During the first half of 2018, venture capital firms invested a record $1.05 billion in construction technology startup companies, or nearly 30% more than during the same period in 2017, according to a new report from JLL.
Since 2009, VCs have funded 478 ConTech deals totaling $4.34 billion. “The construction sector is on the verge of major disruption, as tech startups tackle head-on the industry’s biggest pressure points,” says Todd Burns, President of Project and Development Services for JLL.
Indeed, JLL put its money where its mouth is when it brought on two Silicon Valley veterans last year to launch JLL Spark, a business that includes a $100 million global venture fund, and is set up identify and deliver new technology driven real estate service offerings.
Its report calls out three areas where ConTech startups are focusing their efforts:
• Collaborative software, and especially leveraging cloud-based solutions to optimize workflow. Some of the frontrunning startups in this category include Procore Technologies, Flux Factory, PlanGrid, and Clarizen.
• Offsite construction. The building industry can no longer ignore prefabrication and modular solutions at a time when skilled labor is getting harder to hire. Among the new leaders in this category is Katerra—into which Soft Bank has invested $865 million—which is building several new prefab factories, and in recent months has acquired the design firms Michael Green Architecture and Lord Aeck Sargent.
• Big data and artificial intelligence. Predictive data and automation tools are helping construction teams make better-informed decisions to save time and money by extending the work life of equipment, reducing jobsite risk, and automating simple processes. Uptake Technologies is among the startups in this category’s vanguard.
Related Stories
Mass Timber | Aug 30, 2022
Mass timber construction in 2022: From fringe to mainstream
Two Timberlab executives discuss the market for mass timber construction and their company's marketing and manufacturing strategies. Sam Dicke, Business Development Manager, and Erica Spiritos, Director of Preconstruction, Timberlab, speak with BD+C's John Caulfield.
Green | Jul 26, 2022
Climate tech startup BlocPower looks to electrify, decarbonize the nation's buildings
The New York-based climate technology company electrifies and decarbonizes buildings—more than 1,200 of them so far.
Building Technology | Jun 9, 2022
GSA Green Proving Ground program selects six innovative building technologies for evaluation
The U.S. General Services Administration’s (GSA) Green Proving Ground program, in collaboration with the U.S. Department of Energy, has selected six innovative building technologies for evaluation in GSA’s inventory.
Smart Buildings | Jun 1, 2022
Taking full advantage of smart building technology
Drew Deatherage of Crux Solutions discusses where owners and AEC firms could do better at optimizing smart technology in building design and operations.
Sponsored | BD+C University Course | May 10, 2022
Designing smarter places of learning
This course explains the how structural steel building systems are suited to construction of education facilities.
Concrete Technology | Apr 19, 2022
SGH’s Applied Science & Research Center achieves ISO 17025 accreditation for concrete testing procedures
Simpson Gumpertz & Heger’s (SGH) Applied Science & Research Center recently received ISO/IEC17025 accreditation from the American Association for Laboratory Accreditation (A2LA) for several concrete testing methods.
Sponsored | BD+C University Course | Apr 19, 2022
Multi-story building systems and selection criteria
This course outlines the attributes, functions, benefits, limits, and acoustic qualities of composite deck slabs. It reviews the three primary types of composite systems that represent the full range of long-span composite floor systems and examines the criteria for their selection, design, and engineering.
Wood | Apr 13, 2022
Mass timber: Multifamily’s next big building system
Mass timber construction experts offer advice on how to use prefabricated wood systems to help you reach for the heights with your next apartment or condominium project.
AEC Tech | Apr 13, 2022
Morphosis designs EV charging station for automaker Genesis
LA-based design and architecture firm Morphosis has partnered with automotive luxury brand Genesis to bring their signature brand and styling, attention-to-detail, and seamless customer experience to the design of Electric Vehicle Charging (EVC) Stations.
AEC Tech | Apr 13, 2022
A robot automates elevator installation
Schindler—which manufactures and installs elevators, escalators, and moving walkways—has created a robot called R.I.S.E. (robotic installation system for elevators) to help install lifts in high-rise buildings.
