Last Week in ConTech - 6 May 2024
Are point solutions obsolete and why do pilots of great solutions fail?
In this issue there are:
15 Startup Fundings
8 Policy and Regulatory Changes
5 New National Infrastructure Projects & Priorities
1 New investment funds
2 Acquisitions
11 News articles
Reading time: 13 mins
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Startup Funding
Green Materials
Oxara, a Swiss startup, raised a Pre-Series A funding round (undisclosed). They have developed a cement-free chemical mixture which turns locally available excavation waste into eco-friendly building materials. More here.
[Hiring - 1 role in Sales, 1 role in Other]
Kubik, an Ethiopian startup, raised $1.9m in Seed extension funding. They have developed an approach which involves upcycling plastic waste into low carbon, durable and affordable building materials such as bricks, columns, beams and jambs. More here.
[Hiring - 2 roles in Finance, 1 role in Marketing, 1 role in Software, 3 roles in Other]
Logistics
Matrak, an Australian startup, raised $2.9m in Series A funding. They have developed a construction material tracking platform which helps manufacturers, suppliers and builders streamline and de-risk their supply chain through better visibility and collaboration on projects which helps with progress monitoring. More here.
[Hiring - 1 role in Sales]
SWAT Mobility, a Singaporean startup, raised $7.2m in funding. They have developed an AI powered vehicle routing solution which supports delivery optimization systems for the logistics sectors which is responsive to traffic demand. More here.
[Hiring - 4 roles in Sales, 1 role in Marketing, 6 roles in Operations, 1 role in Design, 2 roles in Product, 4 roles in Software, 1 role in Other]
Notes:
Logistics and real time delivery route optimization is critical for construction projects.
For example, when concrete is poured it must be delivered within a threshold time period on site (e.g. 90 mins) otherwise it is wasted. A car crash or traffic can severely impact the delivery schedule.
Additionally large trucks which are used for material delivery may have route constraints with their delivery routes often requiring pre-approval from state road authorities to ensure that waste, dust and noise are minimized.
Optimizing a delivery route within these constraints and being responsive to live traffic demand is incredibly valuable (this solution does not solve this particular use case of route approvals).
Construction Management
Andpad, a Japanese startup, raised $7.8m in funding. They provide a construction management application. More here.
Energy Infrastructure
Ocergy, a Californian startup, raised funding (undisclosed). They design and manufacture floating foundations for wind turbines offering designs which are lighter and modular allowing easier transport and assembly. More here.
[Hiring - 1 role in Sales, 1 role in Finance, 1 role in Software, 1 role in Mechanical, 1 role in Structural Engineering, 1 role in Project Management, 1 role in Other]
Notes:
As mentioned in this issue, Japan and the US announced they will work together to cut floating offshore wind costs with Tokyo contributing 120 billion yen ($784 million) to develop floating wind technology.
Floating wind power installations are typically bigger and costlier than bottom-fixed structures.
Xlinks, a British startup, raised $10.2m in funding. They are building a power cable between the UK and Morocco which could deliver 8% of the UK’s energy demand, enough to keep the lights on in 7m homes (planned total cost ~£24 billion) as well as developing solar and wind sites in Morocco. More here.
Ion Energy, a Thai startup, raised $3m in Series A funding. They provide, install and maintain solar energy solutions for residential users and small-and-medium-sized enterprises (SMEs) at no cost and earn revenue by selling generated electricity at a 20-50% discount to the electrical authority rate. More here.
Building Decarbonization
Nusku, a UK startup, raised £1m in funding. They produce heat pumps which are based on air source technology that is cheaper and quicker to install, taking a few days rather than a week. More here.
[Hiring - 1 role in Mechanical, 1 role in Other]
Insurance
Plover Parametrics, a New York startup, raised over $5m in funding. They provide software enabled commercial insurance for markets which are disrupted by climate change specializing in coverage for wildfire, flood, wind and other perils. More here.
Notes:
Climate change has increased the number of extreme weather events and insurers are refraining from renewing coverage in affected areas due to a rising number of claims.
This solution provides coverage to energy infrastructure and real estate which may be affected by this trend.
Arbol, a New York startup, raised $60m in Series B funding. They provide specialized insurance services which pay out based on specific weather conditions and other measurable factors. More here.
[Hiring - 1 role in Finance, 1 role in Sales, 3 roles in Other]
Notes:
Arbol offers a parametric insurance platform which is a non-traditional form of insurance.
In traditional insurance a premium is paid to cover a loss in case of an incident. Payment is made after a loss assessment with the goal to put the insured back in the position they were prior to the event.
This solution operates on a model which pays out based on the occurrence of predefined triggers such as wind speed or rainfall level. Customers define payout parameters and receive financial support if these are met.
For example a farmer could define that if rainfall over a 3 month period in their location is less than 50mm, they should be paid $100k.
This approach allows for quicker objective settlements allowing for risk due to climate events (or weather) to be transferred.
If applied to construction, parametric insurance could be taken out for weather related program delays ie. if rain days are over 20, pay out $150k.
Monitoring
AiDash, a Californian startup, raised $58.5m in Series C funding. They provide a satellite platform for infrastructure operations and maintenance using AI to spot fire and weather risks to increase infrastructure climate resiliency. More here.
Data Analysis
Danti, an Atlanta startup, raised $5m in Seed funding. They have developed a search engine which simplifies the process of exploring and utilizing Earth observation data allowing natural language searching to gather insights. They offer their services to the infrastructure sector enabling companies with large internal data sets to more easily understand and collate their information. More here.
[Hiring - 1 role in Product, 2 roles in Software]
Other
Potential, a Canadian startup, raised $2m in funding. They develop advanced driver assistance systems for off-road and extreme environments using computer vision and AI to read the path. They are focusing on the mining and defense sectors however there could be applications for the construction sector as well. More here.
Blaize, a Californian startup, raised $106m in funding. They develop edge computing solutions which allows for processing of data at the device delivering real time insights and decision making capability and their solution is sold in the smart city sector for traffic and pedestrian monitoring and parking management. More here.
[Hiring - 1 role in Software, 2 roles in Sales, 5 roles in Other]
Notes:
As discussed here I believe edge computing solutions will gain strong adoption in construction.
The reason is that with Edge computing data is processed closer to where it originates (the sensor) rather than sent to a central cloud for processing as per convention.
The benefit is that in rugged environments (like construction) less data is sent to the cloud reducing latency, energy and bandwidth.
These solutions will find traction in the critical infrastructure market. Given the scale of energy, utilities and telecom networks, sending data to the cloud is expensive and time consuming. Processing and updating models on the ‘edge’ reduces costs while maintaining accuracy, security and privacy.
Policy and Regulatory Changes
The rules will require coal and new gas plants to capture 90% of their emissions by 2032.
This will force the installation of carbon capture technology at these plants.
Notes:
This rule is a major tailwind for carbon capture technology and infrastructure.
There are significant pilots underway throughout the US on the use of this technology and contractors in the industrial sector should explore how they can support the installation and maintenance of these solutions as it represents a revenue opportunity.
European mandating of building energy performance: EPBD recast
This article breaks down the recast EU’s Energy Performance of Buildings Directive (EPBD).
The EPBD has the potential to be transformative but also could bring a much-increased regulatory load for building owners, developers and other stakeholders.
Key standards include:
Zero-emission buildings will be the new standard for all new buildings (both residential and non-residential).
Renovation of the worst performing buildings
A common approach to Energy Performance Certificates across the EU such as providing templates which allow for comparisons.
Biden Administration implements permitting changes to speed infrastructure construction
The White House Council on Environmental Quality (CEQ) is finalizing the Bipartisan Permitting Reform Implementation Rule.
This aims to simplify and modernize the federal environmental review process to speed up permitting in several key sectors.
The updated rules aim to reduce bottlenecks for projects in seven sectors: transmission; renewable energy on federal lands; offshore wind; high-speed internet; semiconductor fabrication; critical mineral mining; and transportation.
To accelerate critical infrastructure, the rule sets clear deadlines and page limits for environmental reviews.
Additionally, it gives agencies new and more flexible ways to implement categorical exclusions to expedite projects that have no significant adverse effects.
Notes:
Tracking permitting reform is a simple way to understand the infrastructure and investment priorities of a nation.
Here it is evident that semiconductors, renewable energy and electric grid (transmission) upgrades are of critical importance.
This information is valuable for contractors seeking new sectors and for startups finding markets to service.
The White House Has a New Master Plan to Stop Worst-Case Scenarios
The Biden administration is updating the US government’s blueprint for protecting the country’s most important infrastructure from hackers, terrorists, and natural disasters.
The memo has 3 purposes:
Formalize 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.
Improve partnerships with the private sector through faster, more comprehensive information sharing.
Lay out the groundwork for minimum cybersecurity requirements for sectors that currently lack them.
This is a shift from the previous approach of using voluntary partnerships which has been viewed as insufficient.
New cyber rules have been applied to aviation, pipeline, railroad, maritime, and medical device industries.
Facing expensive climate threats, NYC’s transit system unveils a resilience plan
New York has announced up to $6b in funding to strengthen the transit system’s ability to withstand future storms.
The plan consists of a climate vulnerability assessment and 10 goals to address the threat of climate impact on the infrastructure.
Notes:
Funding for climate resilience plans for existing infrastructure continues to rise as the cost of climate change related risks and impact rises.
Los Angeles’ decade-old street safety plan must be implemented, voters decide
The passed ballot measure aims to make streets safer for pedestrians, cyclists and transit riders and has a planned cost of $3.1b.
The plan requires the upgrading of more than 2,500 miles of streets and includes 100s of miles of new bus lanes and protected bike lane networks.
The plan was initially approved a decade ago by the Los Angeles City Council but only 5% of improvements have been implemented.
Biden Marks Earth Day By Announcing $7 Billion In Solar Power Grants
Biden announced $7 billion in federal grants for residential solar projects serving 900,000-plus households in low- and middle-income communities.
He also announced plans to expand his New Deal-style American Climate Corps green jobs training program.
U.S. Sen. Baldwin: Over $83 Million to replace lead pipes, expand access to safe drinking water
The funding will be used to help identify and replace hazardous lead pipes across the state, providing access to safe drinking water.
National Infrastructure Projects & Priorities
US
New Vogtle nuclear reactor now online, completing expansion
A new reactor unit has come online at Georgia’s Vogtle nuclear power plant.
The plant will be the single biggest producer of carbon-free energy in the country.
This was one of the first nuclear reactors to be constructed from scratch in the US in more than 30 years.
The project was expected to begin producing power in 2016, but experienced significant delays and unexpected costs, driving the final price tag from $14b to $35b.
Notes:
Nuclear energy is having a comeback.
It is seen as a viable alternative to fossil fuels and a consistent source of energy which integrates into the existing transmission system. This is in contrast to renewables which are decentralized and an intermittent power source.
Multiple states (and nations) have an interest in deploying Small Modular Reactors to provide local energy and this is seen as a viable clean energy source to support the growth and demand for AI Data Centres.
Related:
Mexico
The 100-year-old railway Mexico hopes will rival the Panama Canal
Mexico is reviving a railway line in an attempt to steal container traffic away from the canal.
It will run across Mexico's narrowest point, connecting the Gulf of Mexico and the Pacific Ocean offering an alternative to the Panama Canal as the region suffers increasingly frequent droughts resulting in lower water levels which affect the route.
The $2.8b project seeks to capitalize on multinationals' desire to be closer to the US.
EU
European Commission sells off 23 Brussels buildings
The sale will raise an estimated €900 million.
For the commission, the sale goes towards the aim of occupying fewer and more energy-efficient buildings as its need for office space declines with more staff working from home part of the time.
United Arab Emirates
Joby partners with Abu Dhabi to establish electric air taxi ecosystem
The memorandum of understanding lays the groundwork for Joby to establish and scale air taxi services in Abu Dhabi and beyond and provides the exclusive right to operate air taxi services in Dubai,
The agreement also unlocks the potential for inter-emirate air taxi services, for example between Abu Dhabi and Dubai.
Notes:
The advanced air mobility sector continues to mature. Two infrastructure trends due to this are:
Construction of new vertiport infrastructure (Skyports, who own and operate vertiports recently raised $110m).
Upgrade of existing infrastructure at airports to support electric air taxis (there is currently a debate on what should be the universal charging standard for electric air taxis).
Malaysia
Malaysia plans Southeast Asia's largest integrated circuit design park
Malaysia is offering tax breaks and subsidies to attract global tech companies and investors.
They are aiming to turn Kuala Lumpur into a regional digital hub, with the goal of being among the top 20 countries in the global startup ecosystem index by 2030.
They currently account for 13% of global testing and packaging of semiconductors and want to move from back end assembly to high value design work.
Notes:
Malaysia has been seen as an alternative to China for semiconductor manufacturing.
The government continues to make the business environment friendly to attract talent and infrastructure jobs.
Investment funds
Decarbonization Partners, raised $1.4b to invest in climate tech and energy transition startups. More here.
Notes:
Built environment decarbonization startups often receive funding from climate tech investors.
Acquisitions
Climavision, a San Francisco company providing advanced weather modeling and forecasting, acquired Intersphere, a Colorado company specializing in subseasonal-to-seasonal (S2S) forecasting, predicting weather up to a year in advance. More here.
Notes:
Contractors can use the information to make more strategic decisions about the impacts of weather on their projects and bids.
Stantec, an international engineering consultancy, acquired Hydrock, a British engineering design, energy and sustainable consultancy. More here.
News
Future of ConTech: Are Point Solutions Obsolete Amidst Big Tech Dominance? (Linkedin Post by Ram Ramisetti)
Why do pilots of seemingly great solutions fail (Linkedin Post by Erin Khan)
Green concrete market overview (Extantia)
How to Build a $20 Billion Semiconductor Fab (Construction Physics)
Broken and unreliable EV chargers become a business opportunity for L.A.’s ChargerHelp
EV charger field technicians earn between $20 to $60 an hour. Outside of Tesla’s network, ~20% of chargers are out of order.
To solve this, ChargerHelp has trained 1000 workers and created a program to train the trainers for other companies.
Unsanctioned signs installed along San Francisco's Wiggle bike route
A road safety activist group has installed road signs and safety posts aimed at slowing down cars in a bike area.
It is an example of the community coming together to initiate needed safety solutions when government improvements are not forthcoming.
How AI Could Democratize Technology Access For Small & Medium Businesses
98% of construction firms in the US have less than 100 employees and fall under the scope of an SMB (US census data 2017).
Indiana snares $2B Google data center campus
Google broke ground on a $2 billion data center campus in Fort Wayne, Indiana.
As part of this, Google will bring its Skilled Trades and Readiness Program to the area.
The STAR program offers paid training and networking opportunities to help participants move directly into Google data center construction jobs.
Key Bridge collapse turns neighborhood roads into highway thoroughfares
The Baltimore Key Bridge collapse has increased truck traffic and diesel emissions on local roads.
It has required mitigation work for public health and infrastructure which is not designed for this load.
Bringing Switzerland’s first onsite 3D concrete printed building to life
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.