Last Week in ConTech - 27 May 2024
Energy is the primary bottleneck for AI + Microsoft explores decarbonizing its construction supply chain
In this issue there are:
16 Startup Fundings
9 Policy and Regulatory Changes
9 New National Infrastructure Projects & Priorities
1 New investment fund
0 Acquisitions
6 News articles
Reading time: 15 mins
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Startup Funding
Design
CLT Toolbox, an Australian startup, raised $1m in bridge funding. They develop mass timber software which provides structural engineers with tools to design complex timber structures and assists with sustainable material sourcing. More here.
AI
SpatialAI, an Australian startup, raised AU$5.1m in Seed funding. They are developing a generative AI solution for the construction sector including providing VR walkthroughs for early design decisions, real-time progress tracking with automated reporting and advanced data collection for risk mitigation and insurance claims. More here.
Notes:
The demo video on their website has people on a construction site using Apple Vision Pro to review drawings and interact with each other.
This is the first application of Apple Vision Pro I have seen on site.
Sustainable Materials
Fiberwood, a Finnish startup, raised €7.7m in funding. They have developed a process to provide wood fiber-based and eco-friendly insulation for the construction industry from forestry side streams and other natural fibers. More here.
BamCore, a San Francisco startup, raised $13.9m in funding. They have developed a sustainable structural framing system which uses bamboo based building materials. More here.
Smart Cities
Glydways, a San Francisco startup, raised $20m in Series B funding. They have developed an on demand high capacity mobility system which uses autonomous personal ‘Glydcars’ which move riders safely in dedicated lanes. More here.
[Hiring - 2 roles in Marketing, 5 roles in Software, 1 role in Design]
Notes:
In the future I believe cities will have ‘structured autonomy.’
This is where certain parts of the cities will be closed to human driven vehicles and will only allow autonomous vehicles (AV).
It is beneficial as the environment is highly controlled and predefined, requiring a smaller infrastructure footprint (less and smaller lanes) and supporting on demand transit.
Gyldways is building towards that vision by providing on demand vehicles which move on dedicated, closed routes.
In this future vehicles will become commoditized as features and driving experience is less important compared to technology and comfort (the vehicles are movement pods).
This is why Google and Apple are focused on owning the software layer via Android Auto and Apple CarPlay.
Flood Modeling
7Analytics, a Norwegian startup, raised €4m in Seed funding. They have developed an AI solution which provides high precision flood and landslide prediction which is used by governments, asset owners, architects and engineers to create more resilient infrastructure which is increasingly impacted by climate change related weather events. More here.
Compliance
Spoor, a Norwegian startup, raised $4m in Seed funding. They have developed an AI platform for detecting birds near wind farms. More here.
[Hiring - 1 role in Sales]
Notes:
In the U.S wind farms have to comply with the Endangered Species Act and the Migratory Bird Treaty Act.
Regulators are also particularly strict in the U.S. about how wind turbines could impact American Bald Eagle populations.
Wind farm development can be delayed or stopped due to impact to native bird populations.
This solution addresses a significant environmental regulatory concern which impacts the deployment of wind farms and renewable energy and reduces project risk.
Weather
WeatherXM, a Swiss startup, raised $7.7m in Series A funding. They design and build weather stations to provide hyperlocal weather data and use blockchain technology to share the data. More here.
[Hiring - 2 roles in Marketing, 1 role in Finance, 1 role in Design]
Notes:
WeatherXM is building a decentralized physical infrastructure network (DePIN).
DePIN is the application of blockchain technology and decentralization principles to physical infrastructure and systems.
They decentralize the control and management of physical infrastructure which means that instead of a single central authority managing the infrastructure, the network is governed by a distributed group of stakeholders.
DePINs were proposed as a solution to create transparency in the supply chain and environment monitoring is another possible use case.
Electrification
Harbinger, a Los Angeles startup, raised $13m in Series A extension funding. They have developed a scalable electric powered stripped vehicle chassis which can support medium-duty body types such as walk-in vans, box trucks and others. More here.
Notes:
Their solution provides power trains for medium duty commercial vehicles offering opportunities to electric the construction delivery and logistics sector.
Water
Subeca, a Dallas startup, raised $6m in Series A funding. They have developed a Smart Water meter register which retrofits into most existing water meters to make them ‘smart’ and transmit data to utilities and their customers. More here.
Lumo, a Californian startup, raised $7m in funding. They develop smart irrigation solutions which can be controlled easily via a smartphone allowing remote monitoring of flow rates. More here.
Notes:
As the impact of climate change and water scarcity rises, smart irrigation solutions will rise.
While this solution is initially targeting vineyards, a future use case is for local parks and sporting fields which require watering but are increasingly impacted by regulations.
An additional use case is that concrete is often watered 5-10 times a day for the first 7 days to assist with curing.
Could a smart irrigation system which is easily set up at low cost automate this?
Ketos, a San Francisco startup, raised $10m in funding. They develop automated and real time water analytics and intelligence which improves efficiency, operations and compliance for municipalities, industrial and agricultural applications. More here.
[Hiring - 1 role in Finance, 1 role in Operations, 2 roles in Other]
Notes:
Municipalities have strict water monitoring regulations to reduce pollutants and protect water quality.
Automating this monitoring process is valuable.
Renewable Energy
Aeromine Technologies, a Houston startup, raised $9m in Series A funding. They develop rooftop ‘motionless’ wind turbines which are placed on large commercial buildings, factories or warehouses. It requires 10% of the space of a solar panel and provides 5 kW of capacity per unit. More here.
Other
Overland AI, a Seattle startup, raised $10m in seed funding. They provide off-road autonomy (self-driving) solutions for ground vehicles which is challenging as there are no detailed maps, large swaths of training data or the ability to fall back on remote assistance. While it is initially aimed at the defense sector it has applications for remote construction sites and heavy equipment which face similar challenges. More here.
[Hiring - 1 role in Product, 1 role in Operations, 2 roles in Sales, 7 roles in Software, 1 role in Other]
Arkeus, an Australian startup, raised $15m in funding from the Victorian government. They have developed a hyperspectral Optical Radar (HS-OR) system to provide real time understanding and monitoring of areas. Initially focused on the defense sector, the solution may have applications with the construction sector in monitoring. More here.
[Hiring - 1 role in Software, 1 role in Product]
Coactive, a Californian startup, raised $30m in Series B funding. They have developed an AI which manages, categorizes and retrieves visual data such as images and videos for applications ranging from intelligent search to video analytics without requiring metadata or tags. More here.
[Hiring - 9 roles in Software, 1 role in Marketing, 2 roles in Product, 2 roles in Sales]
Notes:
The solution allows for companies to generate value from massive volumes of unstructured visual content.
While not directly targeting the construction industry, it has applications as it allows for insights from unstructured visual data to be unlocked.
Policy and Regulatory Changes
Trump makes election vow to end offshore wind immediately
Donald Trump has pledged to immediately put an end to offshore wind projects if he wins.
He claims that this is “the most expensive energy” and that “wind mills” kill both birds and whales.
In addition, he pledged to terminate Biden’s electric vehicle mandate, also on day one.
At present, the US aims to deploy 30 GW of offshore wind capacity by 2030.
Schumer: Permitting reform deal would be ‘virtually impossible’
Lawmakers have been working for nearly two years to create an agreement, which would speed up the process through which energy and other infrastructure projects are approved.
Senate Majority Leader Chuck Schumer stated that reaching a deal on permitting reform would be “virtually impossible.”
Notes:
Permitting continues to be a key bottleneck for infrastructure construction.
With the growth in renewable energy and the required upgrades to the grid, permitting is becoming a critical issue.
Could we start to see Microsoft making offtake agreements for low carbon material producers such as cement to scale up supply? (this is currently a key challenge)
Warren’s ‘Build Green’ Act Could Give Transit the Funding Left Out of Biden’s Climate Push
The BUILD GREEN Act has been reintroduced.
It would authorize the DoT to distribute $500b over 10 years to electrify and modernize public vehicles and rail and build new electric transportation infrastructure.
The bill was originally introduced in 2021 and began as an effort to electrify the nation's entire vehicle fleet.
Legal battle over NYC’s building emissions law resurfaces in appellate court
A lawsuit contesting New York City’s building emissions law, Local Law 97, which requires buildings over 25,000 square feet to cut 40% of their emissions by 2030 and reach an 80% reduction target by 2040 has been reinstated.
This suggests that Local Law 97 may conflict with the state’s overarching climate goals outlined in the CLCPA.
Notes:
It is incredibly difficult to enact climate legislation in the US due to the amount of litigation which occurs and this continues to impact climate goals.
In the US (unlike EU), climate legislation is enacted from the bottom up from Municipalities and States rather than being preceded by the Federal government.
The Interim CEO of American Electric Power Company, one of the largest electric utilities in the United States, testified in a Senate hearing.
He stated that demand for electricity was flat for two decades and it is now changing.
A few years ago a big factory might need 100 megawatts, or enough to power about 100,000 homes.
Now a single data center could require 3-15x this amount of power for a single site.
Notes:
The demand for power and the need to ‘win’ in the AI arms race is:
Increasing the construction of renewable energy infrastructure.
Increasing the investment in power grid expansion.
Impacting the decommissioning of fossil fuel plants - these could be needed as a reliable backbone to energy infrastructure.
Related:
UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026
The government says that fully self-driving vehicles could be on U.K. roads within two years.
The new law also outlines that drivers will not be held liable for accidents while their cars have autonomous driving modes enabled.
Instead Insurance providers, software developers, and automakers are held responsible under the AVA.
Colorado takes a new – and likely more effective – approach to the housing crisis
Colorado signed a bill requiring local governments to plan and zone for more apartments and condominiums near transit stations.
They also signed a law allowing accessory dwelling units – small apartments located on the same lot as a single-family house – to be constructed in large cities and towns.
Calgary city council passes amended rezoning bylaw after longest meeting ever held
A bylaw to rezone most of Calgary's residential areas and allow higher-density housing was passed.
The use of Blanket rezoning is just one of the components of the city's housing strategy that has been approved to increase housing affordability.
Heat resilience research centers unveiled by Biden administration
To help communities better prepare for worsening extreme heat, the Biden administration provided $4.55 million to establish research centers on heat monitoring and heat resilience.
Related:
OSHA heat standard clears regulatory hurdle
The Department of Labor is closer to publishing a rule which protects construction workers from heat stress and illness.
National Infrastructure Projects & Priorities
US
Microsoft Imposes New Energy Requirement on Suppliers in Effort to Reduce Its Climate Impact
Microsoft will ask its main suppliers to use 100% carbon-free energy by the end of the decade.
The announcement comes as it noted a 30% rise in emissions due to building new AI infrastructure and tackling the emissions from its supply chain.
Scope 3 emissions, those relating to supply chain, were up 31% for 2023 vs 2020.
It primarily is due to the construction of more datacenters and the associated embodied carbon in building materials, as well as hardware components such as semiconductors, servers, and racks.
Notes:
Microsoft has an outsized influence over the tech sector due to its extensive supply chain and its dominant position within the market.
They mention building materials as having an impact on embodied carbon and Scope 3 emissions.
Given the size of the data center construction market and Microsoft’s dominant position, this will impact the testing and adoption of sustainable materials.
Related:
Microsoft plows $3.3B into data center at former Foxconn site
Microsoft to double new data center capacity this year - report
US sanctions Chinese hackers accused of targeting critical infrastructure
The Biden administration sanctioned two Chinese nationals and a Wuhan-based company Monday that allegedly targeted critical infrastructure sectors in the U.S.
Notes:
The White House recently updated its blueprint for protecting infrastructure from hackers.
They formalized the role of the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) as the lead agency tasked with protecting infrastructure from bad actors and natural hazards.
As infrastructure is increasingly operated and managed in the digital domain, cybersecurity and critical threats are becoming concerns for governments with investment and policy reflecting this.
National Grid plans 5-year, $35B investment in New York, Massachusetts
National Grid on Thursday announced plans to invest $35 billion in New York and Massachusetts to harden the region’s electric grid against extreme weather, reduce emissions and help the states meet their clean energy goals.
The DOE transmission needs study found that the region needs a 255% increase in transmission development to support clean energy plans in New York and Massachusetts.
China
China retaliates against the US and EU with anti-dumping probe
China has launched an anti-dumping probe into chemical imports.
It is probing imports of polyoxymethylene copolymer, a thermoplastic widely used in the consumer electronics and automotive industries, from the EU, the US, Japan and Taiwan.
This is seen as retaliation for the trade barriers the US imposed last week.
Musk pushes plan for China data to power Tesla's AI ambitions
Tesla has been developing plans for a data center in China to train the algorithm needed for more fully autonomous vehicles.
They seek to transfer EV driving data to the US and would need a local partner for the China data center.
It is a key part to power the global development of its self-driving system.
Notes:
This announcement comes on the heels of Biden placing trade restrictions on China and with China responding in kind.
It shows the difficulty for firms to untangle themselves from the market and this will continue to impact infrastructure construction.
Australia
Federal Budget 2024: Billion dollar detail to make Australia 'better for our kids' future'
Australia has announced a $22.7b investment into renewable energy manufacturing.
Notes:
This is in line with recent US and EU policy to spur local clean energy manufacturing capability.
This will likely result in growth in the construction manufacturing sector.
Australia unveils new green hydrogen subsidy for every kilo of H2 produced over a ten-year period
The Australian government has announced a new Hydrogen Production Tax Incentive (HTPI) that will pay developers A$2 (US$1.32) per kilo of green H2 over a ten-year period, starting from 2027.
This is less than half as generous as the similar US hydrogen production tax credit, which offers up to US$3/kg depending on lifecycle greenhouse gas emissions.
It is more than twice as high as the subsidies given to green H2 producers in the first European Hydrogen Bank auction.
Notes:
Hydrogen is increasingly becoming a part of the renewable energy conversation.
This will spur manufacturing within Australia and the building of specialist construction capability.
Related:
Chile will provide up to $10m (up to 60% of total costs) for the construction of new electrolyser factories or assembly plants in the country.
The aim is to contribute to the sustainable productive development and enablement of the green hydrogen industry in the country.
Manufacturing facilities receiving the subsidy will be “expected” to be in full operation within five years of being awarded the subsidy.
12.8GW of green hydrogen projects have already been announced in Chile’s sunny northern region of Antofagasta and windy southern region of Magallanes.
Africa
Google Builds First Subsea Cable Connecting Africa to Australia
Google announced construction of the first ever fiber optic route to directly connect Africa with Australia.
This follows the construction of a cable by Google to Africa and Europe.
It will be anchored in Kenya, and will pass through Uganda, Rwanda, Democratic Republic of the Congo, Zambia, Zimbabwe, and South Africa.
Related:
Investment funds
Blisce, a Parisian VC, announced a $162m fund to invest in materials, food and construction startups. More here.
News
Cutting Through the Hype — Essential Questions to Ask Before Hiring an A.I. Company (Nate Fuller)
Turner goes all in on EV tech for carbon reduction
New York City-based Turner Construction has set a goal of net-zero emissions by 2040 and has implemented several initiatives to get there, including steps to fully electrify its vehicle fleet by 2028.
Sublime Systems Is Leading The Transition To Low Carbon Cement In Boston
Sublime Systems, a low carbon cement producer, announced their first commercial project in Boston.
BlackRock in talks with governments about investments to power AI
The BlackRock CEO estimates trillions of dollars are required to build AI data centers.
Data centers are likely to be built where power supply is cheaper, raising the need for state subsidies in areas where energy costs are not competitive.
Japan stated it envisages the need for electricity output to rise 35% to 50% by 2050 due to growing demand from semiconductor plants and data centers backing AI.
Holcim breaks ground of state of the art GO4ZERO plant in Belgium for Net Zero cement
GO4ZERO is an EUR 500m+ project in Belgium to advance Europe’s decarbonization
The plant is engineered to produce 2 million tons of net-zero cement per annum by 2029.
It will source 95% of its energy from alternative fuels.
30% of its raw mix will come from partly decarbonized alternative raw materials - predominantly waste generated by other industries.
Scammers siphon $25M from engineering firm Arup via AI deepfake ‘CFO’
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.