Last Week in ConTech - 16 September 2024
Platform vs Point solutions + geopolitics driving national energy infrastructure 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:
13 Startup Fundings
8 Policy and Regulatory Changes
1 US election policy update
8 New National Infrastructure Projects & Priorities
0 New investment fund
2 Acquisition
9 News articles
69 open jobs - view here
Reading time: 14 mins
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Startup Funding
Building Decarbonization
Carbon Reform, a Philadelphia startup, raised funding (undisclosed). They offer solutions for commercial buildings to decarbonize their existing HVAC systems and their flagship product, Carbon Capsule, a retrofit carbon reduction system for commercial HVAC allows buildings to enhance air quality, reduce emissions and lower energy costs. More here.
Bling Energy, a Portuguese startup, raised €2m in Seed funding. They provide subscription based solar panel installation services allowing building owners to save on their energy bills without investment. More here.
[View open jobs - 1 role in Sales, 1 role in Operations]
Notes:
To meet climate targets, the integration of renewable energy into residential homes is required.
A key issue is that while renewable technology is maturing and becoming more affordable, many households lack the capital for purchase and installation.
Startups are increasingly focusing on innovative financial mechanisms or rethinking delivery and installation models to reduce upfront costs.
Construction Monitoring
Track3D, a San Francisco startup, raised $4.3m in Seed funding with investment from Shadow Ventures. They have developed a reality data capture platform which serves as a central hub for all visual data integrating content from drones, 360 cameras, laser scanners and mobile devices into a single unified system making it easier to monitor construction progress. More here.
[View open jobs - 3 roles in Software]
Notes:
The press release includes a statement from Thai Nguyen, Director of Innovation at Hensel Phelps: "Our partnership with Track3D marks a pivotal shift from juggling multiple reality capture solutions to embracing a unified, standardized platform."
This comment highlights how the construction tech industry is experiencing a wave of consolidation driven by customer preferences.
This trend is reflective of a broader, industry-agnostic pattern in the software adoption cycle, often referred to as unbundling and bundling.
A relevant example can be found in the travel and entertainment sector: initially, Cabcharge and Taxis functioned as a platform solution.
Uber then entered the market, addressing a specific pain point with a point solution (ride-hailing).
As Uber grew, they expanded their services into adjacent areas that required the same fundamental concept (moving from point A to B), such as food delivery—evolving into a platform solution.
This example illustrates how, over a decade-long cycle, industries move between periods of point and platform solutions.
Initially, consumers were frustrated by the lack of depth and flexibility with the original platform.
They gravitated towards point solutions, which offered more value in addressing specific needs.
However, over time, juggling multiple apps (e.g., Uber, Delivery Hero) became frustrating, leading to a preference for unified solutions, or "super apps" that allow them to complete various tasks in one place.
As these platforms eventually stop innovating, new point solutions begin to emerge again, continuing the cycle.
Related:
Site Autonomy / Robots
Optimotive, a Canadian startup, raised $2m in Seed funding. They build mobile robots for industries in extreme environments such as construction supporting tasks such as material handling, capturing site data (3D scans & 360 photos) and improving efficiency via cleaning and material handling. More here.
Finance
NetNow, a Toronto startup, raised CAD$1.8m in funding. They have developed a trade credit automation platform focused on providing business in lumber and building materials, electrical wholesale, HVAC, heavy equipment, roofing, general wholesale and distribution with a way to manage trade credit applications digitally. More here.
Design
Vind AI, a German startup, raised €3m in Seed funding. They have developed a platform for wind project design supporting screening, conceptual design and pre-feed stages allowing analysis and comparison of scenarios and business cases such as park layout, turbines, electrical systems, foundations, and mooring setups. More here.
Safety
SafetyCulture, an Australian startup, raised $75m in funding. They have developed a workplace safety and compliance platform offering solutions to the construction sector (amongst others) with features such as digitizing pre-start, inductions, easy incident reporting and telematics to track machinery. More here.
[View open jobs - 11 roles in Support, 5 roles in Product, 12 roles in Software, 3 roles in Finance, 3 roles in Marketing, 2 roles in Operations, 2 roles in HR, 9 roles in Sales, 2 roles in Other]
Rail
Purple Transform, a UK startup, raised £4.5m in funding. They have developed an AI rail data analytics platform which aggregates data from cameras and other sensors to identify and prevent safety incidents such as theft or trespassing. More here.
Notes:
Purple Transform has developed a 3-step customer onboarding process, which includes:
Step 1: Consulting with the client to identify their specific goals.
Step 2: Defining the technology and data required for their solution using Purple Transform's proprietary platform.
Step 3: Checking in regularly to ensure the solution is meeting the client’s business goals.
This straightforward process demonstrates how startups can effectively engage with customers.
Rather than focusing on booking demos and showcasing the solution’s potential, startups should prioritize customer discovery, spending time to understand each client’s unique pain points and needs.
Once this understanding is established, the platform can be introduced and tailored to meet those specific requirements.
This approach is more akin to consulting than traditional product sales, which can be especially valuable in industries like construction, where environments are often uncontrolled and lack standardization.
This approach fosters deeper relationships and supports long-term revenue growth from each client.
Given the project-based nature of construction, scaling within a company and deepening relationships is important for sustained revenue growth.
Additionally, since companies are likely to establish standardized internal processes, investing time early on to ensure process fit can support internal scaling.
Mobility Systems
Spare, a Canadian startup, raised $30m in Series B funding. They provide cities with technology to improve paratransit systems (public rides for disabled residents) and bring more on demand services into the mix. Their system integrates different types of transportation services (wheelchair accessible, on demand operators, ride-hail such as Uber) to match riders with the most appropriate services and operator for their needs. More here.
[View open jobs - 2 roles in Support, 3 roles in Software, 4 roles in Sales, 1 role in Product]
Notes:
New York’s MTA spent $517m on paratransit services in 2023, up from $412m the previous year.
Stakeholder Engagement
Alosant, a Montana startup, raised Series A funding (undisclosed). They are developing a customer experience platform for master planned communities offering solutions for the entire customer journey from supporting the buying and building process to marketing the vision and lifestyle of the community with user generated content. More here.
Site Development
Viability, a London startup, raised £500k in funding. They are developing homebuilding software which helps property developers to assess site viability, optimize opportunities and promote offsite construction methods by gathering planning policy data from local authorities and accurate build cost data. More here.
Notes:
The UK government has committed to build 370,000 houses each year.
Propcorn, an Austrian startup, raised €600k in Pre-Seed funding. They are developing a tool which allows property professionals to identify the maximum building potential of real estate. Users can select their address with the algorithm analyzing building plans and legal framework to provide new build potential. More here.
Other
PropEco, a UK startup, raised £275k in Seed funding. They have developed a platform which can assess the long term value of a property by identifying transition climate change risks, physical climate change risks and impact on wellbeing. More here.
Policy and Regulatory Changes
US to spend $7.3 billion on rural clean energy projects
The funding will be used to fund clean energy projects helmed by rural electric cooperatives.
It will be matched by more than $29 billion in private investments with a goal of building more than 10 gigawatts of clean energy.
The projects are funded by the Inflation Reduction Act’s (IRA) Empowering Rural America (New ERA) program and will prevent more than 43m tons of greenhouse gas pollution annually and support more than 16,000 construction jobs.
EU needs 'more nuclear,' European Commission president says
The European Commission President called for the European Union to be more self-sufficient in energy production.
Nuclear energy in the EU is disputed with France pushing for more public investment while Germany opposes it.
The Commission President stated Europe bought gas from Russia on the basis that economic interdependence was the ultimate source of security and this was supposed to be the guarantee that Moscow would never start a new war on the old continent.
Notes:
Geopolitical tensions and national security are an increasingly important driver in infrastructure development.
Record UK renewables auction gives boost to offshore wind
The auction supported a total of 131 wind, solar and tidal projects capable of generating almost 10 gigawatts (GW) of capacity.
The Labour government's plans to decarbonise the electricity sector by 2030 require a big increase in renewable power capacity such as wind and solar.
The country has a target of expanding offshore wind capacity to 60 GW by 2030 from around 15 GW now.
Massachusetts cities are quickly embracing new emission-slashing building code option
State lawmakers approved an optional stretch code last year aimed at lowering fossil fuel use.
45 municipalities covering about 30% of the state’s population have adopted the new guidelines.
Massachusetts has been a leader in using opt-in building codes to push for decarbonization of the built environment.
Chart: Texas plans to build the most clean energy of any state
Texas has become a clean energy juggernaut, due to its lax permitting regime, fast grid-interconnection process, competitive energy market, and ample amount of solar- and wind-friendly land.
As of July, the state intended to build 35 gigawatts of clean energy over 18 months, more than the next nine states combined.
NYC looks to kick its curbside EV-charging plans into second gear
The city won a $15M federal grant to build 600 curbside EV chargers throughout its streets.
It’s part of a broader push to build 10,000 curbside chargers in NYC by 2030.
In New York City, 30 percent of greenhouse gas emissions come from transportation and the majority of that pollution comes from passenger cars.
The charging network is in anticipation of a statewide law banning the sale of new gas-powered cars after 2035.
Washington hopes to advance clean building standards implementation with nearly $8M DOE grant
The grant will be used to develop and run the Building Efficiency and Clean Operations Network.
This aims to match technical experts with building owners who need support and resources to meet the building performance standard.
The program will allow approved architects and engineers to self-certify that construction application permits comply with the State Uniform Construction Code (UCC) and other applicable laws.
This will streamline an often-cumbersome permitting process.
US election policy update
Trump Says He Will Rescind Funds From Biden’s Climate Law
He has pledged to rescind unspent funding in the most definitive remarks yet on his intentions for the Inflation Reduction Act.
A full repeal of the law which would require approval by Congress.
The law provided hundreds of billions of dollars in tax credits and other incentives for clean energy projects.
He stated that if elected he would declare a national energy emergency to achieve a massive increase in domestic energy supply to bring gasoline below $2 a gallon and also reduce electricity prices.
Related:
National Infrastructure Projects & Priorities
US
Batteries are a fast-growing secondary electricity source for the grid
In the first seven months of 2024, operators added 5 gigawatts (GW) of capacity to the U.S. electric power grid.
In 2010, only 4 megawatts (MW) of utility-scale battery energy storage was added in the United States.
In July 2024, more than 20.7 GW of battery energy storage capacity was available in the United States.
Notes from EIA:
Energy storage systems are not primary electricity sources, meaning the technology does not create electricity from a fuel or natural resource.
Instead, they store electricity that has already been created from an electricity generator or the electric power grid, which makes energy storage systems secondary sources of electricity.
Energy storage systems use more electricity for charging than they provide when supplying electricity to the electricity grid.
Can a Closed Nuclear Power Plant From the ’70s Be Brought Back to Life?
The federal government and the state of Michigan are spending nearly $2 billion to restart the reactor.
When it reopens, Palisades will become the first decommissioned nuclear plant anywhere to be put back to work.
This is being driven by rising demand for electricity from AI server farms, and billions on offer in state and federal loans and tax subsidies for nuclear energy in infrastructure and green power investment programs.
In Iowa, NextEra Energy is considering reopening the Duane Arnold Energy Center, a nuclear plant that closed in 2020.
China's Belt and Road Initiative is the world's largest infrastructure finance program.
From 2013-2021, China provided $679 billion for infrastructure projects in transportation, energy, and three other sectors, while the U.S. provided $76 billion in the same sectors.
Projects financed through the BRI include power plants, railways, highways, ports, and telecommunications infrastructure.
Russia was the largest recipient of BRI assistance from 2013 to 2021.
France
France prepares to start up long-delayed Flamanville nuclear reactor
This is the first newly built nuclear reactor in 25 years and will be France’s 57th.
It was built 12 years behind schedule and ended up costing more than four times its initial budget at €13.2b.
India
Building India: Country Roads, Take Me...
India will spend 701.3 billion rupees ($8.4 billion) to build 62,500 kilometers of roads in rural areas over five years.
Funded 70% by the central government and the rest by states, this fourth edition of the rural roads scheme will connect 25,000 unconnected settlements.
Since it was launched in 2000, the rural road scheme has constructed and upgraded more than 704,000 kilometers of roads connecting around 172,000 settlements in India.
AM Green takes FID on large-scale green ammonia project in India
This is one of the largest green ammonia projects in the world with a planned output of one million tonnes per year.
They have secured the required 1,300 MW of round-the-clock carbon-free power enabled through 4,500 MW of solar and wind hybrid capacity in combination with 950 MW of pumped storage.
Most of its output will be exported to European markets.
Middle East
UAE's final unit of Barakah nuclear reactor hooked to grid: What we know
The Emirates is the only Gulf country with a nuclear power program.
It is seen as a key component of transitioning from oil to meet net zero goals by 2050.
Saudi Arabia also plans to develop a nuclear industry as part of its energy transition efforts. The country plans to add 17 gigawatts of nuclear energy capacity by 2032.
Africa
China offers Africa $51 billion in fresh funding, promises a million jobs
The funding will be over 3 years with backing for more infrastructure projects and the creation of at least 1 million jobs.
China is Africa’s biggest bilateral lender with countries owing $80b and Angola, Ethiopia, Kenya, Zambia and Nigeria accounting for over 50% of it.
Xi said China was ready to launch 30 clean energy projects in Africa, offering to co-operate on nuclear technology and tackle a power deficit that has delayed efforts to industrialize.
Acquisitions
Bentley Systems, a company which develops and sells computer software and services for the design, construction, and operation of infrastructure, acquired Cesium, a Philadelphia company which provides a platform for 3D geospatial data. More here.
Reece Group, an Australian distributor of plumbing, waterworks & HVAC-R (market cap: AUD$18b) acquired Shadowboxer, a venture studio and its subsidiary Southpaw, a web design agency. More here.
Notes:
According to the press release Shadowboxer is expected to continue to develop products for early stage startups while Southpaw will support rollout of Reece Group’s digital strategy.
The companies will sit in their Breakthrough Innovation Group alongside their VC arm, Superseed Ventures.
Superseed is one of the only built environment focused VCs based out of Australia.
News
They have become India's largest manufacturer of Autoclaved Aerated Concrete (AAC) blocks with 9 plants around the country.
Infra.Market is one of 17 construction tech unicorns.
The cohort includes:
Genia which generates engineering drawings using AI-powered generative design.
Kroo aggregates project information across various data silos to enable construction stakeholders to have greater visibility into their projects to make data-driven decisions.
Novl is an ERP solution for AEC firms centralizing project management, time tracking, change orders, RFIs, resource planning, and billing.
Tangible helps real estate owners, developers and general contractors to manage embodied carbon, helping them meet legislative requirements and chart a path to decarbonization.
Trunk offers offsite manufacturers one system to operate their manufacturing and site assembly, stripping out wasted time and quality defects.
Britain’s reliance on coal-fired power set to end after 140 years
Closure of the final plant at the end of September marks a critical step in decarbonising electricity by 2030.
1 in 3 US bridges needs major repair, replacement
In total, 36% or 221,800 bridges need repair and 76,175 should be replaced entirely.
The Geopolitics of Supply Chains
This report examines the factors that made China the leading choice for offshoring, the reasons behind supply chain shifts
It evaluates five countries—India, Vietnam, Mexico, Poland, and Thailand—that are becoming increasingly prominent supply chain alternatives in an evolving geopolitical landscape.
Notes:
This is valuable as it provides an indication of growth markets for construction infrastructure spending.
Google pilots heat resilience tool in 14 US cities
Google is piloting an online mapping tool to help city leaders understand how trees and highly reflective surfaces could help mitigate urban heat.
Notes:
These projects have generally been the domain of large engineering infrastructure consultancies.
Big Tech has an enormous amount of mapping data which could be used in novel ways to support the development of Smart Cities.
Israel turns to India again for recruitment of 10,000 construction workers
This is to address skill shortages in its infrastructure sector amidst its ongoing war with Hamas.
China to send sample bricks into space to test for building research base on moon
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.