Last Week in ConTech - 8 April 2024
The next frontier: Construction on the Moon.
In this issue there are:
9 Startup Fundings
10 Regulatory Changes and Grant funding
4 New National Infrastructure Projects & Priorities
1 New investment funds
1 New accelerator
3 Acquisitions
12 News articles
Reading time: 12 mins
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Startup Funding
Computer Vision
Ailytics, a Singaporean startup, raised $2.7m in funding. They provide an AI powered video analytics solution which connects to existing cameras to provide real time insights of unsafe acts, productivity metrics (e.g. stage completion and vehicle entry and exit times) and security breaches for heavy industries such as construction and manufacturing. More here.
[Hiring - 3 roles in Software, 1 role in Marketing]
Notes:
The solution can provide 3D dimensions using a 2D video feed.
This allows for complex use cases such as calculating the danger zone under heavy load and a fixed radius around hazardous equipment.
AI
Archetype, a Californian startup, raised $13m in seed funding. They are building an AI which understands the physical world by ingesting data from multimodal sensors (radars, cameras, accelerometers, temperature etc) allowing anyone to pose open ended questions about the physical environment and take informed action. More here.
Notes:
This solution is referred to as ‘ChatGPT for physical reality.’
An early customer is using their solution to ‘Improve construction safety and reduce waste at massive construction sites’.
Related:
How the A.I. That Drives ChatGPT Will Move Into the Physical World (New York Times)
Logistics
Alrik, a Swedish startup, raised €1m in seed funding. They are building a construction logistics platform which helps distributors manage their fleet and carriers including providing access to a wider carrier network with instant cost and emissions data available. More here.
Notes:
This solution assists with tracking Scope 3 emissions associated with construction projects.
Scope 3 refers to emissions from supplies and supply chains such as organizations supplying goods and services and is usually very difficult for companies to track.
Insurance
Billy, a New York startup, raised an additional $4.5m in funding. They are building a marketplace for insurance for the construction industry and have two revenue models. One is a SaaS platform that collects, verifies and tracks compliance documents such as business licenses and W9 forms for GCs, developers and property owners. The other uses the data from the SaaS platform to operate a marketplace which provides insurance solutions. More here.
[Hiring - 1 role in Sales]
Notes:
A number of construction insurance startups have been raising funding using a similar model (Shepherd raised $12.5m in February) ingesting risk data to offer better insurance terms.
Related:
The construction insurance industry is rapidly maturing with a rise in startup funding in this sector.
If you are building in this sector or have knowledge, I’d love to chat! I am currently doing a deep dive on risk mitigation solutions in construction and want to learn further about how this could relate to the construction insurance industry.
Highly recommend this White Paper by Alpaca VC - it’s a great primer (written in Dec 2022): The Intersection of Construction Tech and FinTech (including InsurTech).
Labor
Protiv, a New York startup, raised $2.4m in pre-seed funding. They are developing an incentive platform for hourly workers in the construction industry which links project budgets to team incentives. More here.
[Hiring - 3 roles in Sales]
Notes:
This round was initially noted in the January 8 issue.
Energy Transition
Lightshift Energy, a Virginia startup, raised $100m in funding. They develop utility-scale energy storage, providing energy storage analytics, application design, finance, and development expertise to deliver projects such as battery storage for utilities and municipalities. More here.
[Hiring - 2 roles in Finance, 7 roles in Other]
Connectivity
Firecell, a French startup, raised €6.6m in seed funding. They help businesses deploy 5G networks and devices to connect and track assets such as vehicles, robots and sensors. More here.
[Hiring - 8 roles in Software, 6 roles in Sales, 1 role in Operations, 1 role in Marketing, 1 role in Other]
Notes:
This solution is designed for demanding industrial environments which require a 5G solution to provide reliable, secure and high performance connectivity. It can cover over 30,000 square meters with less than 5 5G access points.
As warehouses and logistic centers become more autonomous, connectivity is required to ensure operational efficiency and safety.
This has applications for the construction site and enabling ‘Construction 4.0.’
Ensuring network connectivity on site is key for safety and to support the use of autonomous systems and Internet of Things sensors. Even today, many sites can have unreliable connections due to being in a remote or unpredictable environment.
Real Estate
Aeria, an Indian startup, raised $1.8m in pre-seed funding led by Foundamental. They are a tenant experience and asset management platform for commercial real estate offering a comprehensive platform with features such as access management for buildings and parking management. More here.
[Hiring - 3 roles in Software, 2 roles in Sales, 1 role in Product]
Notes:
Aeria’s solution is remarkably comprehensive, offering solutions such as phone enabled access control systems, real time parking systems, visitor management, carpool, micro-mobility and resource bookings (meeting rooms).
While the solution is primarily aimed at developers and asset owners it can provide value for office managers and tenants who can offer an improved and seamless office experience for employees.
Workers would no longer be required to log into multiple systems - one for carpooling, another for meeting room booking and another for desk booking.
This is an example of a trend in the industry where startups are focusing on a platform (full service) vs point solution offering.
Related:
Jim Barksdale, a former CEO of Netscape, famously proclaimed there are “only two ways to make money in business: one is to bundle; the other is unbundle.”
Construction Tech appears to be going through a process of consolidation and bundling where companies are either acquiring or expanding their services to become platforms.
How to Succeed in Business by Bundling – and Unbundling (HBR)
Other
Honey, a UK startup, raised £12.2m in debt funding. They build sustainable homes. More here.
Regulatory Changes and Grant funding
National blueprint for building-sector decarbonization released by Biden administration
The DOE has released a federal blueprint on how to decarbonize the builder sector.
Specific goals include:
Reduce the energy used on-site in buildings 35% by 2035 and 50% by 2050 (compared with 2005).
Reduce greenhouse gas emissions buildings produced on-site 25% by 2035 and 75% by 2050 (compared with 2005).
Reduce embodied emissions from building materials and construction 90% by 2050 (compared with 2005).
Germany Launches Clean Industry Push Worth Up to €4 Billion
The funding is for its steel, cement and heavy industrial sectors to transition to lower carbon technologies and techniques.
It will compensate for additional expenses incurred in using cleaner technologies compared to conventional processes.
The funding is designed to protect domestic manufacturers and industrial producers against international price competition as they explore lower carbon approaches.
€50b has been set aside.
US judge temporarily blocks $649 million clean-energy transmission line
A land swap needed for developers to build a major clean energy transmission line through a Mississippi River wildlife refuge was temporarily blocked by a judge.
Permits had been approved for the transmission line by the U.S. Interior Department and U.S. Army Corps of Engineers.
Notes:
Permitting and siting are major issues in the energy transition.
Despite approvals and project planning, infrastructure deployment is held back by litigation.
Millions in funding coming for homebuilding innovation initiatives, Trudeau says (Canada)
$600 million is to be earmarked in the upcoming budget for a series of new homebuilding innovation efforts aimed at scaling-up the development of modular and prefabricated homes in Canada.
This includes $50m for a new "Homebuilding Technology and Innovation Fund” and $50m towards regional initiatives seeking to modernize building practices through modular housing, mass timber construction, robotics, 3D printing and automation.
Federal real estate optimization proposed in Biden FY25 budget
The proposed budget allocated $425m to shrink the federal portfolio and trim long term costs via a real estate optimization program.
This will facilitate renovations to use space more effectively and offload unneeded federal facilities.
A New York Bill Seeks to Reduce Natural Gas Use. Here’s What to Know.
The NY HEAT (New York Home Energy Affordable Transition) Act seeks to limit a requirement known as the “obligation to serve.”
This is where utilities automatically provide gas to new customers who request it.
Gas companies must provide free hookups to new customers within 100 feet of the pipe system
Phoenix passes worker heat safety ordinance amid rising deaths
The ordinance requires all city contractors and subcontractors to develop heat plans.
Employers must provide cold, clean and free drinking water on worksites; allow workers to take breaks; provide access to shade or air conditioning.
By May 1, 2025, they must provide air conditioning in enclosed cabs.
DOE to invest $22M to improve planning, permitting of renewable energy, storage projects
The funding is intended to smooth the approval process for wind turbines, solar farms and energy storage projects.
America is divided over major efforts to rewrite child labor laws (Washington Post)
Florida’s legislature has passed a law (awaiting governor approval) that would allow teens to work certain jobs in residential construction.
An argument for the law is that construction has one of the largest skilled-work shortages in recent history and that the construction industry needs to identify the next generation.
The bill limits work for 16- and 17-year-olds to home construction projects, adding that teens wouldn’t be able to work on anything higher than six feet.
$20.5B in federal funds for public transit available in FY 2024
The Federal Transit Administration announced that $20.5 billion in federal funding will be available in fiscal year 2024 for public transit.
The funding will help communities:
expand, modernize, maintain, and operate public transportation systems;
upgrade stations, tracks, and maintenance facilities;
plan and design new transit corridors; and
provide access for seniors and riders with disabilities.
National Infrastructure Projects & Priorities
Sinopec Says Massive Green Hydrogen Plant Has Boosted Run Rates
A green hydrogen plant in Xinjiang, China has upped its utilization rate to 50%.
It was at 20% utilization when it launched in 2023.
This is an important sign in the scaling up of green hydrogen as it becomes a more viable and cost effective power alternative.
Related:
The U.S. The Department of Energy is aiming to reduce the cost of clean hydrogen production to $1 per kilogram by 2031.
US approves Orsted's Sunrise Wind offshore wind farm to power New York homes
The Biden Administration gave final approval for a wind farm in New York.
It is expected to provide power to more than 320,000 homes.
Notes:
This is the seventh offshore wind farm approved by the Biden Administration.
The goal is to permit 30 gigawatts of offshore capacity by 2030.
The loan guarantee is for restoration and resumption of service of an 800-MW electric nuclear generating station in Covert Township, Michigan and upgrade it to produce baseload clean power.
Notes:
This is the first recommissioning of a nuclear plant in the US.
The US (as mentioned in this issue) recently approved the Atomic Energy Advancement Act which aims to bolster US nuclear energy production by speeding up environment reviews and reducing application fees.
The DOE has also issued a Coal to Nuclear transition guide and is exploring how energy hungry tech firms might be able to host small nuclear plants on the campuses of their data centers.
Additionally Small modular nuclear reactors (SMR) are a growing trend in the US. As mentioned in this issue Illinois now allows construction of SMR.
NASA assigns Northrop Grumman to develop a railway project on the Moon
NASA’s Artemis project assumes the return of humans to the moon by the end of this decade.
Northrop Grumman has been selected to develop a lunar rail network that will facilitate exploration and scientific research.
Over the next 10 years, the company must develop a railway infrastructure plan that will connect lunar objects and allow the movement of people and resources.
The company’s responsibilities include identifying the necessary technologies and resources, prototyping, and researching robotics concepts to build and operate the system.
Related:
New Investment Funds (and accelerators)
The Oman Investment Authority has launched a $5.2b Future Fund to invest in large scale projects in Oman across manufacturing, green energy and more. More here.
AmpliNxt, an Indian AEC incubator has announced the opening of their new cohort. Applications must be made by April 25th, 2024. More here.
Related:
I recently published an article on their AmpliNxt’s blog called: The future of infrastructure will be built by startups. Not governments.
Acquisitions
Saint-Gobain, a French building materials company, is acquiring Bailey Group of Cos., a Canadian producer of commercial metal framing and building systems for C$880m. More here.
Holcim, Swiss multinational company which manufactures building materials, is acquiring Tensolite, a South American maker of precast and pre-stressed concrete construction systems. More here.
Once For All, a Parisian company which specializes in supply chain compliance and sustainable sourcing solutions for the built environment, acquired Nalanda Global, a Madrid company providing supply chain risk and compliance management software. More here.
News
Job Openings and Labor Turnover Survey News Release
From the US Bureau of Labor Statistics in February there were 441,000 unfilled openings in construction.
Cleantech Construction Map (CEMEX Ventures)
How Gen Z Is Becoming the Toolbelt Generation (WSJ)
Greenlane announces LA to LV charging corridor for commercial trucks
Greenlane is a joint venture made up of heavy trucking giant Daimler Truck North America, energy company NextEra Energy, and investment firm BlackRock.
They plan to build a 280 mile long “EV corridor” for commercial trucks running from Los Angeles to Las Vegas along Interstate 15.
Facilities along the corridor will be placed about 60 to 90 miles apart.
Greenlane plans to establish a nationwide fast-charging and hydrogen fueling network for commercial vehicles.
One Satellite Signal Rules Modern Life. What if Someone Knocks It Out?
Global positioning satellites serve as clocks in the sky and are critical to the world economy.
They are vulnerable and subsequent administrations have sought (Obama, Trump and Biden) to create backups to GPS.
The Biden administration is currently soliciting private companies for solutions.
In China, they are building 100s of timing stations on land and laying 12,000 miles of fiber-optic cables underground as an alternative time system.
Notes:
Global power competition is resulting in increased spending on backup infrastructure.
Related:
White House directs NASA to create time standard for the moon called Coordinated Lunar Time (LTC).
How Dynamic Line Ratings Accelerate Renewable Energy Integration
Dynamic Line Ratings use sensors to determine when temperature and wind conditions can allow lines to carry more electricity.
Dozens of Indian construction workers fly to Israel to replace Palestinian laborers
What makes housing so expensive? (Construction Physics)
€1 Homes in Europe Are Fine, But There’s A Better Option
Using AI Agents to Research Materials for Pre-Construction
Moving Past Environmental Proceduralism
This article explains why today’s environmental regulations are too focused on process relative to results.
“In many of the most notable successes [of the environmental movement], like cleaning up the pesticide DDT or fixing the hole in the ozone layer, what moved the needle were ‘substantive’ standards, which mandated specific outcomes. By contrast, many of the regulatory statutes of the late 60s were ‘procedural’ laws, requiring agencies to follow specific steps before authorizing activities… Today, those procedural laws make it much harder to build the new infrastructure needed to avert climate change and decarbonize. The laws created by the environmental movement now harm the environment.”
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.