion in renewable-energy and energy-storage assets by 2030 that will be “colocated” with data centers.
It signed a deal with renewable developer Intersect Power and investment fund TPG Rise Climate to spin up enough carbon-free power to drive several gigawatt-scale data centers.
The hope is that the arrangement would help the data centers and renewable power parks get connected quickly.
There are 11,860 active requests in the U.S. `from power producers wanting to connect with the grid.
News
ConTech landscape in Southeast Asia (Zacua Ventures)
State of Built World Tech (noa ventures)
Related:
Alberta tech minister wants $100B in AI data centre infrastructure built over next 5 years
Exxon Plans to Sell Electricity to Data Centers
The country’s largest oil company is designing a natural gas power plant outfitted with carbon capture technology to meet the power demand of technology companies.
How Madrid built its metro cheaply
Google Introduces A.I. Agent That Aces 15-Day Weather Forecasts
The model is claimed to outperform other models 97% of the time.
It claims to provide better forecasts for day-to-day weather and extreme events up to 15 days in advance.
Notes:
This assists with the planning and scheduling of construction activities.
The Future of BIM: How AI Agents Can Design Buildings Through Natural Language (AI in AEC)
How to manage subcontracts amid Trump’s immigration plans (Construction Dive)
Data centers are driving US power demand to hard-to-reach heights
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.