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
Building Technology | Nov 15, 2019
Tools for measuring embedded carbon in building materials are on their launching pads
The Carbon Leadership Forum and Thornton Tomasetti are taking the lead to drive the industry toward zero-carbon buildings by 2050.
Multifamily Housing | Sep 12, 2019
Meet the masters of offsite construction
Prescient combines 5D software, clever engineering, and advanced robotics to create prefabricated assemblies for apartment buildings and student housing.
Multifamily Housing | Jul 23, 2019
Is prefab in your future?
The most important benefit of offsite construction, when done right, is reliability.
Building Tech | Jun 26, 2019
Modular construction can deliver projects 50% faster
Modular construction can deliver projects 20% to 50% faster than traditional methods and drastically reshape how buildings are delivered, according to a new report from McKinsey & Co.
Building Technology | May 30, 2019
An ESD-incubated intelligent building platform is making two buildings in Chicago smarter
The new company, Cohesion, helps synchronize tenants’ workflows.
M/E/P Systems | May 23, 2019
Process analysis is how one MEP producer is coping with the industry’s labor woes
Southland Industries takes a measured approach to leaning into technology.
Building Technology | Mar 26, 2019
Chain of command: Blockchain for AEC
Blockchain isn’t just about exchanging Bitcoin. It could emerge as the next construction management and lifecycle assessment tool.
Building Technology | Mar 25, 2019
Blockchain: A primer
The simplest explanation of this technology is that blockchain is a digital distributed ledger of transactions or records that exists across multiple participants and computers in a peer-to-peer network.
Industrial Facilities | Mar 10, 2019
The burgeoning Port San Antonio lays out growth plans
Expansions would accommodate cybersecurity, aerospace, and defense tenants, and help commercialize technologies.
Building Technology | Mar 8, 2019
What is your firm's innovation 'hit rate'?
As firms begin to adopt the practices and mindset of Silicon Valley tech and advanced manufacturing, it’s fair to ask: Are all of these innovation projects and initiatives working?
