Last Week in ConTech - 26 May 2025
Will Construction Firms Stop Buying Software?
Deep Insight: Will Construction Firms Stop Buying Software?
This week, Alice Leung (a previous guest contributor here) wrote a piece on how AI could enable the end of B2B software solutions in construction.
Her premise is that AI is driving down software development costs to the point where construction firms might build, rather than buy, their tools.
This idea draws on a trend in India, where access to affordable software talent has enabled many construction firms to create custom tools tailored to their unique workflows and project needs.
This hypothesis is actually reflective of a broader trend in software development. The attempt to empower ‘citizen development’ via low code development platforms.
These are platforms which, instead of coding via a text based editor, allow for complex web apps to be built using visual frameworks. They are easier to learn, with many programs producing ‘full stack’ developers in about six weeks. (I used to teach a low-code bootcamp).
This vision was to enable business users with little or no coding experience to create tailored software solutions for their teams (citizen development).
From the mid-2010s to early 2020s, low-code platforms attracted hundreds of millions in venture funding. But the promise was never quite fully realized.
A reason why is that if you are building software, even at a company specific tools, it still requires dedicated IT support for bug fixes, feature updates, and customer success teams for ongoing adoption. These functions are typically bundled with off-the-shelf software.
AI faces a similar challenge.
While it’s supercharging software teams and reducing development costs, it hasn’t yet empowered true ‘citizen developers.’ Users still need technical expertise to build and maintain applications.
But AI is improving quickly. It’s reasonable to believe we’ll soon reach a point where nearly anyone can prompt AI to build custom tools.
Returning to Alice’s premise, I believe this shift is not a matter of if, but when.
I don’t believe software development will remain only the domain of centralized teams. Just as citizen developers build custom Excel templates to support their team’s workflows, they’ll soon be able to prompt AI to generate custom web apps tailored to their use cases. For the most popular apps built, the IT or Innovation teams can support them with centralized support, management and scaling assistance.
In this issue there are:
12 Startup Fundings
19 Policy and Regulatory Changes
5 New National Infrastructure Projects & Priorities
0 New investment funds
2 Acquisitions
4 News articles
57 new jobs posted - view here
Reading time: 15 min
Startup Funding
HR
Miter, a San Francisco startup, raised $23m in funding. They are developing a platform for contractors and field services industries which provides human capital management, field operations, and expense management solutions such as time tracking, payroll compliance and reimbursements. More here.
Green Materials
Sublime Systems, a Massachusetts startup, received investment from Suffolk Technologies. They develop low carbon cement. More here.
Related:
Why Microsoft Just Signed a Deal for Green Cement
Under the contract, Microsoft can purchase up to 622,500 metric tons of Sublime’s cement over a period of six to nine years.
Wull Technologies, a UK startup, raised £300k in funding. They develop rigid insulation panels made from sheep wool that can be used in buildings. More here.
Autonomous Equipment / Physical AI
Sensmore, a German startup, raised $7.3m in funding. They have developed an automation system combining cameras, 4D radar and AI which can retrofit fleets such as haul trucks, dumpers and wheel loaders enabling real-time automation of complex tasks such as load & carry in production environments. More here.
Notes:
They aim to automate machines which operate in harsh, complex and unstructured environments.
It means their technology stack is transferable across sectors such as construction, mining, agriculture and defence.
Monitoring
Converge, a London startup, raised $22m in Series A funding. They have developed concrete monitoring technology which uses a sensor that can be embedded in concrete pours delivering data on performance, temperature and strength development and they offer an AI product which can determine which type of concrete mix would be best for a project. More here.
Notes:
These solutions can be incredibly valuable for critical works which rely on the concrete to cure.
For example on one construction site I worked on, we completed overnight concrete slab replacements at an airport.
We had to be on site for hours after to ensure the concrete cured correctly and to receive the lab strength test results showcasing that the taxiways could be reopened to aircraft traffic.
Having a sensor allows flexibility in terms of remote monitoring but also additional data to more accurately understand strength development.
For me it would have meant an hour or two of more sleep as I would have been able to see exactly when the slab met the minimum threshold instead of having to wait for the 4 hour lab result.
Finance
Ontik, a London startup, raised $3.7m in Seed funding. They automate trade credit for B2B wholesalers, automating the order-to-cash cycle including issuing credit terms, following up on payments, resolving disputes and syncing with ERPs. More here.
Notes:
The company is targeting the UK building materials sector, a £100 billion market, which has tight margins, high transaction volumes, and fragmented operations making it ripe for automation.
Mura, a New York startup, raised $4.5m in Seed funding. They are developing a tool to help HVAC and field service operators to be paid faster by automating order-to-cash processes. More here.
Digital Twins
Reconstruct, a Californian startup, raised a strategic investment round from investors including Nemetschek Group. They develop digital twins for capital assets such as commercial and industrial buildings, airports and hospitals supporting remote monitoring, infrastructure inspections and progress monitoring of job sites. More here.
Supply Chain
Brik, an Indonesian startup, raised $10m in funding. They are building a platform for the online ordering and delivery of construction materials across Southeast Asia. More here.
Notes:
The press release refers to Brik’s use of a ‘cloud manufacturing’ model.
While the exact meaning is unclear, their website suggests they operate as an online ordering and tracking system for construction materials.
For example, they show that for concrete, users can place orders, schedule deliveries, track shipments in real time, and remotely monitor mix designs and production results.
It’s likely that they act as a digital intermediary, managing procurement manually (e.g calling up suppliers for delivery) and uploading delivery records.
As adoption grows, they will likely secure fractional supply guarantees from local plants in various regions and onboard them directly onto the platform.
This approach enables Brik to scale without taking on heavy capital costs, leveraging tech-enabled coordination over asset ownership.
Related:
Robotics
Roboforce, a Californian startup, raised $5m in funding. They have developed a hyper accurate robot work which is able to complete tedious, repetitive tasks initially focusing on the utility scale solar farm market automating the outdoor construction, inspection, and maintenance. More here.
Fleet Management
remberg, a German startup, raised $15m in Series A+ funding. They are developing an AI powered maintenance platform which prevents and solves unplanned downtime. More here.
Notes:
The startup initially found traction in the industrial / manufacturing segment but is now also servicing the construction and field services industries.
Their solution assists with tracking construction machinery and equipment as well as undertaking preventative maintenance.
In the case of an equipment malfunction, workers can scan a QR code and instantly access an AI chat assistant which reportedly delivers precise troubleshooting instructions based on the machine’s history and existing data.
Alternative Power Systems
SparkCharge, a Massachusetts startup, raised $15.5m in Series A-1 funding. They have developed a portable (mobile) electric vehicle charging system powered by batteries or generators without the need for permanent infrastructure. More here.
Notes:
As construction firms work to meet climate targets, many are exploring electric vehicles (EVs) for their workforce commutes.
A key challenge is the lack of charging infrastructure on-site, as during the construction phase there is no permanent infrastructure and the site may not yet be connected to the grid.
SparkCharge’s solution provides a viable alternative.
Policy and Regulatory Changes
US
House GOP budget ‘worse than feared’ for clean energy
The bill terminates most technology-neutral clean energy tax credits for projects placed in service after 2028 and those that begin construction more than 60 days after the bill’s passage.
It also tightens restrictions on foreign entities’ involvement in projects.
Nuclear projects have more time to qualify for the credit.
The bill is advancing to the Senate, which is expected to take it up next month.
Trump Signs Orders to Revive US Leadership in Nuclear Power
President Donald Trump on Friday signed orders meant to accelerate the construction of nuclear power plants.
This includes small, untested designs that offer the promise of rapid deployment but haven’t yet been built in the US.
Former President Joe Biden last year laid out a plan to triple US nuclear capacity by 2050, and Trump’s new plan aims to quadruple it.
One of the orders also aims to get 10 large, conventional reactors under construction by 2030.
Trump’s nuclear initiative also would encourage the use of government financing to support the restart of shuttered nuclear plants.
TVA is first US utility to apply for an SMR construction permit
The Tennessee Valley Authority became the first American utility to submit a small modular reactor construction permit application.
The application is a key step in TVA’s plan to build a 300-MW SMR by 2032.
Non-nuclear construction could begin next January “or sooner” as the NRC works through an expected two years of review and six months of public hearings.
NYC launches ‘microhub’ pilot to reduce truck delivery congestion, pollution
The ‘microhub’ pilot program will provide curb space for delivery trucks and couriers.
It will create designated spaces for Amazon, Net Zero Logistics and UPS on the Upper West Side.
Companies’ delivery trucks will be able to transfer packages to cargo bikes, pushcarts and zero-emission vehicles to complete the last leg of deliveries.
Notes:
This is a reimagining of the curb and I am curious to see how effective this pilot is, the footprint of the ‘microhub’ and the supporting infrastructure required.
Related:
US lifts ban on New York offshore wind project after natgas pipe compromise
The Trump administration has lifted a month-old stop-work order on Empire Wind, a $5 billion wind farm project off the coast of New York.
The deal to resume work could revive plans to build the proposed Constitution natural gas pipeline from Pennsylvania to New York.
This project was cancelled in 2020 after years of regulatory and legal battles over environmental and other concerns.
Senate panel backs bills targeting New Jersey data centers
A New Jersey Senate panel approved another series of bills meant to reduce the impact of electricity prices that are set to soar on June 1.
The bills, which cleared the Senate Environment and Energy Committee in divided votes, would, among other things:
Raise data centers’ share of electricity costs.
Boost construction of energy storage
Create an automatic approval process for residential solar projects.
Scaffold Law reform bill could cut billions in construction costs
Rep. Nick Langworthy (R-NY) has introduced the Infrastructure Expansion Act.
This is a federal bill that would reform New York’s 139-year-old Scaffold Law by preempting it on federally funded construction projects.
The proposal aims to eliminate the state’s absolute liability standard in favor of a comparative negligence approach, aligning New York with every other U.S. state.
The bill is now under committee review in the House and if passed, it would affect all federally funded construction in New York.
New Arizona law allows construction work to start earlier
A new law that took effect requires cities and counties to allow construction activities to begin by 5 a.m. on weekdays between May 1 and Oct. 15.
The legislation signed by Gov. Katie Hobbs actually says that companies can begin pouring concrete, whether for new developments or a neighbor installing a new driveway, an hour before construction starts.
Local governments still retain the power to set Sunday construction schedules.
This is to both expedite construction and ensure that workers gain some protection from the summer heat.
US plans to cancel 7 conditional commitments for green projects
The US Department of Energy reportedly plans to cancel seven major loans and loan guarantees that had been conditionally approved under the Biden administration.
The list includes two projects that were still scheduled for completion by their sponsors.
Four projects were already previously cancelled by their companies.
Altogether, the seven cancellations amount to $8.45 billion.
US DOT opens $1.5B funding round for transit buses and bus facilities
The 2021 Infrastructure Investment and Jobs Act authorized $5.6 billion in funding over five years for the low-no grants program and $5.1 billion for the bus facilities program
The fiscal year 2025 grants focus on strengthening domestic bus manufacturing.
Wisconsin retired nuclear plant gets a second look
EnergySolutions intends to apply for an early site permit from federal regulators to install new nuclear generation at the retired Kewaunee Power Station.
If the project moves forward, construction could begin in the early 2030s and the new plant could come online in 2038 or 2039.
Indiana launches HVAC rebates as funding limbo slows national rollout
Indiana launched its Home Energy Rebates programs under the Inflation Reduction Act (IRA), becoming the first state to do so since President Trump took office.
The IRA in 2022 earmarked nearly $9 billion for states to provide point-of-sale rebates to consumers who make qualified HVAC upgrades.
However on January 20, the president signed an executive order freezing these funds.
A judge in April ordered the Department of Energy to resume disbursing funds as part of a lawsuit claiming the freeze is illegal.
However the agency hasn’t issued an official statement regarding the Home Energy Rebates since then.
Upending norms, the Senate votes to undo California's EV rules
The senate overturned a waiver allowing California to set its own air pollution standards for cars that are stricter than national regulations.
The Senate also voted to revoke two waivers related to heavy-duty trucks.
One allowed California to mandate zero-emission trucks, and the other permitted stricter emissions standards for new diesel trucks.
Notes:
This could have an impact on EV charging infrastructure deployment.
Additionally, investors may become more wary of supporting startups in this sector due to the rise in policy risk.
India
India sets construction waste recycling targets with new rules
The 2025 rules, set to take effect starting April 1, 2026, will place greater responsibility on waste producers and introduce mandatory recycling targets.
Waste from the country’s construction and demolition industry is expected to reach 165 million metric tons annually by 2030.
The new rules require:
People responsible for construction or reconstruction projects with a built-up area of 20,000 square meters (~215,000 square feet) or more must prepare a waste management plan.
This must assess the amount of waste expected and submit it to the local authority for approval.
They define extended producer responsibilities (EPR).
It requires producers to collect and segregate waste, store it safely, and ensure recycling or proper handover to authorized agencies or recyclers and producers must reach EPR recycling targets of 25% in 2025-26 and 100% by 2028-29.
The rules require that processed construction and demolition debris must be reused in certain construction activities with 5% in the next two years and 25% by 2030-31.
BMC mandates air quality monitors at Mumbai construction sites
The Brihanmumbai Municipal Corporation (BMC) has approved 15 models of low-cost air quality sensors.
These sensors are mandated by Bombay High Court for real-time air quality monitoring.
Builders must install sensors and display readings.
Germany
Germany drops opposition to nuclear power in rapprochement with France
Berlin has signalled to Paris it will no longer block French efforts to ensure nuclear power is treated on par with renewable energy in EU legislation.
The reversal comes as Merz (Chancellor of Germany) is seeking to explore ways for Germany to join France’s nuclear shield as a deterrent against future Russian aggression.
Merz, who won elections in February, has been critical of Germany’s decision to exit nuclear energy in 2011 saying it is depriving Germany of cheap and reliable electricity.
He has vowed to invest in new technologies, including small modular reactors and nuclear fusion.
This change leaves Austria as the only EU state strictly opposed to nuclear power.
Europe
Pathways2Resilience Second Call for Regions and Communities
Pathways2Resilience initiative opened its second call for funding.
They are offering €21mn (US$24mn) in sub-grants to help over 100 European regions and communities boost climate resilience.
UK
Great British Energy legislation passes through Parliament
The UK has launched a publicly-owned energy company to accelerate clean power deployment.
Great British Energy will invest in clean power projects across the UK as part of the government’s Plan for Change to become a clean energy superpower.
It is backed by £8.3 billion in funding.
Australia
There’s another feasibility hurdle to new housing projects
Builders will need to build houses with less embodied carbon to secure approval as Australia adopts rules to withhold planning consent from projects consuming too much carbon.
The National cabinet has a target of building 1.2 million new homes by June 2029.
Currently 31 per cent of Australia’s total emissions come from the built environment and 7 per cent from upfront, or embodied carbon.
National Infrastructure Projects & Priorities
US
$64 billion of data center projects have been blocked or delayed amid local opposition
The big takeaways from the report are:
Bipartisan Backlash.
Republican officials often raise concerns about tax incentives and energy grid strain, while Democrats tend to focus on environmental impacts and resource consumption.“AI Infrastructure” Isn’t Always Welcome.
Even when promised jobs and tax revenue, local residents often push back against data centers.Data Centers Are the New NIMBY Flashpoint.
From noise and water usage to power demands and property values, server farms have become a new target in the broader backlash against large-scale development.
Meta adds another 650 MW of solar power to its AI push
Meta secured 650 megawatts across projects in Kansas and Texas.
Meta said it signed the deal to power its data centers, which have been expanding to support its growing AI operations.
The company already has more than 12 gigawatts of capacity in its renewable power portfolio.
Europe
Microsoft expands European footprint amid global trade tensions
The company aims to increase its European data center capacity by 40% in the next two years.
This will boost its presence in 16 European nations.
Canada
Construction partner search starts for Robert Banks Terminal 2
The Roberts Bank Terminal 2 is a nation-building marine container terminal project at the Port of Vancouver.
It is expected to support over $100 billion in annual trade, create 18,000 construction jobs, and generate $3 billion in annual GDP.
The project has received consent from 27 Indigenous groups and passed federal/provincial environmental assessments.
North Macedonia
North Macedonia Forges £5 Billion Investment Alliance With UK
North Macedonia is set to receive as much as £5 billion ($6.6 billion) in funding from the UK.
The financing is roughly equivalent to North Macedonia’s projected 2025 budget revenues and will support investments in rail and cargo infrastructure, hospitals and defense.
The deal is due to be formally signed in London next week, followed by several smaller agreements on specific projects.
Acquisitions
Procore has announced the acquisition of Novorender and FlyPaper.
The aim of the acquisitions are to ‘unlock BIM’ and connect critical BIM data seamlessly across the Procore platform.
Novorender is a 3D model viewer and BIM platform using a patented technology which can process and combine models faster allowing 3D rendering at every phase of the build lifecycle.
FlyPaper, once integrated, will provide automated 3D design coordination, clash detection, and collaboration capabilities.
News
Our Thesis on Sensors (2048 Ventures)
They seek to find businesses that use low-cost sensors to capture proprietary and valuable data.
Their belief is that certain types of hardware plays are much more likely to achieve that exponential growth curve.
The critical components of these hardware companies is that they:
Use low cost hardware.
Use that hardware as a sensor, sometimes literally and sometimes figuratively, to capture proprietary and valuable data.
Sell SaaS that uses this data to perform and control mission critical workflows.
Meet the Architecture Firm That Runs on AI
Cove Architecture is a full-service architecture practice propelled by a proprietary two-part AI framework following an AI-driven, human-centered approach.
Legal abroad: Doing business in Indonesia's fast-growing construction industry
The article provides an overview of the Indonesian construction sector.
This is the fourth-largest sector in Indonesia’s economy.
In 2024, its construction market was valued at US$280bn.
Is Energy and Building Management Tech Poised for a Big M&A Moment? (Thesis Driven)
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.