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
AEC Innovators | Jun 15, 2023
Rogers-O'Brien Construction pilots wearables to reduce heat-related injuries on jobsites
Rogers-O'Brien Construction (RO) has launched a pilot program utilizing SafeGuard, a safety-as-a-service platform for real-time health and safety risk assessment. Non-invasive wearables connected to SafeGuard continuously monitor personnel to prevent heat exhaustion on jobsites, reducing the risk of related injuries. RO is the first general contractor to pilot this program.
Mass Timber | Jun 13, 2023
Mass timber construction featured in two-story mixed-use art gallery and wine bar in Silicon Valley
The Edes Building, a two-story art gallery and wine bar in the Silicon Valley community of Morgan Hill, will prominently feature mass timber. Cross-laminated timber (CLT) and glulam posts and beams were specified for aesthetics, biophilic properties, and a reduced carbon footprint compared to concrete and steel alternatives.
Engineers | Jun 5, 2023
How to properly assess structural wind damage
Properly assessing wind damage can identify vulnerabilities in a building's design or construction, which could lead to future damage or loss, writes Matt Wagner, SE, Principal and Managing Director with Walter P Moore.
Cladding and Facade Systems | Jun 5, 2023
27 important questions about façade leakage
Walter P Moore’s Darek Brandt discusses the key questions building owners and property managers should be asking to determine the health of their building's façade.
Office Buildings | May 15, 2023
Sixteen-story office tower will use 40% less energy than an average NYC office building
This month marks the completion of a new 16-story office tower that is being promoted as New York City’s most sustainable office structure. That boast is backed by an innovative HVAC system that features geothermal wells, dedicated outdoor air system (DOAS) units, radiant heating and cooling, and a sophisticated control system to ensure that the elements work optimally together.
AEC Tech Innovation | May 12, 2023
Meet Diverge, Hensel Phelps' new ConTech investment company
Thai Nguyen, Director of Innovation with Hensel Phelps, discusses the construction giant's new startup investment platform, Diverge.
3D Printing | May 12, 2023
World’s first 3D-printed medical center completed
3D construction printing reached new heights this week as the world’s first 3D-printed medical center was completed in Thailand.
AEC Tech | May 9, 2023
4 insights on building product manufacturers getting ‘smart’
Overall, half of building product manufacturers plan to invest in one or more areas of technology in the next three years.
University Buildings | May 5, 2023
New health sciences center at St. John’s University will feature geothermal heating, cooling
The recently topped off St. Vincent Health Sciences Center at St. John’s University in New York City will feature impressive green features including geothermal heating and cooling along with an array of rooftop solar panels. The geothermal field consists of 66 wells drilled 499 feet below ground which will help to heat and cool the 70,000 sf structure.
Building Technology | May 4, 2023
3D printing for construction advances in Germany
The largest 3D-printed building in Europe will have a much lower carbon footprint.
