Last Week in ConTech - 23 October 2023
Mapping the 5 successful ConTech business models since 2000
ConTech Roundup - Startup funding & news and acquisitions that was important this week in Construction Technology. No fluff. No hype.
Last Week in ConTech - 23 October 2023
Startup Funding
Buildings
Elyos Energy, a London startup, raised $3m in seed funding. They help commercial buildings save costs by shifting electricity consumption outside of peak demand times by connecting to internal energy systems (thermostats, batteries, HVAC systems etc) to lower their consumption during these periods. More here.
View, a California startup, raised a $50m credit facility. They produce smart windows which automatically adjust in response to sunlight eliminating the need for blinds and reducing heat and glare. More here.
Harvest Thermal, a Californian startup, raised $2.5m in seed extension funding. They are building a smart panel for heat pumps to operate more effectively. More here.
Aira, a Swedish startup, raised €86m. They sell heat pumps and home energy technology to consumers. More here.
Bisly, an Estonian startup, raised €3.6M in funding. They provide a smart building platform covering all aspects including manufacturing, installation, management and digital twins. More here.
Construction
Skoon Energy, a Dutch startup, raised $5.6m in Series A funding. They run a clean energy rental equipment platform for projects which enables customers to select the best energy system for their specific needs, actively monitor their energy usage, and report on carbon savings. More here.
Decarbonization/Energy
Bia, a Columbian startup, raised $16.5m in Series A funding. They provide smart meter and energy consumption analysis software. More here.
Ampacimon, a Belgian startup, raised $10.6m in Series C funding. They provide grid monitoring and analytics solutions to optimize the use of energy infrastructure, maintenance and prioritize investments. More here.
3D Printing
Azul 3D, an Illinois startup, raised $15m in funding. They offer a method of 3D printing which allows users to print structures from a wide range of materials. More here.
Transport
Hayden AI, a Californian startup, raised $53m in Series B funding. They are building an autonomous traffic management system. More here.
Modular construction
Stilt Studios, an Indonesian startup, raised $10m in Series A funding and debt. They build prefabricated homes. More here.
CRMs
ProjectMark, a San Francisco startup, raised $3m in seed funding. They are building a Customer Relationship Management (CRM) system including bid pipeline management, RFP response management and client relationship development for the construction industry. More here.
Roofr, a San Francisco startup, raised $23.5m in funding. They provide roofing sales technology including roof measurements, instant estimates and CRM to help roofers streamline their businesses. More here.
Other
EarthGrid PBC, a Californian startup, raised $30m in seed funding. They produce Tunnel Boring Robots using plasma-powered torches for tunneling, trenching and excavation and using these to create a network of new underground transmission lines in the US. More here.
Amoda, an Indonesian startup, raised seed funding. They are a software tool that provides thorough and transparent information about the pricing, construction, and leasing process ensuring inspection of items and on time delivery. More here.
Natrx, a North Carolina startup, raised $3.5m in seed funding. They develop coastal resilience infrastructure. More here.
Acquisitions
Puls, a Munich wireless charging company acquired Wiferion, a wireless charging firm from Tesla. More here.
News
Construction’s manufacturing boom: Mapping the biggest facilities underway in the US
Things Are Looking Up for Asteroid Mining (WIRED)
The Long, Sad History of American Attempts to Build High-Speed Rail, Part II (Construction Physics)
5 models of the 17 Constru-Tech Unicorns per October 2023 (Foundamental)
Video summary here (highly recommend watching this)
Summary:
A unicorn is a startup with a >$1b valuation.
Construction has had 17 unicorns worldwide.
There are 5 types of models which have worked:
Workflow Software
SaaS solutions used to manage construction. These were first generation ConTech startups which were built cloud first at a time when legacy software was not.
Example: Aconex, ProcoreProcurement and supply chain management solutions
These solutions make it easier to discover and access cheaper materials across markets. They act as a one stop shop for contractors solving the discovery, delivery, quality and working capital issues that occur when contractors purchase in a more fragmented fashion.
Example: EquipmentShare, Infra.marketRenovation Design / One Stop Shops
These connect professional designers and contractors with owners for fit outs and renovations additionally providing management software to create efficient standardized processes during delivery.
Examples: Livspace, HouzzFinancial Services
These are software led solutions to handle financial processes around the construction and procurement process and increase access to working capital.
Examples: OfBusiness, Built TechnologiesStandardized / Verticalized construction platforms (tech-enabled general contractors)
These are contractors/platforms dedicated to the delivery of one asset class such as housing, warehouses, data centers etc. They verticalize and standardize the process using automation to offer lower cost delivery.
Examples: Icon, Nexi
Current fundamental shifts affecting AEC (opportunities for new startups)
AEC firms are very protective of their data and hide it behind company firewalls ie. AI solutions cannot effectively disrupt the industry due to a lack of quality training data.
There is an opportunity for startups to provide Vertical AI solutions as infrastructure. This means the AI is not embedded in software, the AEC firms take the infrastructure and plug it into their own data on their own company servers to generate outputs.Workforce shrinkage in the West and underskilling of blue collar workforce in emerging markets
Adjacent to this there is an opportunity for robotic contractors. Robot solutions provide leverage to construction labor (examples are Dusty Robotics or Rugged Robotics) however it can be hard to sell construction robots and is easier to deliver outcomes as a contractor.Reorganization and resilience of supply chains for materials and components
The EU and US are decarbonizing their existing building stock (>100m buildings).
When combined with energy demand and workforce shortage, this will be expensive and cheaper methods for retrofitting are required.Rising of electric mobility, electrification of homes and decentralized energy generation
Our energy systems cannot cope with the expected energy demand and require upgrades. The Western markets cannot service this demand and an efficient method for cross border sourcing/procurement is required.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week