Last Week in ConTech - 23 September 2024
Rising global nuclear plant construction + is Turner construction investing in startups?
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:
14 Startup Fundings
11 Policy and Regulatory Changes
0 US election policy updates
8 New National Infrastructure Projects & Priorities
3 New investment funds
2 Acquisition
6 News articles
41 open jobs - view here
Reading time: 13 mins
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Startup Funding
Workforce Development
Smalt, a Berlin startup, raised €8m in Seed funding. They provide a development and technology services platform for the green trades sector providing on demand installation services for the residential and commercial solar market. They do so by operating an academy to train and upskill workers. More here.
[View open jobs - 1 role in Operations, 6 roles in Other]
Notes:
One of the biggest challenges with the clean energy transition is the availability of skilled workers.
Germany faces a shortage of 300,000 workers by 2030 affecting their ability to meet climate targets.
Smalt addresses this by launching their own accredited academy (they have 5 hubs) and training material focusing on migrant workers.
This workforce is then able to complete jobs which energy companies place on Smalt’s platform.
In the future they wish to scale via a franchise network and are planning on addressing other verticals such as heat pump installation.
Interplay Learning, a Texas startup, raised funding (undisclosed). They provide immersive training for the trades allowing rapid upskilling and empowering technicians to be job ready within weeks via 3D simulations (VR), personalized learning, videos and knowledge checks. They specialize in the design and delivery of learning solutions for organizations conducting crane, rigging, and load handling activities. More here.
[View open jobs - 1 role in Marketing, 1 role in Software, 1 role in Sales]
Permitting
GreenLite, a New York startup, raised $28.5m in Series A funding. They provide a platform which standardizes and automates the construction permitting process (not just the application) allowing users to check project status and updates on each project in their portfolio. More here.
[View open jobs - 1 role in Civil Engineering, 2 roles in Software, 1 role in Product]
Notes:
Average permitting turnaround time is 90+ days.
Bidding
PinPoint Analytics, a New Jersey startup, raised $3.2m in funding. They have developed an AI enabled platform which streamlines road construction bidding and cost estimates analyzing historical data and adjusting for variables such as materials, labor, equipment, seasonality, geography and market conditions. More here.
Payments
Sitewire, a San Francisco startup, raised $3.17m in Seed funding with Zacua Ventures leading. They have developed a construction finance platform which helps to track project progress, automate work verification and speed up payments. More here.
Notes:
The payment process for subcontractors can be quite complex and lengthy.
A reason why is that before getting paid they need to prove what has been completed and delivered with a payment application.
These can involve a lot of detail, forms and attachments to prove completed work.
It makes automating financial workflows difficult given the time it takes to develop a payment application and then the approval process on the payee’s side.
This complexity has been a reason why there is so much interest in the integration of progress monitoring / reality capture software (as built models) with payment workflows as the data could act as a proof of completed work.
Sitewire appears to have developed a visual progress technology which converts smartphone videos and photos into 3D imagery to allow virtual inspections.
This would allow them to streamline the payment application process and support remote monitoring of the job site.
Procurement
Venttup, an Indian startup, raised Seed funding (undisclosed). They are building a network of scalable manufacturing capacities helping enterprises with outsourcing engineering needs through cloud manufacturing and sustainable practices. More here.
Notes:
Venttup appears to be capitalizing on the China plus one trend seeking to help local Indian manufacturers compete on the global scale.
Their mission is to strengthen manufacturing enterprises by fostering a sustainable supply chain ecosystem.
This involves working Micro, Small, and Medium Enterprises (MSMEs) in adopting sustainable manufacturing practices helping them to align with global sustainability trends and increase competitiveness.
They allow access to manufacturers by operating a B2B marketplace promising transparency in product, service, supply availability and flexible pricing and purchasing terms.
One vertical they focus on in construction materials such as cement, TMT Bars, aggregates etc.
Essentially, it appears that they operate an intelligence procurement network helping customers access MSME in India and helping these MSME meet global sustainability requirements and customers
Renewable Site Energy Systems
Nomad Solar Energy, a Spanish startup, raised €15m in funding. They develop mobile and off-grid solar generators with their reference product, the Nomad Energy Box, being adaptable to any environment and able to be deployed on site in less than 3 hours without a need for site preparation, permits or skilled labor. They are finding traction in isolated or remote locations such as construction sites. More here.
[View open jobs - 1 role in Sales, 1 role in Project Management]
Digital Twin
Samp, a French startup, raised €6m in funding. They have developed a digital twin solution which enables constant asset monitoring for industrial sites (such as power or water) to reduce risks, improve inspection, maintenance, construction site safety and operational efficiency. More here.
[View open jobs - 1 role in Support, 1 role in Software]
My Digital Buildings, a Parisian startup, raised €2m in funding. They create and utilize spatial building data offering surveying services as well as delivering in a variety of formats such as 3D point clouds, 2D plans, BIM models, and virtual tours. More here.
[View open jobs - 2 roles in Marketing, 2 roles in Sales, 1 role in Software]
Monitoring
Sceye, a New Mexico startup, raised Series C funding (undisclosed). They develop high altitude platform systems which stay airborne in the stratosphere for months to a year at a time providing telecommunications and earth observation services. More here.
[View open jobs - 2 roles in Other]
Notes:
This can be used for connectivity and progress monitoring on remote sites.
Asset Management
Kahi, a Canadian startup, raised CAD$2.3m in Seed funding. They provide IoT based asset tracking sensors for restoration subcontractors to track and manage climate control equipment such as dehumidifiers from warehouse to job site helping understand equipment availability and allowing automation of invoicing. More here.
Fixform, a Belgium startup, raised €1.5m in funding. They have developed a building management and maintenance solution where occupants act as sensors reporting issues via a location based QR code and the system uses AI to notify the appropriate employee for resolution. More here.
[View open jobs - 1 role in Sales, 1 role in Software]
HR
TeamBridge, a San Francisco startup, raised $28m in Series B funding. They have built a workforce operating system for hourly workers allowing HR tasks such as onboarding, scheduling, communication, time and attendance, reporting, and pay to be automated. They have found traction in the Medical Staffing and Warehousing sectors and offer solutions to construction. More here.
[View open jobs - 3 roles in Software, 1 role in Support, 1 role in Product, 2 roles in Sales, 1 role in Marketing]
Other
Statt, a Maryland startup, raised $2.8m in Seed funding. They provide an AI powered intelligence platform to surface public policy, regulatory and geopolitical insights providing real time data driven solutions to empower professional services firms and government agencies to navigate the regulatory landscape. More here.
[View open jobs - 1 role in Sales, 1 role in Marketing, 1 role in Support, 3 roles in Software]
Notes:
These tools can be valuable for contractors or sustainable material producers to understand the shifting regulatory requirements.
Policy and Regulatory Changes
US nuclear, coal power sites could host up to 269 GWe of new nuclear capacity: DOE
The sites of operating or recently retired U.S. nuclear power plants could support up to 95 GW of additional electric power production capacity from newly-built nuclear reactors.
Up to 145 coal sites in 36 states and 41 nuclear sites in 31 states, including some recently retired plants, are potentially suitable for nuclear repowering.
Notes:
Nuclear energy is of increasing focus in the US to power growing energy demand from AI workflows and electrification as it is reliable and does not require a significant reconstruction of transmission infrastructure.
A bottleneck has been the permitting of local sites and this report highlights there are existing sites which can be repurposed / reopened alleviating this bottleneck.
2025 California energy code updates aim to drive heat pump adoption, save nearly $5B in energy costs
The California Energy Commission announced it has adopted updates to the state’s Building Energy Efficiency Standards.
This is to support the state’s clean energy, public health and climate goals.
The code updates encourage installing heat pumps and replacing old HVAC units with high-efficiency systems.
The updates are expected to save $4.8 billion in energy costs and drive 500,000 heat pump installations in the first three years.
DOE spurs new building energy codes with another $90M
The awards will fund 25 projects to ensure buildings meet the latest energy efficiency standards.
The funding aims to help communities address traditional energy code barriers, including workforce training and the need to adapt model codes to specific regions.
The WIFIA program offers long-term loans to help communities implement critical water infrastructure projects.
White House creates AI infrastructure task force
The Biden administration convened leaders from artificial intelligence companies, hyperscalers, data center operators and utilities to strategize how to meet the country’s infrastructure needs for AI projects.
AI requires electricity, water and land for data centers as well as factories to make semiconductors as well as workers to build and staff.
They discussed strategies to meet clean energy, permitting and labor requirements for developing large-scale data centers and power infrastructure.
$720B in IIJA funds yet to be allocated
Nearly three years into the five-year law, 40% of Infrastructure Investment and Jobs Act funds have been announced.
More than 60,000 construction projects are advancing with IIJA money.
Much of the law’s funding is available until expended so it can be expected to fuel construction projects past the five-year period.
This order aims to provide incentives for federally assisted projects with high labor standards including collective bargaining agreements, project labor agreements, and certain community benefits agreements for federal financial assistance.
Agencies are to prioritize projects which provide a clear plan for efficient project delivery by promoting positive labor-management relations such as project labor agreements, collective bargaining agreements, community benefits agreements.
$38.8M earmarked for building decarbonization, energy efficiency, resilience research: DOE
Twenty-five projects across 17 states have received funding.
The technologies funded could be used for “next-generation” retrofits of building envelope, lighting and HVAC systems; enhancing building resilience during extreme-weather events; or to allow buildings to provide electricity back to the grid.
Major Ohio cities aim to cut building emissions with voluntary program
A federal grant will help four of Ohio’s largest cities collaborate on new voluntary building performance standards and a resource hub to help commercial building owners save energy and cut emissions.
$10 million in Inflation Reduction Act funding will be used to establish the Ohio High Performance Building Hub.
This will connect building owners with technical guidance, financing solutions, incentives, training, and other support.
U.K. to Fund ‘Small-Scale’ Outdoor Geoengineering Tests
The goal is to examine technologies that could artificially cool the Earth responsibly and ethically.
A British science agency will provide 57 million pounds for researchers to examine ideas for artificially cooling the planet.
This includes outdoor experiments to determine whether any of those ideas could actually work.
The MTA released details of a $68.4 billion capital plan for 2025-2029.
It proposes introducing a huge number of new rail cars across the subway and commuter rail systems.
It also aims to build at least 60 subway stations and six commuter rail stations, propose significant investment in signal modernization and fare gates, offer $9 billion in critical structure repairs, and offer another nearly $8 billion in station environment improvements.
Funding remains uncertain due to the pause of congestion pricing.
National Infrastructure Projects & Priorities
US
US solar panel manufacturing jumps 4-fold after Inflation Reduction Act
The IRA has boosted the clean energy sector by incentivizing companies with tax breaks for financing projects.
Notes:
The IRA has resulted in a surge of manufacturing investment and the outcome of the upcoming election could impact the availability of funding.
One in Four Recipients of a U.S. Battery Grant Has Given Them Up (notes from CTVC)
The government aid is intended at spurring a domestic battery supply chain.
Manufacturers are walking away citing challenges in meeting project timelines and cost requirements.
It highlights the difficulties in scaling domestic manufacturing.
China
China plans to build moon base at the lunar south pole by 2035
The first phase of China's moon base is to be completed around 2035 near the lunar south pole, and an extended model to be built by about 2050.
The International Lunar Research Station (ILRS) is jointly led by China and Russia with 13 countries signed up to the project.
The ILRS will be powered by solar, radioisotope and nuclear generators.
It will require further infrastructure such as moon-Earth and high-speed lunar surface communication networks, lunar vehicles like a hopper, an unmanned long-range vehicle and pressurized and unpressurized crewed rovers.
Both China and NASA aim to put astronauts on the moon before the end of the decade.
India
US$12.2 billion for new Indian tunnels
The plans from the Ministry of Road Transport & Highways calls for 74 new tunnels to be built.
These will measure 273 km in total, boosting India’s network of National Highways.
So far 35 new tunnels have been built in India, totalling 49 km in length at a cost of $1.83 billion.
South Korea
South Korea Approves Two New Reactors in Nuclear Power Push
South Korea approved the construction of two nuclear reactors.
This project was scrapped by the former administration which had pursued an anti-nuclear policy.
Seoul is aiming for nuclear to account for 36% of power generation by 2038, up from 30% now.
The country aims to satisfy soaring power demand from artificial intelligence with carbon-free sources such as nuclear and hydrogen.
Poland
Poland outlines financing plans for construction of first nuclear power plant
Poland’s government intends to spend over 60 billion zloty (€14 billion) between 2025 and 2030 on developing the country’s first nuclear power plant.
BlackRock and Microsoft announced they are part of a group seeking to raise $30 billion of private equity capital to invest in data centers and related energy infrastructure.
It is a recognition that the AI revolution requires massive compute power, which is rooted in the physical world.
Microsoft AI Needs So Much Power It's Tapping Site of US Nuclear Meltdown
The owner of the Three Mile Island nuclear plant in Pennsylvania will invest $1.6 billion to reopen it.
They have agreed to sell all the output to Microsoft as they seek carbon-free electricity for data centers to power the artificial intelligence boom.
One of the site’s two units was permanently closed almost 50 years ago after the worst US nuclear accident (partial meltdown).
The other reactor was shut in 2019 because it couldn’t compete economically.
Investment funds
Moderne Ventures, a Chicago venture capital firm, raised a $230m fund. They invest in real estate (and construction), finance, insurance and sustainability startups. More here.
Era Ventures, a New York venture capital firm, raised $88m in funds. They invest in built world startups. More here.
Turner Construction to invest in climate tech startups
Turner is one of the largest commercial contractors in the US.
During a climate summit held by venture firm Fifth Wall during the Blueprint conference, an executive mentioned Turner plans to invest in early stage startups from pre-seed to Series A.
Notes:
I could not find any press release or other information regarding the above.
It appears that this was mentioned by an innovation executive during the summit itself and picked up by Axios.
Acquisitions
Schneider Electric, a French company specializing in digital automation and energy management, acquired Planon, a Dutch sustainable building management platform. More here.
One Click LCA, a Finnish startup providing life cycle assessment of materials used in construction, acquired ENVI-met, a provider of software for the simulation of urban microclimates. More here.
Notes:
This acquisition allows One Click LCA to combine their environmental impact assessments with urban climate modeling supporting climate adaptive urban design.
News
Ensuring Our Built World Helps Us Thrive (Building Ventures)
Construction giant collapse sees 2,200 jobs cut
The UK operations of the international construction giant ISG collapsed into administration.
The Chief Executive stated that the current situation had arisen due to legacy issues relating to large loss-making contracts secured between 2018 and 2020.
They have been unsuccessful in finding a buyer.
Foundamental's AEC Robotics Cheat Sheet (2024 version)
How data centers and the energy sector can sate AI’s hunger for power (McKinsey)
KKR’s Agrawal Calls Industrial Infrastructure ‘Next Big Thing’
KKR & Co.’s global infrastructure head said the “next big thing” in the asset class is industrial assets such as storage facilities and logistics.
Fortune 500 companies have a large amount of industrial assets they need for production but don’t have to own.
They could sell these assets to shore up their balance sheets.
How Ventas used machine learning and AI to create a net-zero plan (McKinsey)
Ventas is a real estate investment trust (REIT) and S&P 500 company with roughly 1,400 properties in the United States, Canada, and the United Kingdom.
They leveraged AI (specifically, a form of advanced machine learning) and physics-based modeling to derive nearly 800 building-level plans for net zero roadmaps.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.