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
| Jul 10, 2013
World's best new skyscrapers [slideshow]
The Bow in Calgary and CCTV Headquarters in Beijing are among the world's best new high-rise projects, according to the Council on Tall Buildings and Urban Habitat.
High-rise Construction | Jul 9, 2013
5 innovations in high-rise building design
KONE's carbon-fiber hoisting technology and the Broad Group's prefab construction process are among the breakthroughs named 2013 Innovation Award winners by the Council on Tall Buildings and Urban Habitat.
Sponsored | | Jun 30, 2013
Get your 'Early Bird' entry in for BD+C 30th Annual Reconstruction Awards
The deadline is for BD+C's 30th Annual Reconstruction Awards is July 19, but if you get me a draft of your entry by July 12 (earlier if possible, please!), we'll read it and give you feedback and suggestions that could help you win. We'll give you enough time to rework your entry in time to meet the deadline. We do this "Early Bird" service to help you put together the best possible entry - one that will answer any questions our distinguished jury members may come up with. However, we must emphasize that the BD+C Reconstruction Awards program is a juried competition, so there are no guarantees you'll win. We're just trying to improve your odds. Building Design+Construction is the only publication in its field to recognize the importance of reconstruction in all its forms - historic preservation, adaptive reuse, renovation, fitouts, and reconstruction with addition. And we've been doing it for 30 years. Incidentally, reconstruction accounts for 30-35% of all revenue for AEC firms, so it's a key component of the US/Canada design and construction industry. Send your draft entry to: rcassidy@sgcmail.com. And good luck!
| Jun 28, 2013
Calculating the ROI of building enclosure commissioning
A researcher at Lawrence Berkeley National Laboratory calls building enclosure commissioning “the single-most cost-effective strategy for reducing energy, costs, and greenhouse gas emissions in buildings today.”
| Jun 28, 2013
A brief history of windows in America
Historic window experts from Hoffmann Architects look back at the origin of windows in the U.S.
| Jun 28, 2013
Building owners cite BIM/VDC as 'most exciting trend' in facilities management, says Mortenson report
A recent survey of more than 60 building owners and facility management professionals by Mortenson Construction shows that BIM/VDC is top of mind among owner professionals.
| Jun 27, 2013
Thermal, solar control designs can impact cooling loads by 200%, heating loads by 30%
Underestimating thermal bridging can greatly undermine a building’s performance contributing to heating load variances of up to 30% and cooling load variances of up to 200%, says the MMM Group.
| Jun 20, 2013
Virtual meetings enhance design of University at Buffalo Medical School
HOK designers in New York, St. Louis and Atlanta are using virtual meetings with their University at Buffalo (UB) client team to improve the design process for UB’s new School of Medicine and Biomedical Sciences on the Buffalo Niagara Medical Campus.
| Jun 14, 2013
Purdue, industry partners test light steel framing for seismic safety
A partnership of leading earthquake engineering researchers from top U.S. and Canadian universities and design professionals from the steel industry have begun the final phase of a three-year project to increase the seismic safety of buildings that use lightweight cold-formed steel for their primary beams and columns.
| Jun 11, 2013
Finnish elevator technology could facilitate supertall building design
KONE Corporation has announced a new elevator technology that could make it possible for supertall buildings to reach new heights by eliminating several problems of existing elevator technology. The firm's new UltraRope hoisting system uses a rope with a carbon-fiber core and high-friction coating, rather than conventional steel rope.
