Last Week in ConTech - 4 November 2024
Air Taxi infrastructure + Germany to build hydrogen pipe network
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:
15 Startup Fundings
11 Policy and Regulatory Changes
1 US election policy updates
7 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisition
4 News articles
27 new jobs posted - view here
Reading time: 15 mins
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Startup Funding
Environmental reporting
Emidat, a German startup, raised €4m in Seed funding. They have developed software which helps manufacturers / suppliers understand the environmental impact of their products and easily generate Environmental Product Declarations (EPDs) reducing the cost and time it takes to develop by over 70%. More here.
[View open jobs - 2 roles in Sales]
Notes:
EPDs are third party certifications which are becoming incredibly important for the sustainable material industry.
The reason why is that when a material company makes a claim that their new cement is more sustainable (e.g. less carbon emissions) than the traditional alternative, we need a way to substantiate their claims.
EPDs involve undertaking a product life cycle assessment (LCA) to declare standardized information about the environmental impact of construction materials and products at each stage of their life cycle, from production through use to end of life.
This allows construction materials to be benchmarked and compared based on their environmental impact.
As regulation is increasingly focused on the use of sustainable materials, EPDs are being used to ensure that projects are meeting carbon emission targets.
For example, the Buy Clean California Act, which aims to reduce emissions released during the manufacture and transport of products used in public infrastructure projects, requires the submittal of EPDs for eligible materials on construction contracts.
Building Materials
Rare Earth Global, a UK startup, raised £1m in Pre-Seed funding. They are developing a hemp supply chain platform aimed at delivering products from hemp plants to industry. This includes the delivery of hempcrete which is a mixture of hemp stalks and lime used as a lightweight insulating material. More here.
LuxWall, a Michigan startup, raised $51m in Series B funding. They develop advanced vacuum insulated glass which is designed to improve energy efficiency in buildings by reducing heat loss and gain. More here.
Safety
FYLD, a London startup, raised $10m in funding. They provide a platform to improve the safety and efficiency of field teams by transforming video and audio footage into real time workflows, video risk assessments and analytics dashboards to eliminate paperwork, save time and improve safety. More here.
[View open jobs - 1 role in Sales]
Finance
Billd, a Texas startup, raised $17.5m in funding. They have developed financial solutions for commercial subcontractors such as access to working capital solutions like material financing (up to 120 day terms) and pay app advances. More here.
[View open jobs - 4 roles in Sales, 2 roles in Operations, 1 role in Legal]
Building Decarbonization
Merlin, a Californian startup, raised $31m in Series B funding. They design flexible, lightweight solar panels which can be tailored for various use cases including rooftops. More here.
Notes:
Merlin Solar is targeting Saint-Gobain, one of the largest roofing materials companies, to be a key customer including potentially adding to their solar shingles product.
measurable.energy, a UK startup, raised £4m in funding. They develop AI powered plug sockets which identify the usage pattern of plugged devices and turn power off when not in use to reduce electricity costs and carbon emissions in offices by up to 50%. More here.
Notes:
In offices, plug power accounts for up to 40% of total electricity usage with ~half of this wasted.
The smart socket automatically turns off power when it is not required (device not in use) and back on when it is required.
This solution has found traction in the construction, commercial real estate and public (hospital, universities) sectors.
Inspections & Monitoring
eSmart Systems, a Norway startup, raised €30m in funding. They have developed an AI based solution for the inspection and maintenance of critical energy infrastructure which uses virtual inspections and automated image based inventory of grid assets. More here.
Digital Twins
Neara, an Australian startup, raised AUD$45m in Series C funding. They develop digital twins of critical infrastructure for utilities allowing predictive modeling for safety and reliability risks, pinpointing effective remediation strategies and supporting decision making for grid investments. More here.
[View open jobs - 5 roles in Software, 1 role in Sales, 1 role in Customer Success, 1 role in HR, 1 role in Product, 1 role in Structural Engineering]
Home Services / Vertically integrated contractors
Homee, a Florida startup, raised $12m in Series C funding. They have developed an AI driven direct repair network for the Property and Casualty insurance industry. More here.
Notes:
Homee operates a curated marketplace of repair service providers (contractors) for the insurance industry.
This model appears to be a variation of the Cloud Installer Model by Foundamental.
For instance take their process:
A homeowner reports an insurance claim for a home repair which is assigned by the insurer to Homee.
Using the claims report, Homee assigns a ‘credentialed Homee Pro’ (likely a subcontractor) from their ‘pro network’ (marketplace of subcontractors).
The assigned Pro inspects the damage and provides a repair estimate to the insurer and homeowner.
Once the estimate is approved, they complete the repairs.
What the process highlights is that they are a vertically integrated tech enabled contractor servicing the Property and Casualty insurer market.
By offering a tech platform for insurers to easily upload claims, they are able to automate the process of inspections and claims by translating a standardized claim report into a work order.
They are also able to scale their reach by offering service providers on their platform with streamlined work orders, standardized expectations and guaranteed work.
As they begin to become the preferred repair network for insurers in a region, they will begin to secure guaranteed capacity from their service providers, offering utilization, revenue and cash flow certainty.
Once there is enough demand, they can hire / acquire subcontractors directly making them a ‘credentialed Homee Pro’ which offers a standardized process and quality certainty for the customer.
HomeBoost, a San Francisco startup, raised $4m in Seed funding. They have developed a DIY home energy assessment tool which allows homeowners to scan their home in 30 minutes and receive a custom report with recommendations, insights to improvements and any available rebates for energetic renovations. More here.
Notes:
This solution allows homeowners to identify improvements via a digital tool instead of scheduling an in person (and more costly) home energy audit.
In the EU, the residential building market classed as ‘poor energy efficiency’ is valued at €390 billion.
Energetic renovation contractors should consider partnering with / acquiring HomeBoost and using their solution to receive verified leads and standardized energy reports.
These can be used to create cost estimates for projects to resolve the issues identified.
Alternatively, HomeBoost should consider operating a network of vetted energetic renovation contractors whom they provide verified leads to in return for a referral fee.
In the long term they can acquire / directly hire contractors following the Cloud Installer Model playbook.
Supply Chain
Latii, a New York startup, raised $5m in funding. They are developing a supply chain platform for sourcing building materials using near and on-shoring manufacturing strategies to ensure efficiency in delivery and quality, initially focusing on doors and windows. More here.
[View open jobs - 1 role in Sales]
Notes:
I initially reported they raised $6.7m in funding on Oct 7 - this has been updated to $5m.
Sales
Voze, a Utah startup, raised $12m in Series A funding. They have developed a sales solution which is aimed at empowering sales professionals in graycollar industries allowing them to capture and organize information gathered during field visits, generate tasks lists and follow ups, and keep the managers / other business units informed of revenue opportunities. More here.
[View open jobs - 2 roles in Sales, 1 role in Customer Success]
Notes:
This solution is primarily targeted at the ‘industrials’ sector and has applicability for the construction sector.
It increases visibility and provides faster communication of information from the field based sales team to the office team ensuring sales opportunities are actioned quickly.
This is in contrast to the current system where a sales rep for a building material will visit a number of client sites and write notes at the end of the day / week.
The delay can lead to missed or buried revenue opportunities.
Workforce Management
Fingercheck, a New York startup, raised $115m in funding. They have developed a workforce management platform for small and medium businesses with ‘deskless’ workforces supporting onboarding, time and attendance, payroll, scheduling, shift management and others allowing owners to track and measure the actual profitability of a project. More here.
[View open jobs - 1 role in Sales]
Notes:
Construction is an industry they have found traction within providing payroll and HR solutions.
Surveying
Matter Intelligence, a Los Angeles startup, raised $12m in Seed funding. They develop advanced sensors using hyperspectral imaging which capture detailed images of Earth’s surface and atmosphere allowing it to detect and classify objects and materials which are invisible to traditional sensors. More here.
[View open jobs - 2 roles in Operations]
Notes:
This solution could transform asset and infrastructure inspection and monitoring.
The examples on their site show images captured via the sensors to the detail of classifying road as concrete (vs asphalt) and noting it is aged.
Generally, if we want to quickly understand an area for inspection and where to focus before going in the field, we use Nearmap (a satellite imagery provider).
These sensors go further being able to automatically classify infrastructure streamlining operations and potentially reduce the need for visual or in person inspections in non critical areas.
They also can be used to provide risk assessments of infrastructure (the example on the link is for residential - the classification detail is quite impressive).
Policy and Regulatory Changes
US judge blocks Texas transmission line building restrictions
A Texas law that restricts the building and operation of new transmission lines to companies already running such facilities was deemed unconstitutional as it discriminates against out-of-state energy providers.
The law had restricted the ability of power companies that did not own transmission facilities in Texas from obtaining approval from the Public Utility Commission of Texas.
The funding will go to 55 selectees across 27 states and territories.
The Clean Ports program will improve air quality at ports across the country by installing clean, zero-emission freight and ferry technologies along with associated infrastructure.
The funds will support the purchase of battery-electric and hydrogen-powered human-operated and human-maintained equipment.
It includes shore power systems for ocean-going vessels, battery-electric and hydrogen vehicle charging and fueling infrastructure, and solar power generation.
FAA finalizes pilot training, certification rules for air taxis
The Federal Aviation Administration finalized comprehensive training and pilot certification rules for flying air taxis.
The rule was called ‘the final piece in the puzzle for safely introducing these aircraft in the near term.’
The FAA said previously that air taxi operations will begin at a low rate, similar to helicopters, and using existing routes and infrastructure such as helipads and vertiports.
Some flying companies hope to begin flying commercial passengers as soon as 2025.
Notes:
If air taxis rise in popularity, it will result in an expansion of routes and vertiport infrastructure.
This provides an opportunity for construction companies with interest in the asset class increasing.
Back in April, Skyports, an owner and operator of vertiport infrastructure, raised $110m in funding led by ACS group, the largest construction group in Spain.
New real-time parking pricing signs appear in Courthouse
Arlington’s parking rates were previously capped at $1.75 per hour at short-term meters and $1.50 per hour at long-term meters.
Now, some spots cost as much as $3.25 per hour or as little as $1.25 depending on demand.
The goal of the initiative is to make it easier to park in areas that currently have high parking demand, encouraging drivers to go to less popular areas.
Notes:
Surge pricing was popularized by Uber and it’s interesting to see this concept mirrored in the public domain.
If successful, it’s likely to be copied across municipalities.
It’s unclear who the technology provider for this system is - once the product is sold to a municipality, it would be incredibly sticky (low churn).
Solar Ingot and Wafer Production Qualifies for 25% Investment Tax Credit Under CHIPS Act Final Rules
The U.S. Department of the Treasury clarified that solar ingot and wafer production facilities and equipment qualify for Section 48D 25% investment tax credit.
The section 48D investment tax credit is available for facilities that begin construction before 2027 and does not preclude facilities from qualifying for other applicable tax credits.
Notes:
Manufacturing facility construction continues to receive subsidies / tax credits as the US aims to increase its supply chain resiliency (and away from China) in key technological areas.
Grid-interactive efficient building systems need robust cybersecurity measures, DOE says
The DOE released a fact sheet on how building automation systems, distributed energy resources and other grid-interactive efficient building, or GEB, technologies must be developed and operated with cybersecurity protections.
Federal facilities managers must assess potential risks posed by GEB systems and understand how they can affect data confidentiality, integrity and availability at the buildings they are deployed.
The program provides funding for state departments of transportation to promote the use of data and technologies that allow for a more seamless flow of digital information replacing paper-based systems.
The goal of these projects is to save time and resources and deliver projects safely in a more cost-effective manner.
The grants were awarded on nine projects in eight States across the country.
The Accelerated Innovation Demonstration Program was funded to help de-risk government innovation and provide resources to use new technology in construction and project delivery.
It will fund innovations like innovative debris removal, enhanced work zone safety, integrating technology to support emergency responders, using drones to conduct infrastructure inspections, improving bridge design and developing more sustainable materials.
The funding is to promote the adoption of digital platforms that speed up and improve the delivery of transit construction projects while reducing costs.
It comes from the Accelerating Advanced Digital Construction Management Systems (ADCMS) Program which allows transit agencies to test digital construction technologies and capabilities in real-world construction project settings, determine their feasibility, understand the impacts, and determine the usefulness of the results.
California doles out $3.8B for transportation improvements
About $3.5 billion will come from the $1.2 trillion Infrastructure Investment and Jobs Act.
The funding is for bridge, highway, rail and freight corridor improvements.
Approximately 600 local governments and regional transportation authorities will receive money from the allocation.
Passenger rail, freight rail get $2.4B from Federal Railroad Administration
The funds will go to 122 intercity passenger rail and freight rail projects in 41 states and Washington, D.C.
It will be used for projects such as track improvements, replacing or renovating old bridges and procuring modern locomotives.
US election policy updates
Trump wants to "terminate" green spending. Here's what could stand in his way
The article breaks down how Trump could pull back money from the Inflation Reduction Act.
Pulling back this money would require congressional action, however he may explore workarounds as detailed in the article.
Notes:
This could have an impact on manufacturing facility construction.
National Infrastructure Projects & Priorities
US
Gulf of Maine offshore wind lease sale brings in $21.9 million in bids
The Bureau of Ocean Energy Management (BOEM) held the largest offshore wind lease sales, offering up eight swaths of ocean in the Gulf of Maine.
Four lease areas were sold, which if fully developed, could generate 6.8 gigawatts of electricity, or enough to power about 2.3 million homes.
China
China Three Gorges will invest US$10bn in 16.5 GW hybrid power project in China
China Three Gorges Renewables Group plans to invest nearly CNY72bn (US$10bn) in a large hybrid power base combining wind, solar, coal, and Battery Energy Storage System (BESS) in the Taklamakan Desert.
The project would include 6 units of 660 MW ultra-supercritical (USC) coal-fired power plants, 8.5 GW of solar PV panels, 4 GW of wind turbines, and 5 GWh of BESS.
China intends to supply 20% of its total energy consumption from non-fossil fuels in 2025, to achieve peak CO2 emissions before 2030, and to reach carbon neutrality in 2060.
Salto de Chira combines a pumped-storage hydroelectric power plant of 200 MW installed power capacity and a desalination plant.
The European Investment Bank (EIB), in 2023 signed more than €21 billion in financing for energy security in Europe.
These investments are helping Europe speed up its transition to sustainable energy and reduce its reliance on fossil fuel imports.
Germany
Germany Approves Plans for €19 Billion Hydrogen Network
The German Federal Network Agency said it approved proposals from transmission system operators for a 9,040-kilometer hydrogen grid.
It will be built out in the coming years and be fully operational by 2032.
It’s set to form a core network that will connect industrial hubs (such as steel producers) seeking to decarbonize.
60% of the network will be converted from existing gas pipelines, and the rest will be newly built.
Germany wants to replace their fossil fuel needs with hydrogen to achieve climate neutrality by 2045.
Singapore
Singapore Clears $24 Billion Link to Australian Solar
Australia-Asia Power Link plans to send 1.75 gigawatts of renewable electricity to Singapore, or about 9% of its current needs, through a 4,300-kilometer (2,670-mile) submarine cable.
Singapore’s Energy Market Authority deemed the project technically and commercially viable providing conditional clearance.
India
Green Municipal Bonds Grow as Indian Cities Seek Climate Funding
Seven Indian cities have or will soon be issuing green municipal bonds to fund water treatment, renewable energy and sustainable infrastructure projects toward climate action.
This is emerging as an option to fund sustainable infrastructure while balance sheets of state governments are constrained.
Vietnam
Vietnam to amend national power plan to include nuclear energy
Vietnam will amend its national power development plan, known as PDP8, to include options for nuclear energy and hydrogen.
The PDP8 is to raise the country's total installed power generation capacity from over 80 GW at the end of 2023 to over 150 GW by 2030.
Acquisitions
Simpro Group, an Australian business management software for trade and field services businesses, acquired BigChange, a UK job management software for field services businesses. More here.
News
The Truth About Tech in Construction: A Q&A with Suffolk Construction CTO Jit Kee Chin (thanks Gerard de Valence for the share)
Wall Street Giants to Make $50 Billion Bet on AI and Power Projects
KKR and Energy Capital Partners have agreed to invest a combined $50 billion in data-center and power-generation projects to support the development of artificial intelligence.
The investment is a bet on AI’s energy needs and the stress it is putting on the U.S. power grid.
Microsoft uses wood to build two data centers in Northern Virginia
Hydrogen Hubs Are Struggling. Why?
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.