Last Week in ConTech - 3 February 2025
ConTech startups are acting like PE Buyout firms.
Deep Insight: ConTech startups are acting like PE Buyout firms.
Last week Sifted reported on a new trend in how startups go-to-market. Startups have been acting like PE Buyout firms, acquiring and rolling up small companies to quickly gain market share.
The article was inspired by Harry Stebbings, a prominent podcaster and investor posting on Linkedin:
In Europe right now there are more companies doing roll up plays for vets, doctors, opticians and plumbers than AI companies.
It’s a trend we’ve been tracking at Last Week in ConTech, most notably with 1komma5° (sell and install solar panels, heat pumps, etc) who have done this at scale in Europe. Though we’ve started to see it in the US with Roofer.com (roof inspections via drones), who raised $7.5m to enter their second market, Austin, Texas—by acquiring one of the largest roofing contractors in the region.
This acquisition for growth strategy is gaining momentum, fueled by venture dollars. Like traditional PE firms, these startups roll up smaller businesses and integrate them into a central organization. The difference is these startups add a software layer on top, improving operational efficiency and margins.
The software advantage allows startups to acquire smaller firms at valuations traditional incumbents can’t match.
By leveraging economies of scale and technology driven efficiencies, they can maximize profits while accelerating regional expansion. And if a roll-up doesn’t work out? The assets can be sold for parts, minimizing downside risk.
For the construction industry, this could be a catalyst for tech adoption. Instead of competing only with industry peers, incumbents will soon face a new kind of threat—venture-backed startups growing via M&A, digitizing their core services while delivering them at a lower cost.
Just imagine if the next tech giant like Procore acquired DPR or Bechtel and forced 100% adoption of its platform. It would set a new industry standard—forcing every contractor to digitize just to compete.
In this issue there are:
9 Startup Fundings
13 Policy and Regulatory Changes
12 New National Infrastructure Projects & Priorities
0 New investment funds
0 Acquisitions
7 News articles
27 new jobs posted - view here
Reading time: 13 min
Startup Funding
Construction Management
Clovis, a French startup, raised €2m in funding. They have developed a construction management tool which centralises all the project data into one secure workplace and enables projects to be monitored in real-time as well as offering project management tools. More here.
Surveying
Canvas, a Denver startup, raised $10m in Series A funding. They have an app which allows users to scan a space with their iPad or iPhone and transforms this into editable as-built CAD files (in your preferred data format), floor plans, and measurement reports. More here.
[View open jobs - 2 roles in Software, 2 roles in Sales, 2 roles in Product]
Notes:
I haven’t used this software yet, but it’s easily one of the coolest things I’ve seen.
Instead of attempting to find old as-builts (or relying on original designs and updating them), this software lets you create as-builts on the spot.
It converts scans from a phone into an editable, layered, and highly accurate as-built model in your preferred software format.
I remember importing PDFs of plans into AutoCAD, scaling them by identifying a reference point on Nearmap (satellite imagery which is geo-referenced in CAD).
It was never truly accurate, yet we would complete early designs this way until surveying was completed.
Design
Motif, a San Francisco startup, raised $46m in funding. They are developing a platform which integrates 3D technology, cloud computing, and AI to help AEC professionals collaborate when designing modern structures. More here.
Notes:
They are currently building in stealth and have yet to launch their first product.
Green Materials
Keey Aerogel, a French startup, raised €18m in Series A funding. They produce silica aerogel from construction waste. More here.
Notes:
Keey Aerogel is an ultra-high-performance thermal insulator with applications in construction, industry and aerospace.
Aerogel is produced primarily in the United States and Asia and is expensive and polluting.
Energetic Renovations
Domna, a London startup, raised £70m in funding. They provide an end to end retrofit service to help landlords increase the energy inefficiency of their buildings. This includes software to assess portfolio’s quickly, on site retrofit assessments and design, identification of grants and lenders and tendering of works to their network of installers. More here.
[View open jobs - 1 role in Marketing, 2 roles in Other]
Notes:
Domna is following the 1Komma5 playbook for scaling.
This is where the startup acts as a traditional PE buyout firm, buying up a series of small businesses and rolling them into one (this is described in more detail in the deep insight above).
In the UK, 18m homes, over half of the UK’s housing stock, has poor energy efficiency.
Materials
Soil Connect, a New York startup, raised funding (undisclosed). They operate a marketplace for ‘dirt’ allowing contractors to easily buy and sell fill as well providing digital records of truck loads which assists with identifying dirt import and export related project delays. More here.
Trades
Roofr, a San Francisco startup, raised Series B funding (undisclosed). They are building an end to end roofing platform providing roofing sales technology such as roof measurements, instant estimates, invoicing, material ordering, job boards and more to help roofing contractors grow their businesses. More here.
[View open jobs - 2 roles in Sales, 1 role in Marketing, 1 role in Customer Success]
Rebuild, New York startup, raised $2.1m in funding. They have developed an operating system and estimation tool for restoration contractors serving in disaster-stricken communities. More here.
Water
Laiier, a London startup, raised $4m in Seed Extension funding. They have developed a liquid leak detection solution for commercial and industrial buildings replacing manual inspections and is used by construction companies for early water leak detection for new build construction. More here.
[View open jobs - 1 role in Customer Success]
Policy and Regulatory Changes
US
Trump Pauses Permitting for All Renewables on Federal Lands
The Department of Interior has issued an order suspending the ability of its staff to permit new renewables projects on public land.
The suspension lasts for 60 days and can only be overridden by “a confirmed or Acting official” in a number of senior roles in the Department.
Between January 2021 and December 2024, the Biden administration approved 45 renewables projects on public lands, totaling ~33 gigawatts of capacity.
Trump administration halts environmental litigation, sidelines lawyers, sources say
The administration has halted all pending environmental litigation.
They’ve reassigned four career Justice Department attorneys focused on environmental issues.
The memos order the division not to file any new lawsuits or other legal briefs.
Additionally, it orders to halt all pending settlements and consent decrees to give the new Republican administration time to reconsider previously agreed deals.
Related:
Trump administration asks for pause on Supreme Court cases
The four cases dealt with student loans and environmental issues.
Trump issues tariffs on Canada, Mexico and China
Trump signed three executive orders.
One executive order places 25% tariffs on goods from Mexico, while another installs 25% tariffs on goods from Canada and a 10% tariff on Canadian energy sources.
A third executive order levies an additional 10% tariff on imports from China.
Notes:
This will have an impact on the cost of materials in construction.
US judge temporarily blocks Trump from freezing federal funding
The Trump administration’s Office of Management and Budget (OMB) issued a two-page memo temporarily suspending all federal grants and loans.
The pause was intended to allow agencies to review grant and loan programs and make sure they align with President Trump’s many executive orders.
The memo was unclear in what it did and did not cover and according to it the federal government spent more than $3 trillion on federal assistance, such as grants and loans, in fiscal year 2024.
A judge has temporarily blocked the memo from being enacted and barred the Trump administration from reissuing the OMB directive under any other name.
The OMB has withdrawn the memo.
Judge rules against federal PLA mandate
A U.S. Federal Claims judge has ruled in favor of a group of construction companies.
They filed protests against the implementation of former President Joe Biden’s December 2023 executive order that mandated project labor agreements on federal contracts over $35 million.
The judge said the implementation of the mandate ignored federal agencies research indicating PLAs would be anti-competitive and relied on arbitrary and capricious presidential policy.
The Jan. 21 ruling only impacts those specific bid protests filed in 2024.
Trump Targets FEMA, Risking US Climate Resilience
Trump signed an executive order establishing a FEMA Review Council to advise on the agency’s ability to “capably and impartially address disasters occurring within the United States.”
The new Council will evaluate whether FEMA “can serve its functions as a support agency, providing supplemental Federal assistance, to the States rather than supplanting State control of disaster relief”.
Notes:
This executive order comes after Trump floated the abolition of the Federal Emergency Management Agency (FEMA).
He stated states should shoulder more of the financial burden of recovering from climate shocks like last year’s hurricanes and the ongoing Los Angeles fires.
DOL pauses contractor hiring discrimination enforcement after Trump order
The Office of Federal Contract Compliance Programs was ordered to cease and desist all investigation and enforcement of discriminatory hiring practices by federal contractors.
It follows a Jan 22 executive order which rescinded a 1965 executive order.
This order, in its most recent form, prohibited discrimination by federal contractors on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin.
The new rule aims to maximize the use of domestically produced manufactured products permanently incorporated in federal-aid highway and bridge projects.
It replaces the longstanding waiver that allows manufactured products used in federal-aid highway projects not to comply with FHWA’s Buy America requirements.
The rule will be rolled out in two phases.
For projects obligated on or after October 1, 2025, final assembly of all manufactured projects must occur in the U.S.
For projects obligated on or after October 1, 2026, in addition to the final assembly requirement, the cost of components of products that are mined, produced, or manufactured in the U.S. must be greater than 55 percent of the total cost of all components of the manufactured product.
California Points to Trump as It Drops a Clean-Trucks Mandate
California’s air regulator on Tuesday dropped a request to the EPA for a waiver that would have allowed it to force truckers to buy battery-electric and hydrogen fuel cell trucks.
The head of the agency withdrew the request because of concerns the Trump administration would deny it.
Notes:
This may have an impact on the construction of charging and hydrogen refuelling infrastructure in the state as well as the grants associated with them.
Legislation making kit home construction easier in Washington reintroduced to senate
Two bills introduced to the senate aim to streamline state and local permitting processes to build homes from kits.
These are:
SB 5249 would give cities and counties the ability to site kit homes where single-family homes are allowed and where permanent housing is not allowed.
SB 5552 would add a new state building code category for kit homes and prevent the State Building Code Council from adopting requirements that cost over $150 per square foot.
India
India to develop 100 GW of nuclear energy by 2047 for energy transition: govt
As part of this goal, the government will allocate 200 billion rupees ($2.3 billion) for research and development of small and modular reactors or SMRs.
The nation plans to have at least five locally-made SMRs by 2033.
Last year, the Indian government said there were 21 nuclear reactors with a total capacity of 15,300 MW at various stages of implementation in the country.
UK
£15m investment in research to help UK prepare for climate change
Researchers will work with business, industry and community bodies to develop long-term solutions to extreme weather and other effects of climate change.
This includes research into ‘Protecting urban spaces - DIY greening prescription for climate adaptation in urban streets.’
Canada
Canada Invests in Climate Change Adaptation to Keep Communities Safe in Atlantic Canada
They announced $8.8 million in funding for nine projects in Atlantic Canada.
The projects will aim to support the regions in adapting to a changing climate.
The funding came from a total investment of $39.5 million, announced in November 2024, to reduce climate change risks and build more-resilient communities across the country.
National Infrastructure Projects & Priorities
US
New solar plants expected to support most U.S. electric generation growth
U.S. power generation growth will be led mostly by new solar power additions over the next two years, according to the Energy Information Agency.
They expect 26 gigawatts of solar to be added in 2025, down from 37 GW in 2024.
U.S. energy consumption is expected to continue growing at its current rate of about 2% per year through 2026.
Chart: The biggest clean energy projects built in the US last year
Clean energy projects are growing in size due to economies of scale.
It’s cheaper on a per watt basis to install panels, turbines and battery cells at once than to split them into small projects.
The biggest solar project last year was the 690-MW Gemini Project in Nevada, which was paired with a 380-MW grid battery.
Most of these huge projects are located in Texas.
New York’s Biggest Solar Farm Gets $950 Million in Funding
The 500-megawatt project is expected to be complete in 2026.
The project is expected to help New York reach its goal of getting 70% of its electricity from renewable sources by 2030.
It’s one of 23 large-scale, land-based renewables projects awarded contracts in December by the New York State Energy and Research Development Authority.
China
China's 2024 overseas newly signed contracts hit record with green projects surging 12.7%
China's overseas contracted projects hit a record high, as newly signed contracts totalled $267.3 billion.
New contractors for energy-saving, environmental protection, and clean energy projects rose 12.7% to $49.26 billion.
This is likely as the Chinese government has ramped up efforts to encourage domestic companies to invest in green projects abroad.
Related:
"Artificial Sun" Achieves 1,066-Second Plasma Operation
This achievement is a step forward in fusion power research.
The goal of developing an ‘artificial sun’ is to replicate the nuclear fusion processes occurring in the sun.
Unlike nuclear fission (used by nuclear plants) nuclear fusion doesn’t release any harmful by products,
If successful, it would provide a clean and virtually limitless energy source.
India
India’s construction sector projected to scale $1.4 trillion by 2047
Billionaire Ambani is Building World’s Biggest Data Center
Reliance Group is building what may become the world’s biggest data center by capacity in India.
It would be located in the town of Jamnagar and expected to have a total capacity of three gigawatts.
The largest data centers operating now are less than 1 gigawatt.
Nepal, India agree to build two power lines, upgrade three
Nepal and India have reached a new deal on construction, upgrade and investment modalities for five transmission lines.
There is ~11,000 megawatts of energy from various hydro projects in the pipeline.
As per the agreement, India will have a 51 percent stake in the transmission lines on its territory while the Nepali side will have 49 percent stake and vice versa in Nepal.
Europe
Solar Produced More Power Than Coal in EU for First Time in 2024
The milestone is the latest sign of coal’s decline in the EU.
Solar generation in the EU jumped about 22% last year to around 304 terawatt hours.
Coal power fell nearly 16% to just over 269 terawatt hours.
UK
One of ‘Europe’s largest data centre campuses’ approved
The project has an estimated construction value of approximately £3.75 billion.
The facility will cater for up to two million sq ft of floor space.
Big Tech
Meta to spend up to $65 billion this year to power AI goals, Zuckerberg says
As part of the investment, Meta will ramp up hiring for AI roles and build a more than 2-gigawatt data center.
They plan to bring about 1 GW of computing power online in 2025.
Earlier this month, Microsoft said it was planning to invest about $80 billion in fiscal 2025 to develop data centers
Amazon.com said its 2025 spending would be higher than an estimated $75 billion in 2024.
Taiwan
Drone Makers Looking to Steer Clear of China Fear Beijing’s Wrath
Taipei has plans to invest at least $1.35 billion over four years in its effort to foster domestic drone capacity and cut out China.
U.S. drone maker Skydio experienced the perils of relying on Chinese supply in October, when Beijing blacklisted the company.
Notes:
This will have an impact on manufacturing construction spending.
With the new administration, it is likely that further investment will be made in developing critical technology supply chains in friendly nations.
News
Labor shortage to continue impacting construction in 2025
The Associated Builders and Contractors (ABC), found that approximately 439,000 net new jobs are needed this year.
In 2026, the industry will need to bring in 499,000 new workers as spending picks up in response to an expected drop in interest rates.
For every $1 billion in construction spending, 3,550 new jobs are needed.
U.S. vocational schools see second year of double-digit growth
Total enrollment at vocational-focused schools grew 13.6 percent to 923,000 students in Fall 2024.
This built on a 16 percent increase in 2023.
HVAC programs at these schools saw enrollment grow 27 percent to 25,000 students — a 41 percent jump from 2020.
The trades are attracting younger talent through apprenticeships, too, with the number of 16 to 24-year-olds in registered programs more than doubling between 2013 and 2021.
These Roads Aren’t Built for Wilder Weather Driven by Climate Change
Important motorways across the world weren’t designed to withstand more extreme temperatures and rainfall.
A Nationwide Analysis of Infrastructure Development (
)Real estate firms pivot to energy development amid booming data center demand
Interview with Brendan Wallace, co-founder of Fifth Wall, a venture capital firm.
China’s Large and Mysterious Dam Project Is Alarming Neighbors and Experts
Why Germany ditched nuclear before coal – and why it won’t go back
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.