Last Week in ConTech - 7 October 2024
Proposed $30b a year US social housing authority & Fortescue metals buys $4b in electric machinery
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:
11 Startup Fundings
9 Policy and Regulatory Changes
1 US election policy updates
7 New National Infrastructure Projects & Priorities
0 New investment fund
0 Acquisition
6 News articles
11 open jobs - view here
Reading time: 12 mins
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Startup Funding
Smart Buildings
Neeve, a San Francisco startup, raised $15m in funding. They are developing a unified platform for smart buildings which cyber secure your building, helps to deploy smart building applications and unlocks building data by creating an integrated model to contextualize the data such as energy consumption and use intensity. More here.
Notes:
Neeve was formerly View Inc.’s Smart Building Cloud.
It is now operating as a separate company from View Smart Windows.
Supply Chain
Latii, a New York startup, raised $6.7m 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]
Alternative site power systems
GeoPura, a UK startup, raised £22m in debt funding. They are a zero emission power provider that generates hydrogen, stores and transports it to customers helping them replace diesel generators with a clean alternative. More here.
[View open jobs - 1 role in Project Management, 4 roles in Sales]
Notes:
GeoPura is targeting the construction industry as an initial customer base.
During the early phases of construction projects, grid access is often limited or unavailable, requiring electricity generators.
There is growing demand for clean energy due to the rise of low or zero-emission zones.
This increasing demand positions GeoPura’s Hydrogen Power Unit (HPU) as a cleaner alternative to traditional diesel generators.
A challenge with hydrogen adoption is the lack of an existing supply chain, unlike diesel, which is easily available.
To address this, GeoPura generates, stores, and transports hydrogen directly to the generators they supply.
Water
FIDO AI, a UK startup, raised Series B funding (undisclosed) led by CRH Ventures. They have developed an asset maintenance solution for utilities which uses AI to identify leaks in water pipeline networks in real time and ranks them by prioritization. More here.
[View open jobs - 1 role in Software, 1 role in Sales]
Notes:
This solution is valuable as it can assist with pavement / structure asset maintenance.
For example, we often notice pavement distress such as stepping displacement in concrete pavements (height difference between adjacent slabs).
To determine the cause we may complete a CCTV of pipe infrastructure to identify leaks (water leaking into reactive soil creates issues e.g swelling of soil).
Being able to identify and proactively rectify before damage occurs to the asset can be valuable.
Pluvion, a German startup, raised €1m in Pre-seed funding. They help wastewater utilities detect and forecast extraneous water infiltration in sewer networks such as groundwater, rainwater or surface runoff. More here.
Notes:
Extraneous water is water that has entered the sewer system but should not be there such as ground water infiltrating through leakages, illegally discharged drainage water, or rainwater flowing into a sewage canal through manhole covers.
HVAC
Airship, a Washington startup, raised $4m in Pre-seed funding. They are developing a point of sale software for HVAC companies which helps technicians create sales proposals and incorporate incentives such as government rebates. More here.
Notes:
The thesis here is that the software helps HVAC contractors to extract more value from their existing clients / calls.
It does so by providing relevant information to close sales.
An example is providing a technician with information on incentive programs or rebates their customers may be eligible for.
Due to the Inflation Reduction Act, the amount of grant funding and rebate opportunities have been rising but companies may not have the resources to identify them.
Providing this information at the point of sale will help companies to close more deals and grow revenue.
Inspections
Voliro, a Swiss startup, raised $12m in Series A funding. They develop drones to be used for industrial non destructive inspections and maintenance tasks in difficult to reach or hazardous to human areas with traction in the infrastructure (e.g steel bridges, water towers), cement and aggregate industries. More here.
[View open jobs - 1 role in Software]
Risk
Enlaye, a Boston startup, raised $1.7m in Pre-seed funding. They develop an AI native risk lifecycle management platform which aims to help all contractors, owners and developers to identify, assess and compare risks at all stages of the project lifecycle. More here.
Notes:
For developers, the platform aims to identify each project's construction risk profile, control risk exposure and reduce contracting costs.
For public / government owners, it is to help coordinate the assembly and drafting of bid packages, helping to catch RFP errors or overlaps and compare bids.
Autonomous Systems
3Laws Robotics, a Californian startup, raised $4.1m in Seed funding. They develop dynamic safety solutions for autonomous / robotic systems such as providing dynamic safety guide rails including collision avoidance and geofencing. More here.
[View open jobs - 1 role in Software]
Notes:
A challenge with using autonomous systems in construction is that it is a dynamic and uncontrolled environment (less fixed cases vs manufacturing / warehousing).
Asset Management and Urban Planning
City Detect, an Alabama startup, raised $2m in Seed funding. They are developing an AI powered platform which helps cities identify, manage, and mitigate urban decay and blight with computer vision. More here.
Notes:
The solution works by using existing fleet vehicles to collect images.
The solution then can detect, map and analyze urban elements identifying code violations, illegal dumping, graffiti and collect data analytics for urban planning.
Charging Infrastructure
Pluq, an Amsterdam startup, raised €50m in debt funding. They are developing a destination EV charging network. More here.
[View open jobs - 1 role in Sales]
Notes:
Pluq’s thesis is that electric charging will occur at locations where people like or need to be (vs. gas station charging philosophy).
This involves providing slower, cost-effective charging solutions at locations where users spend extended time such as hotels, offices and hospitals (fast charging is more expensive for users).
Policy and Regulatory Changes
AOC Proposes $30 Billion Social Housing Authority
The bill proposes a public alternative to private developers to meet the immense need for US affordable housing.
Under the legislation, a new social housing authority would function as both a bank and developer for resident-owned coops, community land trusts, public housing and other market alternatives.
It would enable the federal government to acquire real estate for permanently affordable housing, develop new subsidized homes and apartments, and finance deeply affordable projects for rent or purchase.
Notes:
The bill is viewed as a ‘long shot’ given the cost - it calls for $30 billion in annual appropriations, plus a parallel loan fund backed by the US Department of the Treasury.
Anti-dust campaign: Delhi govt releases guidelines for construction sites
Delhi environment minister Gopal Rai released a 14-point guideline for construction sites to follow in order to check dust pollution.
The guidelines were released as part of the month-long anti-dust campaign, which will start on October 7.
Some of the directions that construction sites have been given include:
the installation of a wall of tin sheets around the site to mitigate the spreading of dust;
anti-smog guns around sites that are larger than 5,000 sq m;
providing all workers with proper dust masks;
having health kits and medical facilities on sites; among others.
To tackle vehicular dust pollution, 85 mechanical road sweeping machines, 500 water sprinklers, and 200 mobile anti-smog guns have been deployed.
US seeks new pedestrian safety rules aimed at increasingly massive SUVs and pickup trucks
The National Highway Traffic Safety Administration said Monday that for the first time it’s proposing a new rule setting testing and performance requirements to minimize the risk of pedestrian head injuries.
Notes:
This could have implications on the size and weight of vehicles.
This in turn could influence the design of roadways and safety barriers.
New York City bill would mandate solar panels on public buildings
The legislation (approved this week) would require the Department of Citywide Administrative Services to install 100 megawatts of solar on the roofs of city-owned buildings by the end of 2025.
The proposal calls for a total installation of 150 MW by 2030 on city-owned buildings and other properties, like parking lots and industrial areas.
Affordable multifamily housing owners would get decarbonization help in NYC proposal
New York plans to create a fund that helps rent-regulated multifamily housing owners and low-income co-ops comply with the their building decarbonization law.
The fund would receive proceeds from the sale of offset certificates, which building owners can purchase to help them meet the requirements of Local Law 97.
Transmission Facilitation Program Selections
The U.S. Department of Energy’s Grid Deployment Office (GDO) announced an investment of $1.5 billion in four transmission projects supporting nearly 1,000 miles of lines.
Seven concrete decarbonisation projects win Innovate UK’s £3.2m funding
This funding forms part of the agency's broader effort to foster sustainable practices and reduce carbon emissions within the construction sector.
The projects will also collaborate with the Concrete Commitment Cohort, contributing to the development of an advance market commitment (AMC) for concrete.
AMCs are designed to incentivise the production of innovative products such as low-carbon concrete by guaranteeing a market once they are successfully developed.
Related:
Colorado puts new focus on fighting wage theft in construction industry
Colorado has entered a new era of wage-theft enforcement — combining public and private efforts to tackle systematic issues in the construction industry.
In 2023, nearly 30% of the wage-theft money recovered by the Denver Auditor’s Office came from the construction industry.
Companies are misclassifying workers as independent contractors to save costs.
Unlike employees, independent contractors aren’t entitled to overtime pay, paid sick leave, health benefits, vacation or workers’ compensation. Companies also don’t need to pay payroll taxes.
Part of the funding will be used for infrastructure planning and design to support the development of networks that can share CO2 transport and storage infrastructure.
US election policy updates
Trump vs. Harris on manufacturing: A tale of 2 speeches
Trump vowed to spur American manufacturing, promising to cut the corporate tax rate for domestic manufacturers from 21% to 15%, as well as lessen regulatory burdens for companies looking to build new factories and extract critical minerals such as lithium.
Harris also promised to remove regulatory barriers that slow down factory construction, including tackling permitting reform.
Harris mentioned expanding clean energy production in areas such as batteries, nuclear energy and geothermal energy.
National Infrastructure Projects & Priorities
US
DoD Breaks Ground on Project Pele: A Mobile Nuclear Reactor for Energy Resiliency
The Department of Defense (DoD) has broken ground at Idaho National Laboratory (INL) on the Project Pele transportable nuclear reactor.
The prototype reactor facility is designed to be transported within four 20-foot shipping containers.
Notes:
Transportable nuclear power plants could transform how we develop net zero construction sites.
Pathways to Commercial Liftoff: Advanced Nuclear
The US Department of Energy released a new report that explains how and why U.S. nuclear capacity has the potential to triple over the next 25 years.
The existing fleet of 94 nuclear reactors at 54 sites provide ~20% of US electricity generation and almost half of domestic carbon-free electricity.
The report explains the process of how to build a nuclear power plant including indicative timelines for the construction phase broken down by civil works, bulk mechanical / electrical and major equipment installation.
Related:
OpenAI Pitched White House on Unprecedented Data Center Buildout
OpenAI pitched the White House on a plan to build multiple 5-gigawatt data centers in various US states outlining the economic and national security benefits.
5 gigawatts is ~five nuclear reactors, or enough to power almost 3 million homes.
Huge New Jersey offshore wind project approved for construction
The developer plans to install a total of about 200 wind turbines in federally owned waters.
The project’s two phases plan to deliver a total of 2.8 gigawatts of electricity to the grid.
India
India Backs Small Nuclear Reactors to Power Heavy Industry
India plans to build 40-50 small nuclear reactors to power hard-to-decarbonize industries like steel and cement over the next decade.
The program came about following requests from domestic heavy industries looking for ways to reduce their climate impact.
Industry players have been expressing a lot of interest in having a captive nuclear power plant for their use.
Related
International banks express support for nuclear expansion
A group of 14 global financial institutions have expressed their support for the call to action to triple nuclear energy capacity by 2050.
The Tamil Nadu Model of Doing Business
The China Plus One trend is driving investments to India, especially the state Tamil Nadu.
Tamil Nadu netted close to 1 trillion rupees (approx. $12 billion) in commitments this year.
Vietnam’s VinFast committed to a $500-million investment to build electric vehicles, Tata Motors broke ground on a billion-dollar facility to produce Jaguar-Land Rover cars, Ford is restarting its factory in Chennai to make cars.
Additionally, Apple has manufacturing facilities in Tamil Nadu with Google planning to construct smartphone production facilities.
Canada
Eight OPG hydro stations to undergo refurbishments in eastern Ontario
Ontario Power Generation (OPG) announced it is planning to invest $1 billion over the next 20 years to refurbish 45 generating units at eight hydro stations in eastern Ontario.
The investment will secure 1,617 megawatts (MW) of generating capacity – enough to power about 1.6 million homes.
News
The Associated Builders and Contractors has released its fourth annual construction technology report, focusing on the impacts of artificial intelligence in the construction industry.
Forrest has set a target of reaching “real zero” terrestrial emissions for the Pilbara iron ore operations of Fortescue Metals, and wants to achieve that by 2030.
The deal includes the purchase of 360 autonomous battery electric haul trucks, 55 electric excavators, and 60 new battery electric dozers.
Data center spending skyrockets as cloud building rush accelerates
Capital expenditures on cloud infrastructure grew 38% year over year during the first six months of 2024.
As the AI building boom continues, spending on infrastructure is expected to surpass $400 billion this year.
Cuby: The House Factory Factory (Not Boring)
India's infrastructure output contracts for the first time in more than 3 years
How Germany outfitted half a million balconies with solar panels
The country’s residents installed 200MW of balcony solar during the first half of 2024.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.