Last Week in ConTech - 2 December 2024
New ConTech Corporate VC + Geothermal power plant 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:
8 Startup Fundings
11 Policy and Regulatory Changes
10 New National Infrastructure Projects & Priorities
3 New investment fund
4 Acquisition
5 News articles
31 new jobs posted - view here
Reading time: 15 mins
Does the email get cut off by your reading application? You can view the full version online here.
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Hey Everyone!
For last month I’ve been learning about how AI is used in Document Management and the trends affecting this.
This research was in conjunction with Bricks & Bytes who ran primary interviews with startups and industry experts while I helped collate a research report. At ~10k words, it’s easily the largest piece we’ve penned to date.
The value of this report is it has helped me to:
Understand the typical construction company AI adoption personas.
Craft clearer frameworks on AI solutions in construction.
So often we hear hype around AI and it is difficult to ascertain the differences between the truly innovative products and the simple ‘wrappers’ - a company which just adds a superficial layer of A.I. to their existing solutions.
In this report we share our views on the differences and a framework for determining when to build vs when to buy AI solutions as well sharing what an AI agent actually is. There is more in the report including a deep dive into 5 AI Document Management solutions currently offered on the market.
Honestly I’ve been pretty surprised by the number of reports sold already - as one of the first online sales / money related to Last Week in ConTech after writing for so long, it’s been a special and exciting moment.
If you’re interested in getting one, here is the link to buy one. Note, I do receive a share of the revenue as it has been a combined effort between us.
If you want to learn more or just chat AI - always happy to, please respond to this email!
Startup Funding
Finance
Constrafor, a New York startup, raised $14m in Series A funding. They have developed a supply chain finance and risk management tool helping GCs with procurement and subcontractor management including simplified invoicing, prequalification, discovery network of subcontractors. They also provide value to subcontractors such as an early pay program and providing a CFO suite of tools such as project based accounting. More here.
[View open jobs - 1 role in Finance, 4 roles in Software, 1 role in Marketing, 2 roles in Product, 2 roles in Sales]
Digital Twins
Predium, a German startup, raised €13m in Series A funding. They are developing a platform for ESG management building digital twins of buildings by augmenting existing data with AI, satellite images and 3D models which can be used to understand renovation priorities and optimization scenarios including costs and subsidies to guide investment decisions. More here.
[View open jobs - 1 role in Customer Success, 2 roles in Software, 2 roles in Data, 2 roles in Product]
Modular Construction
R2 Building, a Californian startup, raised investment (undisclosed) from Webcor Ventures. They are a modular construction company which has developed a non-combustible steel building system for high rise construction as well as steel framed accessory dwelling units and modular single family homes. More here.
Drones
Tekever, a Lisbon startup, raised €70m in funding. They have developed unmanned aerial vehicles which can be used for various types of data collection including infrastructure and asset monitoring. More here.
Notes:
Military technology and innovation has been rapidly advancing due to the need for capability development in the Ukraine war.
This is most obvious in the drone technology sector with uncrewed aerial systems (UAS) becoming an important weapon to gain asymmetric advantages
These military advancements have implications for the civilian and construction sectors and Tekever’s revenue model is reflective of that.
They develop drones controlling all aspects of operations from airframe design to manufacturing, avionics, software, data and AI.
It allows the development of modular drones which can be easily adapted for missions, a requirement for the shifting nature of the battlefield.
This flexible nature has allowed the company to run pilots and begin growing revenue in the infrastructure and asset monitoring sector identifying safety and environmental risks on critical infrastructure in a cost effective way.
It is an improvement on the use of manned helicopters which is used in some sectors (e.g. oil and gas infrastructure inspections).
Additional note:
The above touches on a strategy which is used by some ConTech focused VC and Corporate VCs.
They identify startups with proven products in adjacent verticals such as logistics, supply chain, manufacturing and military tech.
They filter these products to understand if they can be adapted to solve pain points in the construction context using their industry expertise and network.
They then run small scale trials using construction companies in their network (or LPs - their investors) to identify new revenue streams for the startup.
If successful, they’ll invest in the company with the funds being used to grow the new revenue streams
This provides value to both the startup and the investor:
The startup identifies a new revenue opportunity.
The investor is able to use their unique industry expertise to provide introductions, solve pain points for their LPs and increase the valuation of their investment.
I’ve noticed this trend occurring mostly in the clean energy sector as construction companies are attempting to decarbonize their sites (e.g replace diesel generators with clean alternatives).
HVAC
Etalytics, a German startup, raised €8m in Series A funding. They have developed an AI driven technology which provides energy management and intelligence to optimize heating, ventilation and cooling systems for complex energy systems used in industrial settings / buildings such as data centers. More here.
[View open jobs - 3 roles in Software]
Charging Infrastructure
Ample, a San Francisco startup, raised $25m in funding. They are building EV battery swapping infrastructure for both charging and the vehicle themselves. More here.
[View open jobs - 1 role in Finance, 1 role in Sales]
Notes:
Range anxiety has been one of the most significant barriers for electric vehicle (EV) adoption among consumers.
Companies have been working to overcome this through improving battery technology, including faster charging batteries and those with longer driving range.
The alternative is to use battery swapping technology.
Ample has developed a fully automated modular battery swapping infrastructure which delivers a 100% charge to any EV in under 5 minutes.
The use of battery swapping is interesting especially in heavy civil use cases where battery charge is used incredibly quickly.
When combined with the long charging time, it makes adoption challenging. Firms don’t want to take the program hit.
If this solution scales it would rethink how we build and deploy charging infrastructure.
For example, instead of placing chargers next to retail spaces (grocery stores, restaurants etc) so drivers can charge while completing activities, battery swapping infrastructure may be deployed more similar to gas stations (standalone infrastructure).
Related:
Other - Green material manufacturing
Hyperheat, a German startup, raised $3.7m in funding. They develop electric heaters which are designed to replace natural gas burners in industries such as cement. More here.
FPR Energy, an Australian startup, raised $15m in Seed funding. They develop concentrated solar thermal technology which stores sunlight as heat achieving temperatures up to 1,200°C enabling long duration energy storage and supporting the decarbonization of industrial processes such as cement production. More here.
Policy and Regulatory Changes
Major geothermal bills pass House, widening path for clean energy drilling boom
The CLEAN Act and HEATS Act remove many of the federal permitting regulations currently necessary to drill for geothermal power plants.
The CLEAN Act would require the Department of the Interior to hold a lease auction for geothermal drilling every year, and to get back to applicants within 30 days.
The HEATS Act, which largely exempts new geothermal wells from existing federal permitting laws, provided that less than half of their footprint is on federal land.
In particular, it exempts them from the National Environmental Policy Act and the Endangered Species Act.
Elon Musk and Vivek Ramaswamy: The DOGE Plan to Reform Government
Elon and Vivek shared plans to reduce the size and scope of the US federal bureaucracy.
It involves five areas:
Remove regulations that Congress never explicitly authorized, using recent Supreme Court decisions as legal backing.
Cut the number of federal workers through workforce reductions.
Stop federal spending that wasn't authorized by Congress, estimated at over $500b a year.
Improve cost efficiency in government procurement by conducting large-scale audits of old contracts.
Address waste at the Department of Defense, which has a budget of more than $800 billion and has failed its seventh consecutive audit.
Notes:
It’s often commented that America can’t build as fast as they used to due to regulation.
A great example of how this can be overcome to build quickly is Pennsylvania's repairs of the I-95 after a bridge was destroyed due to a tanker fire.
The estimate for a temporary fix was six weeks but they were able to reopen the bridge in 12 days.
One key way was by ensuring environmental permits that normally require months could be secured in days even going so far as to have the Pennsylvania Transportation Secretary stay on the job site to provide his personal sign off when needed.
Highly recommend checking out these articles: Can I-95’s Repairs Teach Us to Build Faster? or How to Fix a Country in 12 Days
FCC passes auto safety spectrum rules
The Federal Communications Commission (FCC) has voted to finalize new spectrum rules for cellular vehicle-to-everything (C-V2X) communications.
C-V2X will use existing cellular networks to send messages from vehicle to vehicle, vehicle to infrastructure, vehicle to cyclists, or vehicle to pedestrians to warn of each other's presence for safety purposes.
The decision on the proposed rule promotes “efficient use of 30 megahertz of spectrum” dedicated to Intelligent Transportation Systems, or ITS, in the 5.9GHz band.
It also codifies C-V2X technical parameters, including power and emission limits, technical parameters, and message priorities.
Notes:
This standard is important for the development and use of autonomous vehicles (AV).
It creates a standard for communication between intelligent transportation systems such as variable speed signs to inform AVs of changed traffic conditions.
Additionally it can be used to improve construction site safety where road works on partially closed freeways can beam messages directly to vehicles in the vicinity informing of changed road conditions and safety alerts.
As this spectrum is vehicle to everything, each worker could have ‘tags’ which communicate to any road vehicle to slow down if they get too close e.g. a low speed zone of 20km/h
Related:
The Office of Federal Contract Compliance Programs (OFCCP) announced it was reinstating the revised Monthly Employment Utilization Report (CC-257).
Employers with a federal construction contract or subcontract and/or federally assisted construction contract or subcontract in excess of $10,000 must complete and submit monthly Form CC-257 reports to OFCCP.
The first report will cover the calendar month of March 2025 and is due April 15, 2025.
SEC issues summons for Gautam Adani, nephew on bribery allegations
The SEC is suing the head of the Adani Group and his nephew Sagar Adani, alleging they engaged in hundreds of millions of dollars in bribes to help an Adani company.
The group CFO said the indictment is linked to one contract of Adani Green Energy that makes up some 10% of its business.
Federal prosecutors issued arrest warrants for Gautam and Sagar Adani, alleging they participated in a $265 million scheme to bribe Indian officials to secure power-supply deals.
Notes:
The Adani group has been a key builder in India’s infrastructure modernisation.
This summons has already had an impact with Kenya's president canceling a massive airport project with the group.
As the fallout of this continues, it will impact infrastructure construction as well as the renewable energy construction market as the Adani group may find it difficult to win bids.
It could also have an impact on the development of the world’s largest renewable energy plant in Gujarat.
At five times the size of Paris and planned by Adani Green Energy, it could fail due to the fallout from this case.
With India’s construction industry set to become the world’s third-largest construction market within the next 3 years, this provides an opportunity for competitors.
White House Seeks $8 Billion in Transportation Aid
Biden asked to approve emergency aid before the end of the year to rebuild transportation corridors and provide assistance to areas hard-hit by natural disasters.
Overall, the Biden White House is asking Congress to approve nearly $100 billion in emergency funds to boost operations at the Federal Emergency Management Agency and other departments.
NYC Gets Historic Push for 80,000 Homes With $5 Billion Pledge
The rezoning plan, known as City of Yes for Housing Opportunity, passed a key City Council subcommittee.
The plan to build 80,000 new homes came together thanks to a last-minute pledge by the city and state to spend $5 billion on affordable housing and infrastructure.
The money will be used for affordable housing, sewers, flood protection and other infrastructure improvements.
Sweden rejects Baltic Sea wind farms, citing defence concerns
Sweden has rejected applications to build 13 offshore wind farms in the Baltic Sea due to defence concern.
It would make it harder to detect and shoot down missiles using Sweden's Patriot batteries in case of a conflict.
The wind farms could halve the time Sweden had to react to a missile attack to just one minute.
Sweden's capital is just 500 kilometres (311 miles) from the Russian exclave of Kaliningrad.
The government has a plan to build out nuclear power. It aims to have an additional 2,500 megawatts of nuclear power by 2035 and 10 new reactors a decade later.
Trump's deportation vow alarms Texas construction industry
In 2022, more than a half million immigrants worked in the construction industry.
Nearly 60% of that workforce was undocumented.
The Texas workforce isn't large enough to keep pace with its growth relying on supplementation by immigrants.
Thailand eyes congestion fee to ease Bangkok jams
Thailand's government is considering introducing a congestion charge to reduce the chronic traffic jams in Bangkok.
The government is reviewing a plan to impose a daily congestion fee of about 1.4 US dollars per vehicle entering central Bangkok.
The idea is to encourage people to use the elevated railway, known as the BTS instead of driving.
California is ready to pick a fight with Trump if he kills the federal EV tax credit
During the campaign, Trump vowed to eliminate President Joe Biden’s “EV mandate” on “day one” of his presidency.
His advisors have discussed including a measure to kill the $7,500 tax credit for new EV purchases as part of a broader tax reform package.
If Trump succeeds, Newsom says he’ll restart the state’s recently phased out Clean Vehicle Program.
It offered rebates from $1,000 to $7,500 for the purchase or lease of new, eligible zero-emission vehicles, including electric, plug-in hybrid electric, and fuel cell vehicles.
Notes:
Changes to the EV tax credit can have an impact on EV charging infrastructure investment and rollout.
National Infrastructure Projects & Priorities
Global
Group of Nations Make COP29 Pledge on No New Unabated Coal Power
EU and 25 countries agree to add commitment in climate plans
Global coal power capacity has risen despite previous promises
Notes:
It’s another tailwind for renewable energy construction.
The COP29 deal is even smaller than it looks
Rich countries will take the lead on raising at least $300 billion per year by 2035 to support climate adaptation and emissions reductions projects in developing nations.
US
The Trump team’s plan to resuscitate a dead oil project
Donald Trump is looking to revive the Keystone XL oil pipeline, a 1,200-mile Canada-to-Nebraska crude project.
The pipeline’s permit to cross the U.S.-Canadian border was first rejected in 2015 by President Barack Obama.
Trump in 2017 reversed that decision and approved the border crossing.
This was revoked by Biden in January 2021.
India
Building India - 10 years of infrastructure development
Over the last 10 years:
National highways have expanded 60%.
Metro rail networks are four times bigger.
84 new airports have come into operation.
Power generation has seen a 70% increase in capacity.
Since 2014, there has been a 500% increase in the road transport and highway budget allocation.
One success has been the renewable energy sector led by solar power which has added close to 200 gigawatts since 2016 and now contributes to over 46% of power supply in India.
The aim is to reach 500 GW by 2030 to cut reliance on imported fossil fuels and meet India’s net-zero goals.
Related:
Adani Indictment Taints India’s Green Pitch to the World
Adani Group executives accused of bribery to win solar deals
India approves 426 MW hydroelectric projects worth $437.6 million in northeast
The Indian government has approved the construction of two hydroelectric projects.
Both the projects are expected to be completed in 50 months.
Australia
Chalmers pushes $13.7b critical minerals, hydro tax credit plan
The federal government said it will table a bill to legislate $13.7 billion in tax credits for critical minerals and hydrogen projects, requiring production by 2040.
It offers a 10% tax credit for critical minerals processing and a $2 per kilogram hydrogen production incentive.
Notes:
Green energy construction and critical mineral processing plants, a key part of the rare earth supply chain continue to be invested in as the West seeks to decouple from dependency on China.
Latin America
Megaport reshapes China-Latin America trade amid US tariff threats
The US$3.5 billion Chancay port in Peru was developed into the biggest deep water project of its kind on the long Pacific coast of South America.
The newly opened container port will shave 10 to 12 days off shipment times between Shanghai and Peru, reducing transit times to around 23 days.
It will also cut logistics costs for shipments between China and Peru by at least 20 per cent and foreshadows a boom in Chinese e-commerce in Latin America.
Turkey
World Bank discusses $28B energy infrastructure investment with Türkiye
The discussion is on a $28 billion financing plan aimed at transforming the country’s energy transmission infrastructure.
Indonesia
Indonesia’s Prabowo Vows to Retire All Coal Plants In 15 Years
Indonesia President Prabowo Subianto said the government plans to retire all the nation’s coal power plants within 15 years to help stem global warming.
The country will also retire all other fossil fuel plants and add more than 75 gigawatts of renewable energy capacity over the same time frame.
Achieving such targets will be difficult as coal and natural gas account for nearly 80% of electricity.
As of last year, Indonesia has installed less than 1 gigawatt of combined wind and solar capacity.
Big Tech
Meta plans to build a $10B subsea cable spanning the world, sources say
Meta plans to build a new, major, fibre-optic subsea cable extending around the world — a 40,000+ kilometer project.
Meta will be the sole owner and user of this subsea cable giving Meta a dedicated pipe for data traffic around the world.
The planned route of the cable, says sources, is to span from the east coast of the U.S. to India via South Africa, and then to the west coast of the U.S. from India via Australia.
The route as envisioned by Meta is intended to help the company avoid areas of geopolitical tension (this month Russia was suspected of cutting a submarine cable in the Baltic Sea).
Meta is part-owner of 16 existing networks, including most recently the 2Africa cable that encircles the continent.
Investment funds
Webcor Ventures, a corporate venture arm of Webcor, a San Francisco commercial builder launched (fund size unclear). They are investing in key industry challenges such as efficiency and productivity, affordability, speed to market and labor shortages as well as innovative and sustainable building methods. More here.
Virescent Ventures, an Australian firm, raised $125m. They will invest in climate tech startups across a range of verticals including the built environment and urban applications. More here.
Move Energy, a Dutch firm, announced a €35m commitment as they raise their first fund. They will invest in startups focusing on the energy transition to decarbonise power, transport and buildings. More here.
Acquisition
Procore, a construction management software provider, acquired Intelliwave Technologies, a Canadian provider of intelligent materials management software. More here.
Notes:
At Groundbreak, Procore’s conference, they unveiled resource management, a new product category which is a solution for labor, equipment, materials tracking and planning across the build lifecycle.
This acquisition helps Procore accelerate in this capability by integrating into their existing capabilities.
They also unveiled Procore AI Agents which assist with automated risk detection and actions (I haven’t yet heard any feedback on their AI agents - I’m curious to see how it works)
Forterro, a British software company for industrial businesses acquired Orgadata, a German company which provides software for designing, calculating and producing windows, doors and curtain walls. More here.
Apex Service Partners, a HVAC, plumbing and electrical services group, acquired HomeBreeze, a Y combinator backed startup which provides homeowners and tradespeople with fast, guaranteed and fixed price quotes as well as identifying relevant rebates. More here.
Intact Financial Corporation, a Canadian insurer, acquired Jiffy, a Toronto startup which connects homeowners with pre-vetted home service professionals in over 20 categories, such as plumbing, electrical work, and roofing as well as streamlining sourcing and scheduling. More here.
News
EllisDon and Impulse Partners Announce 2024 ConTech Accelerator Winners
The winners are:
Salus: A safety management software that integrates company safety programs into a comprehensive system to manage health and safety.
EHAB: Helping the construction industry better understand the impacts of climate change on projects and plan accordingly.
Specter Automation: The first and only 3D model look-ahead planning tool that helps teams build six-week lookahead plans by visualizing data to better communicate to the field.
India's blue-collar workers paradox pt. 3 - Rethinking manufacturing when humans aren't the answer (Fabio Bronzin)
Fueling the crisis: Climate consequences of the 2021 infrastructure law
Over 50% of the bipartisan Infrastructure Act (IIJA) dollars from Dept of Transport are being used for highway projects.
Rivian snags $6.6B conditional federal loan to build Georgia factory
The loan is conditional, meaning it hasn’t been finalized just yet.
If finalized, the loan will support construction of a 9 million square foot facility to manufacture up to 400,000 mass-market electric sport utility vehicles and crossover vehicles.
The Biden administration set a goal for zero-emission vehicles to make up half of new U.S. car sales by 2030.
NYC's Underground Steam System May Be Key to a Greener Future
A 106 mile network of underground pipes has pumped 370 degree steam into a number of Manhattan buildings to power heating and cooling systems.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.