Last Week in ConTech - 22 September 2025
Bridging the Financing Gap for First-of-a-Kind Projects
Deep Insight: Bridging the Financing Gap for First-of-a-Kind Projects
This week, Sightline Climate released a piece about the use of the D-SAFE, a Development-SAFE which is a new financial instrument helping to bridge the ‘scale gap.’
The scale gap is where early stage startups need capital to develop projects but can’t yet access infrastructure scale funding. Early on, grants and venture capital can support pilots and on the other side, project finance is available for proven, bankable facilities.
This creates a ‘gap’ for the first commercial-scale project. These are often first-of-a-kind plants like advanced geothermal or carbon capture, where capital needs are large and risks remain high.
Element, who has been iterating on development of the D-SAFE, describes the problem:
Investors have shied away from funding development because it is high risk: a lot can change between pre-project planning and when a carbon capture or sustainable aviation fuel facility is up and running. This can range from market fluctuations to new policies and regulations, each of which represents an all-or-nothing hurdle to realizing a project, with the potential for a total loss of investment capital
The D-SAFE helps overcome this by offering flexible, milestone-based capital. For one startup, a D-SAFE was tied to milestones like site acquisition, engineering design and permitting for their first commercial facility. The instrument also has a clause which allows it to work as a loan or a conversion clause where it can be converted into equity.
For climate tech startups, including those in green materials, this tool could help close one of the hardest financing gaps. When we did the research for our How to scale Green Materials article, one challenge founders mentioned was how difficult it can be to build the first commercial facility (e.g low carbon cement production) due to this.
As Element continues to iterate on this instrument and it gains more widespread acceptance, it provides the opportunity to support and fund newer and more innovative infrastructure.
In this issue there are:
11 Startup Fundings
1 Startup Emerged from Stealth
14 Policy and Regulatory Changes
11 New National Infrastructure Projects & Priorities
0 New investment funds
0 Acquisitions
10 News articles
58 new jobs posted - view here
Reading time: 15 min
Startup Funding
Regulatory
Ultimarii, a Canadian startup, raised CAD ~$2.6m in Seed funding. They have developed an AI platform to speed up the application and regulatory approval process for large energy and utility infrastructure projects by assessing their feasibility. More here.
Notes:
The solution uses publicly available information on what projects have been approved and why, including applications, public feedback, transcription and decision documents.
It uses AI to ingest this information and analyze it.
Permitting
GreenLite, a New York startup, raised $49.5m in Series B funding. They have developed a platform to streamline the construction permitting process by acting as a permit manager handling submissions and approvals, offering private plan reviews using qualified third parties and providing code compliance and pre-checks using AI to ensure the jurisdictions requirements are met. More here.
Reality Capture
DroneDeploy, a San Francisco startup, raised $15m in funding. They have developed a reality capture solution which can take visual inputs from drones, 360 or fixed camera or ground robots and is used for construction monitoring and process tracking allowing virtual walkthroughs. More here.
Notes:
Reality capture solutions is a more ‘mature’ sector of construction technology with a number of players (e.g. Track3D, Holobuilder, Evercam etc).
DroneDeploy is one of the most successful (and earliest) solutions which makes this raise interesting.
In their press release, the company announced they had reached breakeven and raised capital to invest in new AI products (Progress AI, Safety AI) and robotics to advance autonomous capture across quadruped, aerial, and eventually humanoid systems.
Shifting data capture to robotic systems enables more consistent site documentation and removing repetitive tasks like daily captures that people prefer not to do.
The more you handle the data from ‘cradle to grave’ (from capture to reporting insights), the more valuable and sticky your solution becomes.
This change also highlights how DroneDeploy sees the future of reality capture evolving.
Bidding
Temelion, a French startup, raised €3.2m in Seed funding. They have developed an AI powered platform which assists with tendering, streamlining Go/No Go process, autogenerating technical proposals and providing contractor evaluations. More here.
Prefabrication
Samara, a Californian startup, raised $34m in Series B funding. They make prefabricated tiny homes managing the entire process from design to manufacturing, permitting, delivery and installation. More here.
Preconstruction
Join, a Californian startup raised funding (undisclosed) from investors including WND Ventures (DPR Construction) and STO Building Group. They have developed a preconstruction and design phase management software which supports the early collaboration of all stakeholders such as design, contractors, owners and trades. More here.
Notes:
Join is optimized for collaborative delivery methods such as Design-Build (DB).
Design-Build is one of the fastest-growing and most widely used project delivery methods in the US, projected to account for more than 47% of construction spending by 2028.
In Design-Build, the owner signs a single contract that covers both design and construction services.
This contrasts with Design-Bid-Build (DBB), where the owner first contracts a designer to produce drawings, then puts the project out to tender, and finally signs a separate contract with a contractor to deliver the build.
Because the designer and contractor share one contract in DB, preconstruction becomes far more important.
If the design contains errors or gaps, contractors generally cannot submit variations, so tighter coordination on constructability and cost is required during the design phase.
For example, a contractor may flag long lead times for certain products and request substitutions during design, avoiding delays later.
Even internally for a designer solutions which highlight design changes to downstream design teams are incredibly valuable.
As a pavement engineer, I often experienced situations where a road engineer adjusted alignment, impacting my work and the water team’s drainage design.
This challenge arises because teams often work in silos, optimizing for their own discipline and unintentionally creating rework downstream.
Immediate notification of changes allows disciplines to collaborate on design choices that minimize downstream redesign.
In smaller companies this is facilitated by having the disciplines operate together, for instance the drainage engineer may be embedded with the road team, allowing immediate feedback loops.
Supply Chain
Infra.Market, an Indian startup, raised $83 million in Series G funding. They offer a one stop shop for construction materials and products marketplace combining an asset-light procurement and distribution network with a curated supply chain of manufacturers. More here.
Asset Management
Puralink, an Australian startup, raised $2.3m in Pre-Seed funding. They have developed robotic ‘ferrets’ that can travel through complex pipe systems navigating corners, intersections and vertical stacks for up to 1km in a single run collecting high definition CCTV, LiDAR and mapping data for condition records. More here.
Notes:
This solution is incredibly useful for asset management.
When we have pavement heaving (upward displacement) we usually check the underground water pipes for cracks as it may be leaking into reactive soil.
This involves a crawler being dropped from a manhole that captures CCTV and the ones I have seen look like tiny RV cars. We have to be careful they don’t get stuck.
This solution appears to have much greater flexibility and distance.
Field Management
Raken, a Californian startup, received investment (private equity, undisclosed). They have developed field management software which streamlines critical field workflows such as daily reports, time and production tracking, resource scheduling, safety management and RFIs sharing real time information for decision making. More here.
Green Materials
CarbonBuilt, a Californian startup, raised funding (undisclosed). They have developed a novel binder technology which enables the production of low carbon technology and utilizes an owner/operator model to retrofit and leverage existing infrastructure. More here.
Notes:
CarbonBuilt acquired the supplier Jolley Concrete in Northeast Connecticut to prove the feasibility of their technology.
Other - Building Management Systems
PassiveLogic, a Utah startup, raised $74m in Series C funding. They make hardware and software solutions for buildings to improve how they are designed, built, operated and maintained offering services such as digital twins, site analysis and ESG monitoring as well as sensors to capture occupancy in real time and for autonomous building control. More here.
Out of Stealth
Nyro, a US startup, emerged out of stealth. They develop teleoperated humanoid robots for use in construction, disaster response, and hazardous material handling. View their website here.
Policy and Regulatory Changes
US
Audit found weaknesses in review of wind, solar projects on US public lands
According to a report by an independent government watchdog, U.S. officials consistently failed to comply with federal regulations when reviewing applications for wind and solar projects on public lands.
The auditor found that the Bureau of Land Management did not assess most applicants' technical and financial ability to develop renewable energy projects.
It also maintained incomplete files and failed to screen applications in a timely manner.
California lawmakers pass SB 79, housing bill that brings dense housing to transit hubs
California lawmakers passed SB 79, a bill that would override local zoning laws and support higher-density housing near transit corridors such as bus stops and train stations including:
Up to nine stories for buildings adjacent to certain transit stops.
Seven stories for buildings within a quarter-mile.
Six stories for buildings within a half-mile.
California pledges $1 billion annually to high-speed rail project through 2045
In June, the U.S. Department of Transportation (DOT) secretary shared plans to rescind $4 billion in federal funding from California’s high-speed rail system.
To help make up for that shortfall, the state of California has pledged $1 billion annually on the high-speed rail program.
San Francisco’s permitting reform seeks an end to building project ‘death by a thousand cuts’
San Francisco Mayor unveiled a legislative package containing permitting changes.
The changes would reduce permitting fees for development projects of $100 million or more.
It would eliminate a requirement to meet with city staff ahead of submitting a permit application for larger developments.
The changes also add flexibility for how the city’s historic buildings can be used and make it easier to add accessory dwelling units.
Scott Signs Executive Order to Increase Home Construction
The Governor of Vermont signed an executive order that is meant to speed the construction of new housing.
It is to streamline permitting and rollI back climate regulations.
It’s meant to help developers build the 40,000 new homes the state is forecast to need by 2030.
One major change involves rolling back the energy efficiency standards in the 2024 building code.
Those requirements will now become voluntary, and builders now will only be required to meet the 2020 efficiency code.
NYC kicks off second startup competition to modernize building regulations
New York City’s Buildings Tech Lab this week opened applications for its second annual technology competition.
This allows startups to present innovative solutions and tools for a chance to help modernize the regulation process for the city’s buildings.
They are seeking solutions which modernize internal department workflows such as case-tracking and code updates.
Notes:
Companies chosen for the program will participate in a six-month pilot broken into two phases.
Phase 1 will focus on validating the technology in the department’s operational environment.
Phase 2 will evaluate cost and scalability for broader deployment.
EU
Nuclear, Gas Win EU Court Boost in Blow to Green Groups
Austria lost a bid to overturn the European Union's decision to include gas and nuclear power in the bloc's green rulebook.
The court ruled that they could “contribute substantially” to climate change mitigation and adaptation.
Notes:
Being designated as green makes it easier to qualify for subsidies and often paves the way for access to cheaper finance.
Canada
Carney Unveils $9.4 Billion Plan to Build Affordable Homes
Canadian Prime Minister Mark Carney launched a new government agency responsible for building affordable homes.
The agency will have C$13 billion in capitalization to support builders of affordable housing and plans to construct 4,000 factory-built homes on federal lands.
UK
Two sites in North East become 'AI growth zone'
Plans have been made to make it easier to develop AI projects at two sites in north-east England.
AI growth zones will be “dedicated hotbeds for AI infrastructure development.”
Blackstone has already committed £10 billion into the Blyth site.
The new designation of an AI Growth Zone provides the potential for an additional £20 billion in investment from future partners.
US and UK sign major nuclear power deal: What does it include?
The Atlantic Partnership for Advanced Nuclear Energy aims to speed up the construction of new reactors.
It’s designed to cut red tape, align safety standards and slash the time it takes to license nuclear reactors from up to four years to just two.
They announced that Britain’s largest energy supplier, Centrica, will pair up with the US firm X-energy to develop up to 12 advanced modular reactors.
Other deals include a £11bn ($15 billion) plan for SMR powered data centres.
India
MP Aims to Achieve 50% of Power Generation from Renewable Energy Sources
Madhya Pradesh, a state in India’s Additional Chief Secretary stated they are aiming to increase the generation of green energy.
This includes aiming for 50 per cent of their total power consumption to come from renewable sources.
Vietnam
Vietnam Proposes Overhaul Of Construction Law Procedures
The Deputy Prime Minister chaired a meeting in Hanoi to discuss amendments to the nation’s Construction Law.
The draft law under discussion proposes a new ‘one-door, one-lock’ mechanism for both the appraisal and issuance of construction permits.
This approach is designed to allow simultaneous evaluation of project dossiers.
It also seeks to update rules on construction contracts and technical standards to ensure they remain practical and enforceable.
Additionally it opens the door to referencing international standards and prices and the use of foreign consultants when local expertise is lacking.
Hong Kong
Hong Kong to update railway standards with national measures to help cut costs
The Highways Department announced the move to update the Hong Kong Railway Standards with those of the mainland.
The standards are a set of regulations and technical requirements for railway safety, design, construction, operation and maintenance in Hong Kong.
They incorporate national design standards, building materials, equipment and specifications for utilising the mainland’s construction methods, technologies and resources in railway construction.
Malta
New Construction Site Regulations Now in Force in Malta
The Health and Safety at Work (Minimum Health and Safety Requirements for Work at Constructions Sites) Regulations have come into force.
These Regulations include measures which aim to strengthen the health and safety to prevent accidents on construction sites and ensure the facilities on such sites are maintained to a high level.
A new duty holder called the ‘Client Representative’ has been introduced.
This allows a project owner to nominate third parties not just to manage their project, but to also assume all responsibility and oversight in terms of the Regulations.
The Regulations also mandate that a competent Project Supervisor for Health and Safety matters is required to be nominated at all times in relation to qualifying projects.
National Infrastructure Projects & Priorities
US
Data center growth slows as U.S. power grid lags
Data center construction is slowing nationwide as U.S. electrical infrastructure struggles to keep up with demand.
Data centres under construction in the first half of the year fell 17.4%.
Notes:
Oregon is a popular area for data centre operators and has developed a skilled high-tech construction workforce.
Increasingly, Oregon subcontractors are being sought for data center projects in other states.
Oracle, OpenAI Sign $300 Billion Cloud Deal
OpenAI signed a contract with Oracle to purchase $300 billion in computing power over ~five years.
The Oracle contract will require 4.5 gigawatts of power capacity which is roughly the amount consumed by about four million homes.
Microsoft boosts Wisconsin data center spending to $7 billion
Microsoft said it plans to build a second artificial intelligence data center in Wisconsin.
This will bring its spending in the state to more than $7 billion.
India
India Is Said to Plan $3.4 Billion Rail Lines Near China Border
India is set to reinforce its northeastern frontier by adding railway infrastructure to deepen access, accelerate logistics and ensure military readiness.
The plan involves laying 500 kilometers (about 310 miles) of rail lines, including bridges and tunnels, to connect remote regions bordering China, Bangladesh, Myanmar and Bhutan.
The project will likely cost the government 300 billion rupees ($3.4 billion) and is expected to be completed within four years.
Europe
EU's top court rules against Hungary's nuclear state aid
The EU's top court, the European Commission, should not have approved Hungarian state aid for the expansion of its Paks atomic plant by a Russian company.
The Commission had not checked whether the contract met EU rules.
UK
Microsoft invests $30bn in UK
This is Microsoft’s UK budget for the next four years and refers not just to artificial intelligence infrastructure but also “ongoing operations” across the UK.
It includes $15bn in capital expenditure such as on equipment, land and buildings for AI and cloud services.
Google sets out $6.8 bln UK investment ahead of Trump's state visit
Google said it would make 5 billion pounds ($6.80 billion) in new investments into Britain.
The U.S. tech company also announced the opening of a new data centre close to London.
UK’s £240 Billion Green Power Plan Runs Into a Political Storm
The British Prime Minister’s plan to deliver a carbon-free power grid by the end of this decade will require about £240 billion ($325 billion) of investment.
It involves 70 million solar panels, 6,000 wind turbines, and 4,500 kilometers of underwater electricity cables.
The 2030 clean power goal faces political backlash, as opponents insist the policy will cripple businesses and households through sky-high bills.
To meet the target, offshore wind generation capacity will need to more than double, to at least 43 gigawatts.
This implies a pace of ~5 gigawatts of capacity every year through the deadline.
Russia
Russia plans 38 new nuclear reactors, meanwhile Germany goes ‘green’
The director general of the country’s state atomic energy corporation Rosatom said Russia aimed to add 38 new nuclear reactors to its existing fleet in the coming years.
The country currently operates 36 reactors.
Mexico
Authorities launch $22B port overhaul to boost nearshoring
The Mexican President announced nearly $22 billion in public and private investment to expand and modernize Mexico’s ports over the next six years.
One of the biggest initiatives is the $7.5 billion Interoceanic Corridor of the Isthmus of Tehuantepec. a rail-and-port network linking the Pacific and Atlantic.
The corridor will include modernized ports, double-stack rail lines, and new industrial complexes along the route.
Australia
Australia’s Rooftop Solar and Battery Installations Are Surging Despite Broader Lag in Renewables
Australia is on track to overshoot its 2030 rooftop solar targets.
About 27 gigawatts of rooftop solar had been installed by homes and small businesses by end-June.
This is set to rise to 37.2 gigawatts by the middle of 2030.
Australia has the world’s highest level of solar installations.
News
Germany’s Autobahn Bridges Are Going to Pieces (Bloomberg, Opinion)
More Than Half of the Autobahn's Bridges Were Built Before 1985.
More than 8,000 of the Autobahn’s bridges need upgrading and 4,000 of these have been fast-tracked for refurbishment by 2032.
Autodesk has introduced neural CAD, a new category of 3D generative AI foundation models coming to Fusion and Forma.
They say it will “completely reimagine the traditional software engines that create CAD geometry” and “automate 80 to 90% of what you [designers] typically do.”
Neural CAD models are trained on professional design data, enabling them to reason at both a detailed geometry level and at a systems and industrial process level.
Autodesk says that in the future, customers will be able to customize the neural CAD foundation models, by tuning them to their organisation’s proprietary data and processes.
Autodesk has so far presented two types of neural CAD models: ‘neural CAD for geometry’ and ‘neural CAD for buildings’.
RICS artificial intelligence in construction report 2025 (Royal Institution of Chartered Surveyors)
Upcoming 3D generative AI foundation models for Autodesk Fusion and Forma
Autodesk is developing a range of neural AI foundation models focused on design to solve problems.
The first of these is neural CAD, a category of generative AI models trained to directly reason both about CAD objects and industrial and architectural systems.
This week, at AU 2025, Autodesk announced the upcoming commercial availability of this new category of generative AI foundation model technology.
Backlog slips as small construction firms lose ground
Construction backlog fell to 8.5 months in August, down from 8.8 months in July.
Contractors with under $30 million in annual revenue accounted entirely for the monthly decline.
Larger firms, on the other hand, posted the longest backlog in over two years.
Caterpillar Says Higher Tariff Costs May Reach $1.8 Billion
The construction and mining manufacturer said it expects the net impact from tariffs to be $1.5 billion to $1.8 billion this year, up from a previous range of $1.3 billion to $1.5 billion.
The infrastructure moment (McKinsey)
McKinsey estimates that a cumulative $106 trillion in investment will be necessary through 2040 to meet the need for new and updated infrastructure.
The required investment spans seven critical infrastructure verticals.
Transport and logistics requires the largest share ($36 trillion), followed by energy and power ($23 trillion).
US manufacturing investment stumbles as clean tech cancellations pile up
More clean tech manufacturing investments were canceled in the U.S. in the second quarter than were announced.
Countries are struggling to meet the rising energy demands of data centers
Mexico’s lagging energy grid is forcing companies, including Microsoft, to use generators.
Malaysia’s new data centers create thousands of jobs — and worries about power and water shortages
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.