Last Week in ConTech - 17 February 2025
Do we really need another ConTech startup?
Deep Insight: Do we really need another ConTech startup?
This week on Linkedin, KP Reddy, Partner at Shadow VC, had a take on Construction Tech.
He stated:
In construction tech there is a glaring massive business opportunity…the system integrator.
Construction companies do not have resources to deploy innovation on a project by project basis at scale…with so many point solutions the contractor needs an integrated approach to adopt.
He ended with a call for startups solving this solution.
It highlights a growing trend in construction tech where, while we have more solutions entering the marketplace, we lack the capability to effectively integrate and adopt them at scale. Many firms don’t have an enterprise strategy related to innovation resulting in a piecemeal approach which varies from project to project.
As an engineer, it means I use ProjectWise to manage CAD files on one project, Sharepoint for another and then on one I use our local server. And that's all within this same company.
This challenge is incredibly important for teams to solve but I suspect that it is difficult to execute–to integrate new solutions at scale, you need a large dedicated training workforce.
My suspicion is that adoption of technology in the industry will be catalyzed by the rise of new entrants. It’s a phenomenon which Packy McCormick of Not Boring speaks to in his piece, Vertical Integrators as he described how The Ford Motor Company and General Electric were structured.
They didn’t make a breakthrough discovery; rather, their innovation was integrating multiple new technologies into a cohesive system, allowing them to operate more efficiently and gain a structural advantage over incumbents. These companies:
Integrate multiple cutting-edge-but-proven technologies.
Develop significant in-house capabilities across their stack.
Modularize commoditized components while controlling overall system integration.
Compete directly with incumbents.
Offer products that are better, faster, or cheaper (often all three).
These integrators face immense risk. While the tech might be proven, they need to validate they can integrate it into a new system.
Just as Ford and GE transformed their industries by integrating new technologies, we don’t necessarily need another traditional software startup selling to the industry. We need a vertical integrator that builds, integrates, and scales innovations into a seamless system developing a fundamentally better way to build.
In this issue there are:
13 Startup Fundings
14 Policy and Regulatory Changes
11 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
9 News articles
34 new jobs posted - view here
Reading time: 12 min
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Startup Funding
Material Procurement
BRKZ, a Saudi Arabian startup, raised $8m in Series A2 funding (Series A1 funding was $8m in March 2024). They simplify the process of procuring building materials and equipment for contractors and manufacturers by operating a tech enabled marketplace with transparent pricing and providing tailored financing solutions. More here.
Compliance
AI-BOB, a Swedish startup, raised €2m in funding. They are building an AI powered compliance platform which helps ensure construction projects comply with regulations, environment requirements and industry standards. More here.
[View open jobs - 1 role in Software]
Notes:
They offer a plugin which automates the review of building regulation and integrates directly into architectural software like Revit.
Payments
Buildnow, a Saudi Arabian startup, raised $9.7m in Seed funding. They offer a digital Buy Now Pay Later platform for construction materials which bridges cash flow gaps, offers tailored credit terms and upfront payments to SME suppliers. More here.
[View open jobs - 2 roles in Sales, 1 role in Marketing]
Beam, a San Francisco startup, raised $11m in Series A funding. They are building a platform designed to help construction firms manage their finances including generating and marking up proposals, managing change orders, issuing invoices, accepting payments and paying subcontractors as well as offering high yield cash management accounts. More here.
[View open jobs - 1 role in Sales, 1 role in Customer Success, 1 role in Software]
3D Printing
Icon, a Texas startup, raised $56m in Series C funding. They use 3D printing to build homes and have a multi-storey robotic construction solution. More here.
[View open jobs - 1 role in Operations, 2 roles in Software]
Workforce Management
Sitemetric, a Texas startup, received funding (undisclosed). They operate a connected jobsite and workforce platform providing solutions such as smart badging, digital onboarding, real time location systems, mass communication and more with traction in the commercial construction sector. More here.
Building Decarbonization
Nido, a Spanish startup, raised €5m in funding. They are developing a platform to streamline the marketing, design and installation of heat pump systems. Their services include the development of a 3D BIM model for each installation, assisting with rapid quoting and design as well as providing installation kits for contractors and connecting them to suppliers and customers more efficiently. More here.
[View open jobs - 1 role in Sales]
Ampotech, a Singaporean startup, raised Seed funding (undisclosed). They have developed an AI enabled internet of things (IoT) solution which enables building managers in achieving energy efficiency and optimizations. More here.
Architecture
Mattoboard, a Las Vegas startup, raised $2m in funding. They have developed a platform for architects and interior designers to create realistic 3D mood boards using their library of virtual materials or uploaded products. These boards simulate real life qualities such as showing how surfaces and textures reflect light, the metallicness of a surface, how shadows are displaced replacing the traditional physical sampling process. More here.
Alternative Site Power Systems
Ana, a Nevada startup, raised $50m in funding. They provide mobile power and air solutions including hybrid energy systems combining generators with energy storage technology which are used on construction sites. More here.
[View open jobs - 1 role in Sales, 1 role in Marketing, 1 role in Software]
Grid Tech
Ionate, a London startup, raised $17m in Series A funding. They develop a hardware and software solution which replaces transformers in electrical grids with a high tech equivalent able to spot and fix power disturbances in real time. More here.
Notes:
Transformers are a key part of the electricity grid required where electricity is consumer, generated or moved.
This critical technology hasn’t significantly changed in over 100 years.
With the rise in electrification, we are facing a critical shortage 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.
Gridraven, an Estonian startup, raised €4m in funding. They have developed AI driven software to provide dynamic line rating which can help operators increase the capacity of existing transmission lines by up to 30%. More here.
Other
Renew Risk, a London startup, raised £5m in funding. They are building an energy risk modelling platform which helps stakeholders such as asset managers assess the impact of natural disasters on renewable energy projects such as offshore wind and solar farms. More here.
Notes:
Equal Ventures recently released their thesis: The Age of Existential Risk
In this they state that climate investment has moved from ‘ClimateTech’ to ‘ClimateRisk’ which is focused on solutions relating to risk and security.
This includes protecting companies, individuals and infrastructure from climate induced catastrophic economic and physical loss.
This is affecting the built world specifically in:
Energy instability.
Weather related outages account for 80% of major US power failures with $603b in weather related damages.Infrastructure Vulnerability
Weather related physical data to real estate and critical infrastructure are driving up insurance premiums and eroding the value of assets.
This means that property and asset owners are recognising that they must make changes to improve the resiliency of their portfolio to maintain insurability and low costs.
A more active approach must be taken to risk mitigation due to the worsening instances of climate related events.
This will have an impact on contractors focusing on adaptation as well as restoration verticals.
Policy and Regulatory Changes
Global
ICC eyes building codes for 3D printing
The International Code Council is developing a new set of guidelines that will apply to what it calls 3D Automated Construction Technology for 3D Concrete Walls.
The standard will address requirements for 3D automated construction technology and 3D concrete used to build interior and exterior 3D concrete walls.
It will cover components built with or without structural steel reinforcing, used as bearing walls, non-load bearing walls and shear walls in one-story or multi-story structures.
US
FEMA Quietly Eases Rules Meant to Protect Buildings in Flood Zones
The Federal Flood Risk Management Standard says that when public buildings in a flood zone are damaged or destroyed, those structures must be rebuilt in a way that prevents future flood damage if they are to qualify for FEMA funding.
That could include elevating a structure above the expected height of a future flood or relocating it to a safer spot.
The rule is now “under review per the president’s executive order.”
CIRCUIT ACT: Bill to Boost U.S. Transformer Production
Two senators have introduced a bill to boost U.S. transformer production.
The bill offers U.S. transformer manufacturers a 10% tax credit.
The goal of this tax credit is to incentivize domestic transformer production.
In turn, this will increase the U.S.’s supply of transformers.
Notes:
There is a critical shortage of key grid infrastructure, delaying the connection of new renewable power plants to the grid.
As noted last week, there are over 11,000 projects waiting for studies to determine if the grid can handle additional loads.
This backlog is a major bottleneck for renewable energy expansion.
One way to overcome this bottleneck is to accelerate grid infrastructure development and increase the supply of critical materials.
Related:
DOD halts PLAs on construction projects
The Department of Defense has ordered its contracting officers to halt the use of project labor agreements on “large-scale construction projects”.
Under a Biden executive order, this required project labor agreements on projects receiving $35 million or more in federal funds.
New Jersey puts brakes on offshore wind projects
New Jersey is backing away from financing two offshore wind projects which were given the green light by the U.S. Department of the Interior last year.
This follows an executive order temporarily halting offshore wind lease sales in federal waters and pausing the issuance of approvals, permits and loans for both onshore and offshore wind projects.
More than 73 gigawatts of offshore wind capacity was under development before Trump issued his executive order.
California high-speed rail project faces $6.5B shortfall, possible federal investigation
The OIG report said it is “increasingly unlikely” that the authority will be able to finish that segment by its target date of 2033.
The California project could also face a federal investigation and President Donald Trump said “The train that’s being built between Los Angeles and San Francisco is the worst-managed project I think I’ve ever seen.”
Europe
EU scraps proposed AI rules in wake of Paris summit
The European Union has scrapped proposals that would have empowered consumers to claim compensation for harm caused by artificial intelligence.
Notes:
Scrapping the rule empowers companies to build in Europe.
This appears to be in line with the EU’s aim of making Europe an ‘AI continent.’
The goal involves investment in developing complex AI models which will require large scale data centres and increases in power generation.
This week, they announced over €200b of investment with a €20b fund for AI gigafactories (see below).
European airlines push back hydrogen ambitions
Airlines, airports and other parts of the aviation sector have committed to reaching net zero carbon emissions by 2050.
In an update to a net zero road map, industry groups said they expected hydrogen-powered planes to be responsible for just 6 percent of net emissions reductions by 2050.
This is down from 20 per cent in 2021.
Airbus noted that the availability of hydrogen produced from renewable energy sources at scale, had been “slower than anticipated”.
Notes:
This will have an impact on the development and adoption of hydrogen refuelling infrastructure.
UK
Government rips up rules to fire-up nuclear power
Reforms to planning rules will allow Small Modular Reactors to be built in the UK.
This will allow more nuclear power plants to be approved across England and Wales.
At a global level, China is constructing 29 reactors, and the EU has 12 at the planning stage.
Startups on alert as UK government opens AI growth zones bidding
The growth zones are designated areas to ramp up the UK’s AI infrastructure and technology efforts.
The government said it was looking for bids from areas with large existing power connections and a vision on how energy capacity can be increased.
The first site has been confirmed as in Culham, Oxfordshire.
Government invests £300 million in active travel in England
The £291 million package will fund 300 miles of new footpaths and cycle tracks to encourage 30 million more cycling and walking journeys per year.
Belgium
Belgium’s New Government Revives Nuclear Energy Plans, Aims for 4 GW Capacity
The plans will aim to “restart” Belgium’s nuclear industry and see the operating life extension of existing nuclear plants and the construction of new reactors in the coming years.
It plans to repeal 2003 legislation that mandated a nuclear phaseout in Belgium.
China
China hits back as Trump’s tariffs go into effect
These include a levy of 15% tax on certain types of coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks.
Notes:
A new trade war and escalating tariffs would have an impact on the cost of construction materials.
South Korea
Seoul government abolishes direct construction requirements to boost public projects
First, it will abolish the mandatory requirement for '50% direct construction'.
The Seoul government has previously required direct construction obligations to address the habitual subcontracting issues of primary contractors lacking direct construction capabilities.
They will instead prioritize assessing the direct construction ratio in this year's bidding process.
For construction projects with a thorough review and comprehensive evaluation bidding system valued at over 3 billion won, a direct construction ratio of 20% can earn full points.
There are additional deregulation plans mentioned in the article.
National Infrastructure Projects & Priorities
US
Amazon doubles down on AI with a massive $100B spending plan for 2025
The “vast majority” of the $100 billion in CapEx will go toward AI capabilities for its cloud division.
It’s a rise from the $78 billion in capex that Amazon spent in 2024.
Meta is planning to spend at least $60 billion on capex in 2025, mostly on AI.
Microsoft announced last month that it would spend $80 billion on AI data centers in 2025 alone.
Google plans $75B investment to build out cloud AI capacity
Google will direct the majority of its CapEx to relieving capacity bottlenecks through upgrades to infrastructure, including cloud servers and data centers.
The company spent $52.5 billion in capital expenditures in 2024.
Meta confirms ‘Project Waterworth,’ a global subsea cable project spanning 50,000 kilometers
Meta has confirmed a new subsea cable which, when completed, will be the world’s longest subsea cable project.
The network will connect five continents, with landing points in the United States, Brazil, India, South Africa, and other key regions.
Geopolitics is one of the major factors in the market influencing Meta to build its own subsea infrastructure.
India
India Builds 101,900 km of National Highways Since 2014
The average annual highway construction during 2014-2024 has increased by about 130% compared to the previous decade (2004-2014).
Currently, 1,366 national highway projects, spanning around 32,366 km, are under construction across the country.
These projects are in various stages of completion and are expected to be finished in phases by the financial year 2028.
India Surpasses 100 GW Solar Capacity
India’s solar power capacity has increased 3,450% in the past decade, rising from 2.82 GW in 2014 to 100 GW in 2025.
In 2024 alone, India added 24.5 GW of solar capacity, doubling installations from 2023.
This achievement is a major step toward the country’s ambitious goal of 500 GW non-fossil fuel capacity by 2030.
India’s $67 Billion Infrastructure Gap Hampers Modi’s Gas Goals
India aims to more than double the share of gas in its energy mix to 15% by 2030.
Hitting the target would require gas consumption to rise threefold.
It will also require $67 billion of investment into everything from new pipelines to import terminals and last mile connections.
India currently uses roughly half of a nearly 23,573 kilometer-long gas pipeline network.
China
China's 2024 coal power construction hits 10-year high
China started construction on 94.5 gigawatts of coal-fired power in 2024, the highest volume of new builds since 2015.
China has retired more than 100 GW of obsolete coal-fired power in the last decade, however power shortage concerns have led to a spike in new projects since 2023.
China also commissioned 356 GW of wind and solar last year, meeting its 2030 target of 1,200 GW of renewable capacity six years ahead of schedule.
Europe
EU launches InvestAI initiative to mobilise €200 billion of investment in artificial intelligence
The EU launched InvestAI, an initiative to mobilise €200 billion for investment in AI, including a new European fund of €20 billion for AI gigafactories.
This large AI infrastructure is needed to allow open, collaborative development of the most complex AI models and to make Europe an AI continent.
France
Macron signals investments of 109 billion euros in French AI by private sector
The financing includes plans by Canadian investment firm Brookfield to invest 20 billion euros in AI projects in France.
It also includes financing from the United Arab Emirates which could hit 50 billion euros in the years ahead (see below).
UAE to invest billions building new AI data centre in France
France and the UAE have announced a partnership to build a 1GW AI data centre, representing up to €50bn in investments.
The French government also announced a new set of objectives as part of its AI strategy including boosting the country’s AI infrastructure.
Up to 35 sites have been identified across France as potential spots for future data centres.
Baltic
Baltic nations cut ties to Russian power grid, prepare to link with EU
Lithuania, Latvia, Estonia disconnected their electricity systems from Russia's power grid.
They will now integrate with the EU grid.
This is part of a plan designed to integrate the countries more closely with the European Union and boost security.
The Baltic countries spent nearly 1.6 billion euros ($1.66 billion) since 2018 to upgrade grids to prepare.
For Russia, the decoupling means its Kaliningrad exclave, located between Lithuania, Poland and the Baltic Sea, is cut off from Russia's main grid, leaving it to maintain its power system alone.
Investment funds
BlackRock and Microsoft are reportedly planning a $30B AI-focused megafund
The fund will focus on creating data centers and funding energy infrastructure to support AI.
News
Record $371.9M Raised for Low-Carbon Cement in 2024
AI’s Electricity Demand Means Cool New Tech Is Coming to Boring Grids (Bloomberg)
The rush to power data centers is helping startups developing superconducting cables and real-time grid information find new investors.
How Will the Trump Tariffs Affect Construction? (Construction Physics)
California’s insurer for people without private coverage needs $1 billion more for LA fires claims
The US grid may have over 100 GW of load to spare
Skanska CEO sees ‘very stable’ US operations (Construction Dive)
Arup guide to EU decarbonisation legislation
Arup is a global engineering design consultancy.
Meta’s Hyperscale Infrastructure: Overview and Insights
A look at Meta's planetary-scale computing infrastructure, including some key lessons from its development, as the company pursues its vision of “all global data centers as a computer.”
Cities Can Cost Effectively Start Their Own Utilities Now
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.