Thesis and reflections of a venture capital (VC) investor in AEC technology. What fascinated me last week. Always in 10 minutes.
I invest in real-world technology in: Architecture, Engineering, Construction, Supply Chains, and Blue-collar workforce and robotics. No prop-tech here. Just AEC-VC.
📻 Siste episoder av AEC VC
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026 | Construction Tech Funding Hits $1 Billion in Q1 | Asia-Pacific Leads Market Share | BuildOps Reaches Unicorn Status | Robotics Cheat Sheet Unveiled (00:02:32)
About This EpisodePatric shares the impressive Q1 funding numbers for architecture, engineering, and construction technology, with the sector securing $1 billion in venture capital. The episode highlights shifting global market dynamics with Asia-Pacific and Europe showing stronger construction tech market share than North America, and celebrates significant funding rounds for several portfolio companies.In This EpisodeRecord-breaking construction tech investment analysis with $1 billion in Q1 funding, putting the sector on track for its third-highest annual total everSurprising global market shift as Asia-Pacific and Europe demonstrate stronger construction tech investment ratios than North America, suggesting future trends may emerge from eastern markets firstInside look at major funding successes: BuildOps achieving unicorn status at $1B+ valuation, InfraMarket securing $120M, Flex raising $225M combined equity and debt, and Metalbook closing $12.5M from Asian investorsExclusive access to Patric's proprietary robotics evaluation framework being released as a daily series to help founders navigate the complex construction robotics landscapeTimestamps(00:00) - Introduction(00:15) - Q1 funding numbers for construction tech(00:40) - Geographic market share insights: Asia-Pacific and Europe leading(01:15) - Portfolio company success stories and funding rounds(02:00) - Resources shared: funding data, investor relationships, and robotics cheat sheet(02:30) - Conclusion and wrap-upResources or Companies MentionedBuildOps: https://buildops.com/about/InfraMarket: https://infra.market/Metalbook: https://www.metalbook.co.in/Connect With UsSpotify:https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lTYouTube:https://www.youtube.com/@foundamentalvcApple:https://podcasts.apple.com/de/podcast/aec-vc/id1740915855Foundamental:https://www.foundamental.com/Subscribe to the The Daily Blueprint:https://short.foundamentals.io/s/the-daily-blueprintSubscribe to the AEC_VC Newsletter:https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/Patric Hellermann:https://www.linkedin.com/in/aecvc/More articles from AEC_VC:https://aecvc.com/#ConstructionTech #MarketplaceStrategy #DataInfrastructure
025 | Compounding Optionality in ConTech | B2B vs B2C Marketplace Misconceptions | Leapfrogging Software Adoption | Strategic Data Infrastructure for AI Readiness (00:06:44)
About This EpisodePatric Hellermann explores three critical concepts shaping the construction tech landscape: building businesses with compounding optionality instead of rigid long-term visions, the fundamental differences between B2C and B2B marketplaces in construction, and the opportunity for European contractors to leapfrog legacy software challenges through strategic data infrastructure implementation.In This EpisodePatric explains his formula for ConTech success: building real businesses that deliver immediate value while uncovering compounding customer optionality, versus starting with rigid 10-year visions that crumble under their own assumptions.A deep dive into why traditional B2C marketplace strategies fail in construction B2B settings, where high-value transactions, non-standardized orders, and supplier utilization concerns create fundamentally different dynamics.The surprising advantage European contractors have with their lower software adoption rates (50-100 applications) compared to US counterparts (500-1000 applications), creating an opportunity to leapfrog fragmented approaches.How focused data infrastructure investment represents the strategic path forward for construction companies seeking AI-readiness, offering a competitive advantage over those burdened with disconnected point solutions.Timestamps(00:00) - Introduction(00:27) - Compounding optionality for ConTech founders(02:14) - B2C vs B2B marketplace dynamics in construction(04:39) - Leapfrogging software adoption opportunities in Europe(06:27) - Conclusion and wrap-upResources or Companies MentionedLinkedIn Blog Post: https://www.linkedin.com/posts/aecvc_construction-vc-venture-activity-7317920573659992066-rE-2B2B // B2C : https://www.linkedin.com/posts/aecvc_b2bmarketplaces-constructiontech-venturecapital-activity-7317547199104450560-FE_-Practical Nerds Episode 066: https://open.spotify.com/episode/678Co8VbJ8IMyf24j1BpXy?si=YIX2sVcHSfm1ZYl--6nm6gLeapfrogging: https://www.foundamental.com/perspectives/how-technology-leapfrogging-creates-unexpected-market-opportunitiesConnect With UsSpotify:https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lTYouTube:https://www.youtube.com/@foundamentalvcApple:https://podcasts.apple.com/de/podcast/aec-vc/id1740915855Foundamental:https://www.foundamental.com/Subscribe to the The Daily Blueprint:https://short.foundamentals.io/s/the-daily-blueprintSubscribe to the AEC_VC Newsletter:https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/Patric Hellermann:https://www.linkedin.com/in/aecvc/More articles from AEC_VC:https://aecvc.com/#ConstructionTech #MarketplaceStrategy #DataInfrastructureTimestamps
024 | The Future of European Capital | AI in Construction Design | Founder Selection Criteria | Finding Generational Companies in AEC (00:09:28)
About This Episode In this episode, Patric discusses three key insights from his recent week: a major shift in capital allocation towards Europe, a compelling metaphor for understanding AI in construction tech, and his evolving criteria for identifying exceptional founders based on years of experience in the AECS industry.In This EpisodeTrillions of institutional investment capital moving into Europe signaling a potential new era of liquidity and dynamism for European startups and infrastructure. The revolutionary "water and bathtub" metaphor explaining why AI needs proper containment vessels like data infrastructure and authoring tools to create value in construction technology. How "onion founders" with layer upon layer of granular industry insights create more successful companies than those with superficial understanding. Why the best founders maintain the ability to "ride the elevator" between high-level vision and ground-floor operations, especially critical after Series B funding.Timestamps(00:00) - Introduction (00:42) - Overview of three main topics (01:20) - European capital allocation trends and potential impact (02:15) - The water and bathtub metaphor for AI in construction tech (04:35) - Why data infrastructure and authoring tools are critical with AI (06:56) - How founder selection criteria has evolved (09:11) - Conclusion and wrap-upResources or Companies MentionedPitchbookRayonStanislas Chaillou's metaphorWhatsapp Group with ConTech FoundersConnect With UsSpotifyYouTube AppleFoundamentalSubscribe to the The Daily Blueprint Subscribe to the AEC_VC NewsletterPatric HellermannWeb#ConstructionTech #AIinDesign #VentureCapital
023 | Behind the Scenes of Construction Tech Investment | Timeless Substance vs. Trends | The Polar (00:07:47)
About This Episode
Patric shares three key insights that shaped his thinking last week in the construction tech investment space. He explores the importance of timeless substance over short-lived trends, the strategic advantages of being a "polar bear" investor versus following the herd, and presents a surprising perspective on what successful construction robotics companies might actually look like.
In This Episode
The critical difference between time-bound trends and timeless substance in construction tech Why the "polar bear mentality" creates strategic advantages for both investors and founders How successful construction robotics companies may focus on modular platform adoption rather than full automation The potential for construction tech winners to emerge from unexpected places in the ecosystem
Timestamps
(00:00) - Introduction
(00:30) - Three key topics of discussion
(01:15) - Timeless substance in construction tech
(02:16) - The polar bear mentality for investors and founders
(04:39) - Why construction robotics winners might look different than expected
(06:57) - Conclusion and invitation for connections
Resources or Companies Mentioned
InfraMarket: https://infra.market/
Crunchbase: https://www.crunchbase.com/
Timeless Substance
https://www.linkedin.com/posts/aecvc_aec-startup-construction-activity-7310636823045652480-OivA?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGps
Crunchbase Article:
https://news.crunchbase.com/venture/early-stage-investing-types-herd-solo-hellermann-foundamental/
Rethink Robotics
https://www.linkedin.com/posts/aecvc_what-happens-when-a-hidden-generation-of-activity-7308840177819373568-p7aW?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGps
Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter:
https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#ConstructionTech #InvestmentStrategy #ConstructionRobotics
022 | AI Governance in Construction | Navigating the PropTech vs ConTech Debate | Balancing Storytelling and Substance in Startup Growth (00:07:02)
About This EpisodePatric shares three key insights from his week in the construction tech space: a collaborative article on AI's impact in construction featuring insights from industry leaders, his perspective on the fundamental differences between PropTech and ConTech, and reflections from a conversation with an exited construction tech founder about the balance between storytelling and substantive business building.In This EpisodeInsights from industry leaders at Heidelberg Materials, Ferrovial, and Goldback on implementing AI governance frameworks that require CIO and CFO approval for new technology adoptionDeep dive into why ConTech and PropTech must remain distinct categories due to construction's project-based risk profile versus real estate's operations-driven optimization modelsHow pre-construction and bidding estimation workflows represent the most promising entry points for AI implementation in the construction industryAnalysis of an exited founder's dilemma on whether building substantive products or crafting compelling narratives yields better long-term outcomes in construction techTimestamps(00:00) - Introduction(00:26) - Overview of the three main topics(01:03) - AI in construction: insights from industry leaders(02:25) - PropTech vs ConTech debate(03:46) - Conversation with exited construction tech founder on storytelling vs substance(04:52) - Conclusion and wrap-upResources or Companies MentionedHeidelberg Materials: https://www.heidelbergmaterials.com/enFerrovial:https://www.ferrovial.com/Goldbeck Technologies: https://www.goldbeck.de/en/NTT: https://www.global.ntt/Deep Dive On AI's Transformation Of Construction: https://www.linkedin.com/posts/aecvc_constructiontech-aiinconstruction-digitaltransformation-activity-7304893824680554496-aZfK?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsHow is ConTech different from PropTech?: https://www.linkedin.com/posts/aecvc_construction-aec-contech-activity-7305256233916116994-c0Sl?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsRole of Storytelling & Role of Substance:https://www.linkedin.com/posts/aecvc_constructiontech-founders-vc-activity-7305641229910720512-K21Z?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsConnect With UsSpotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lTApple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855Foundamental: https://www.foundamental.com/Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/Patric Hellermann: https://www.linkedin.com/in/aecvc/Web: https://aecvc.com/#AIinConstruction #ConTechStartups #FounderJourney
021 | Cloud Manufacturing in Construction | The Coca-Cola Blueprint | 7 Key Competitive Advantages for AEC Tech Startups | Focus vs. Diffuse Specialists | Tailoring Software for Construction Users (00:05:08)
About This EpisodeIn this episode, Patric shares three valuable insights from his recent work in the construction tech sphere. He explores how cloud manufacturing in construction can learn from Coca-Cola's asset-light model, breaks down the top competitive advantages for construction tech startups, and analyzes the distinct user types in construction companies that software providers must address differently.In This EpisodeHow successful construction tech companies are adopting Coca-Cola's asset-light model to maintain brand control while outsourcing manufacturing and logisticsWhy structural cost advantages through technology enable construction tech startups to deliver solutions 5-10% cheaper than incumbent optionsHow the construction industry presents unique opportunities for developing proprietary distribution channels that blend digital efficiency with crucial human touchpointsThe fundamental differences between "Focus Specialists" who spend 80% of their time on repetitive workflows versus "Diffuse Specialists" who manage multiple varied workflows, and what this means for construction software developmentTimestamps(00:00) - Introduction(00:25) - Cloud manufacturing in construction and the Coca-Cola analogy(01:39) - Top competitive advantages for construction tech startups(03:15) - The two job types in construction companies: Focus vs. Diffuse Specialists(04:46) - Conclusion and wrap-upResources or Companies MentionedInfraMarket: https://infra.market/Metalbook: https://www.metalbook.co.in/Red Bull: https://www.redbull.com/McDonald's: https://www.mcdonalds.com/Cloud Manufacturing: https://www.linkedin.com/posts/aecvc_cloudmanufacturing-constructiontech-buildingmaterials-activity-7301188364857200640-3THO?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGps 7 Competitive Advantages for AEC: https://www.linkedin.com/posts/aecvc_my-favorite-competitive-advantages-in-aec-activity-7300832850352693249-Bi_i?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsTwo different job types in construction companies: https://www.linkedin.com/posts/aecvc_aec-specialist-jobs-and-implications-for-activity-7300171721817411584-6_01?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsConnect With UsSpotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lTApple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855Foundamental: https://www.foundamental.com/Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/Patric Hellermann: https://www.linkedin.com/in/aecvc/Web: https://aecvc.com/#CloudManufacturing #ConstructionTech #StartupStrategy
020 | Maximizing Strategic Advantage in Construction Tech | Theta Decay Principles for Startups | Germany's Infrastructure Investment Boom | AEC Tech Internet Index Updates (00:05:07)
About This EpisodePatric shares insights on how construction tech startups can protect their competitive advantage by applying options trading principles, specifically Theta Decay. He explores Germany's potential infrastructure investment boom following elections and highlights key findings from the latest AEC Tech Internet Index.In This EpisodeHow Theta Decay from options trading creates a framework for startups to protect their competitive intelligence and maximize their unfair advantages in construction techWhy construction tech's quirky, nuanced market makes proprietary insights particularly valuable compared to more "Googleable" industriesAnalysis of Germany's cross-partisan support for infrastructure investment and how the post-election climate could trigger a new economic cycleDeep dive into February's AEC Tech Internet Index revealing breakout performance in reality capture space and growth in outcome-as-a-service startupsTimestamps(00:00) - Introduction(00:20) - Theta Decay principles applied to construction tech startups(02:20) - Germany's potential infrastructure investment boom(04:00) - February AEC Tech Internet Index highlights(04:46) - Conclusion and wrap-upResources or Companies MentionedOpinion on Theta Decay: https://www.linkedin.com/posts/aecvc_aistrategy-categorycreation-constructiontech-activity-7297289202256302080-4yOl?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsTake on German Governmental Election & Kich-Off of possible new infrastructure: https://www.linkedin.com/posts/aecvc_construction-infrastructure-germany-activity-7297999819195711488-cD03?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsTech Internet Index: https://www.linkedin.com/posts/aecvc_aec-tech-internet-index-february-2025-editionpdf-activity-7297670829440417792-MUjw?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsConnect With UsSpotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lTApple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855Foundamental: https://www.foundamental.com/Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/Patric Hellermann: https://www.linkedin.com/in/aecvc/Web: https://aecvc.com/#ConstructionTech #InfrastructureInvestment #StartupStrategy
019 | Scaling VC Knowledge in AEC Tech | Software Fatigue Warning Signs | Working Capital ROI Formula | Strategic Co-Investor Selection (00:02:57)
About This Episode In this focused discussion, Patric Hellermann shares critical insights on emerging challenges in construction tech adoption and introduces Foundamental's strategic approach to evaluating AEC tech startups. The episode offers valuable perspectives on software implementation trends and working capital optimization in construction technology.In This Episode An eye-opening discussion about software fatigue in construction, highlighted by conversations with executives at major global contractors who are considering a hiatus on new software purchases - a potential emerging trend that could reshape technology adoption across the AEC industryA comprehensive breakdown of Foundamental's internal formula for evaluating working capital ROI in AEC tech startups, with specific emphasis on how different business models (SaaS, marketplace, OaaS, FinTech) require distinct approaches to working capital managementA strategic analysis of how working capital can be leveraged to achieve higher margins and accelerate sales cycles, including real-world benchmarking metrics and implementation strategies for construction tech companiesAn examination of how working capital requirements vary across different business models, with particular focus on why SaaS companies typically require minimal working capital while marketplace and FinTech platforms can use it as a strategic advantage for growthTimestamps (00:00) - Introduction (00:01) - Software fatigue in construction industry (01:15) - Working capital ROI formula (02:05) - Benchmarking and implementation strategies (02:15) - Conclusion and wrap-up Connect With Us Referenced Practical Nerds Episode: https://open.spotify.com/episode/478xqYJSprlHmxCK4DsIU1?si=b64f4e80751943b3Software Fatigue in Construction: https://www.linkedin.com/posts/aecvc_constructiontech-digitaltransformation-innovation-activity-7295814281776779264-DsLW?utm_source=share&utm_medium=member_desktop&rcm=ACoAAEwSjLMBzJTwB83CKSqlGKqUSCjivxKjGpsSpotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855 Foundamental: https://www.foundamental.com/ Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/ Patric Hellermann: https://www.linkedin.com/in/aecvc/ Web: https://aecvc.com/ #ConstructionTech #WorkingCapital #SoftwareAdoption
018 | Construction Tech's Perfect Storm | 96,000 New Dwellings Per Day | AI vs Traditional Software Value Creation | Hidden Opportunities in Category Creation (00:04:17)
About This Episode
In this insightful episode, Patric Hellermann explores three critical developments shaping the construction technology landscape in 2025. He delves into the massive demand-supply gap in construction, analyzes the evolving role of software and AI companies in value creation, and discusses the strategic framework for identifying non-obvious market opportunities.
In This Episode
Deep dive into construction's unprecedented growth trajectory, revealing the need to build one New York City equivalent monthly and construct 75% of 2050's infrastructure within the next decade
Comprehensive analysis of the growing labor crisis in construction, with 2.5 million workers missing in Europe, major retirement waves in the US, and 25% of UK workers retiring by 2030
Exploration of the shifting dynamics in construction tech unicorns, where only 25% are pure software companies, and how AI's emergence is reshaping this distribution in 2025
Strategic discussion of the "Hidden in Spite of Obvious" framework for identifying truly innovative opportunities in construction tech, moving beyond overcrowded AI spaces to find category-creating potential
Timestamps
(00:00) - Introduction
(00:43) - Construction demand and infrastructure needs
(01:20) - Labor shortage crisis in construction
(01:52) - Software and AI value creation analysis
(03:15) - Hidden in spite of obvious framework discussion
(04:00) - Conclusion and wrap-up
Resources or Companies Mentioned
Construction Business Review: https://www.linkedin.com/posts/aecvc_constructiontech-aecinnovation-aec-activity-7290054400721473538-kUQN?utm_source=social_share_send&utm_medium=member_desktop_web
Reflection of December 2022 Analysis:
https://www.linkedin.com/posts/aecvc_contech-construction-aec-activity-7291088352798203904-Dawu?utm_source=social_share_send&utm_medium=member_desktop_web
DeepSeek Debate: https://www.linkedin.com/posts/aecvc_ai-contech-founders-activity-7290381130615148544-z5YF?utm_source=social_share_send&utm_medium=member_desktop_web
InfraMarket: https://infra.market/
DeepSeek: https://www.deepseek.com/
Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT
Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#ConstructionTech #AIinConstruction #CategoryCreation
017 | Strategic Startup Communications and Foundamental's 2024 Success Story (00:03:00)
About This Episode
In this insightful episode, Patric shares three key observations from his experience as a construction tech venture capitalist. He discusses strategic considerations for startup announcements, the importance of non-linear founder experiences in construction tech, and provides a remarkable overview of Foundamental's performance in 2024.
In This Episode
Strategic timing and purpose of startup announcements in construction tech, emphasizing the importance of avoiding unnecessary exposure to competition during early funding stages.
The concept of non-linear founder experiences and their compound effect on building successful construction tech companies.
A comprehensive review of Foundamental's 2024 performance, highlighting $700M raised by portfolio companies and a 90% follow-on investment rate.
InfraMarket's potential to become one of the largest construction tech IPOs, showcasing the growing maturity of the sector.
Timestamps
(00:00) - Introduction
(00:59) - Strategic approach to startup announcements
(01:45) - Non-linear founder experiences in construction tech
(02:19) - Foundamental's 2024 performance review and InfraMarket update
(02:45) - Conclusion and wrap-up
Resources or Companies Mentioned
InfraMarket: https://infra.market/
Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT
Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#ConstructionTech #VentureCapital #StartupStrategy
About This Episode
In this episode of AECVC, Patric Hellermann kicks off 2025 with a new weekly format discussing multiple key observations and data points in the architecture, engineering, and construction technology space. He covers three significant topics from the week, including an analysis of business models, Q4 2024 funding statistics, and web traffic trends in the AEC tech sector.
In This Episode
Understanding the advantage of variable cost business models in AEC tech, where companies can sell variable costs while maintaining fixed cost operations
Analysis of Q4 2024 funding statistics showing AEC tech reaching nearly 1% of total VC market share
Review of December 2024 web traffic data revealing key trends in construction tech adoption and market leadership
Insights into the performance of various AEC tech segments including reality capture, marketplaces, and sustainable materials
Timestamps
(00:00) - Introduction
(00:45) - Overview of new 2025 format
(01:15) - Fixed vs Variable Cost Analysis
(02:20) - Q4 2024 Funding Statistics
(02:45) - AEC Tech Internet Index Discussion
(04:30) - Conclusion and wrap-up
Resources or Companies Mentioned
OpenSpace: https://www.openspace.ai/
InfraMarket: https://infra.market/
Zedwork:
Moglix: https://www.moglix.com/
EquipmentShare: https://www.equipmentshare.com/
Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT
Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#AECtech #VentureCapital #ConstructionTechnology
015 | AI in 3D CAD | The Energy Bill (00:13:03)
About This Episode
In this thought-provoking episode, we dive deep into the energy costs and efficiency of AI-generated 3D models in architecture, engineering, and construction. Through detailed analysis and real-world examples, we reveal surprising findings about the energy consumption comparison between AI and human modelers in creating BIM and CAD models, with implications for the future of architectural design workflows.
In This Episode
Understanding everyday energy consumption benchmarks and their relation to AI model generation
Comparative analysis of energy costs for AI-generated 3D models across different building scales, from single-family homes to international airports
The revelation that human modelers are 875 times more energy efficient than AI in creating 3D architectural models
Critical insights into cost-effectiveness thresholds and optimal use cases for AI in architectural modeling
Timestamps
(00:00) - Introduction
(00:05) - Background on 3D CAD and AI integration
(02:27) - Energy impact of AI in image generation
(04:51) - Energy consumption analysis for different building types
(07:12) - Human vs AI modeling efficiency comparison
(09:38) - Cost analysis and practical implications
(12:00) - Conclusion and key takeaways
Resources or Companies Mentioned
Revit: https://www.autodesk.com/products/revit/overview
Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT
Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#AIinConstruction #SustainableTech #ArchitecturalModeling
014 | The State of AECS-Tech in Q3 2024 (00:07:34)
About This Episode
In this Q3 2024 funding analysis episode, Patric Hellermann breaks down the latest venture capital statistics for the AECS (Architecture, Engineering, Construction, and Supply Chain) technology sector. The analysis reveals that total VC funding has reached $35 billion (excluding Katerra, Vue, and Helio), with Q3 contributing $800 million despite being traditionally a slow quarter for investments.
In This Episode
AECS technology reaches $35 billion in total VC funding, showing resilience compared to broader VC market trends
Regional analysis reveals North America and APAC leading with 1% market share, while Europe maintains 0.5% in AECS tech investments
Seed stage funding hits all-time highs in AECS tech, reaching 3x the levels from 10 years ago, while growth rounds continue to decrease
Q3 2024 shows increased concentration ratio with top 4 deals making up 50% of total funding, indicating reduced market optionality
Timestamps
(00:00) - Introduction
(00:30) - Scope of analysis and sector definition
(01:15) - Total VC funding overview
(02:18) - Market share analysis
(03:45) - Funding round sizes and concentration
(04:41) - Regional breakdown analysis
(07:00) - Conclusion and unicorn status update
Resources or Companies Mentioned
Monarch: [No link provided]
Fortera: [https://forteraglobal.com/]
Knode: [https://www.knode.ai/]
Hero Software: [https://hero-software.de/]
Nexii: [https://www.nexii.com/]
Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT
Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#ConstructionTech #VentureCapital #StartupFunding
Would you like any modifications or have any questions about the generated content?
013 | Demand Shaping In Construction (00:10:01)
About This Episode
In this episode, we dive into the misconception surrounding standardization in construction. We explore why the common belief that construction should be more standardized overlooks the fundamental principle of demand shaping, drawing parallels with energy markets and the automotive industry to illustrate the concept.
In This Episode
Construction is already standardized at the smallest demand unit level
The importance of demand shaping in standardization across industries
Why modular and prefab construction face challenges in scaling
Lessons from energy markets and the automotive industry on standardization
Examples of demand-shaped construction in state-regulated environments
Timestamps
(00:00) - Introduction to the topic of standardization in construction
(00:49) - Current state of modular construction and common arguments
(02:23) - Explanation of the merit order concept in energy markets
(04:47) - Standardization in the automotive industry
(07:05) - Application of standardization principles in construction
(08:22) - Examples of demand-shaped construction in various countries
(09:33) - Conclusion and key takeaways
Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT
Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#ConstructionStandardization #DemandShaping #ModularConstruction
Would you like any modifications or do you have any questions about the generated content?
012 | My AEC Robotics Cheat Sheet (00:18:53)
In This Episode
Patric's framework for evaluating robotics companies in AEC, emphasizing capital efficiency and scalability
Key factors for success in AEC robotics: buyer readiness, success readiness, and recombination readiness
Ideal founder profiles and development processes for AEC robotics startups
Specific AEC segments that are prime for robotics innovation
Timestamps
(00:00) - Introduction to robotics in AEC
(01:08) - How I think about robotics in AEC
(07:38) - Excerpt from my AEC robotics framework
(12:35) - Examples of promising AEC segments for robotics
(14:28) - Early days dev process for AEC robotics
(17:19) - The robotics founders I look for in AEC
Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT
Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#AECRobotics #ConstructionTech #VentureCapital
011 | The AEC-Tech Internet Index | September Edition (00:14:17)
Here's the podcast episode description based on the provided transcript:
## About This Episode
In this episode, Patric Hellermann introduces the AEC Tech Internet Index, a powerful tool for analyzing adoption trends in the architecture, engineering, and construction technology sector. This innovative index uses web traffic data as a proxy to gauge the growth and market presence of AEC tech companies, offering insights beyond traditional venture capital metrics.
## In This Episode
Explanation of the AEC Tech Internet Index and its methodology
Analysis of rising companies and category trends in AEC tech in September 2024
Insights into adoption patterns for various AEC tech solutions
Discussion of the challenges in evaluating AEC tech companies using public data
Examination of specific company performances within different AEC tech categories
## Timestamps
(00:00) - Introduction
(00:05) - Overview of the AEC Tech Internet Index
(02:32) - Methodology and rationale behind the index
(04:59) - Analysis of current risers in AEC tech
(07:16) - Category trends and performance
(09:37) - Deep dive into specific AEC tech categories
(11:58) - Mindshare highlights and market dominance
(13:22) - Methodology details and data sources
## Resources or Companies Mentioned
AEC Tech Internet Index: https://www.foundamental.com/internet-index
SEMrush: https://www.semrush.com/
## Connect With Us
Spotify: https://open.spotify.com/show/3fvTj23GIMlAT6CCm4t1lT
Apple: https://podcasts.apple.com/de/podcast/aec-vc/id1740915855
Foundamental: https://www.foundamental.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/aec-vc-7186650851766083584/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Web: https://aecvc.com/
#AECTech #ConstructionTechnology #VentureCapital
010 | Grit & Stubbornness Look Similar (00:07:59)
As a VC, I often grapple with a crucial question: is this founder showing grit or stubbornness? In this article, I share my framework for evaluating persistence in AEC startups, emphasizing why learning and adaptability are key in our complex industry.
(01:15) Consistency vs. Adaptability
(02:26) Info Asymmetry Can Make It Hard To Diagnose
(04:00) Learning From Customer Truths
(05:00) … But AECS Makes Diagnosis Harder
(06:09) How To (Self-) Diagnose Grit or Stubbornness in Your AECS Venture
Last week, I met with five AEC founders. All were pushing hard, but I couldn't tell if they were showing grit or just being stubborn. This got me thinking.
Grit And Stubbornness Look Similar
Building in AEC is tough. Really tough. You need grit to succeed. But sometimes, that grit can look a lot like stubbornness.
Picture this: A founder, two years in, still pushing their original idea. Are they persistent or just stuck? From the outside, it's hard to tell.
In AEC, this is even trickier. Our industry is complex. Lots of moving parts. Lots of stakeholders. What looks like stubbornness might be necessary persistence in navigating this maze.
But here's the thing: As a VC, I need to tell the difference. My job is to back gritty founders, not stubborn ones.
So how do we do it? How do we know when to push and when to pivot?
I think it comes down to learning. Are you still learning from your customers? Are you adapting based on those learnings? If yes, that's grit. If not, you might be stuck.
In AEC, we have a unique challenge. Our industry has so many niches. So many potential pivot points. It's easy to justify "just one more try" in a slightly different market.
But here's a number that might shock you: 90% of startups fail. In AEC, I bet it's even higher. Why? Because we confuse grit with stubbornness.
Here's my thesis: True grit in AEC is about learning and adapting. It's not about blindly pushing forward. It's about being smart enough to know when to pivot.
Think about it. The AEC industry is worth $11 trillion globally. But it's fragmented. Complex. To capture even a slice of that, you need to be adaptable.
So, to all the AEC founders out there: Be gritty, not stubborn. Keep learning. Keep adapting. And remember, sometimes the grittiest thing you can do is admit you were wrong and change course.
009 | Print Homes With Concrete | Who Gets It? (00:08:10)
I'm skeptical about 3D concrete printing for homes. Despite major funding, I question its advantages over traditional methods and challenge founders to prove its value in residential construction.
(01:16) Spoken Plainly(02:51) When Is Concrete Used?(04:15) 3D Printing vs. Ready-Mix?(05:15) So It's The Automation?(06:22) Who Can Tell Me Why To Print Homes With Concrete?
I've been puzzled lately. 3D concrete printing for homes keeps attracting major funding. But I can't wrap my head around why.
Let's break it down.
The Trigger
Last week, I saw another $50M round for a 3D concrete printing startup. Their pitch? Revolutionizing home construction. My first thought: "Again?"
The Numbers
Residential construction is massive. In the US alone, it's a $240B market. Globally? We're talking trillions.
But here's the kicker: a typical 1,500 sq ft home takes 50-100 man-days to build. That's a lot of labor costs.
The Thesis (or lack thereof)
3D concrete printing promises automation. Fewer workers, faster builds. Sounds great, right?
But here's where I'm stuck:
1. Surface area: Homes aren't massive structures. Concrete shines in large-scale projects like bridges or high-rises.
2. Structural integrity: Single-family homes don't need the strength of reinforced concrete.
3. Efficiency: Ready-mix concrete, poured on-site, is already pretty darn efficient.
4. Sustainability: 3D printing often requires 20-50% more cement. That's bad news for carbon emissions.
5. Alternatives: What about automated stick-framing or robotic brick-laying? They seem just as promising, if not more so.
The Market Opportunity
I'm not saying it doesn't exist. But I'm struggling to see it clearly.
Is it really about automation? Cost savings? Speed? Or is there something I'm missing entirely?
The Technology
The "ink" (concrete mix) and printer heads are evolving. But are they solving real problems? Or creating new ones?
Ready-mix concrete works well for its purpose. Why reinvent the wheel if it's not actually round?
Call to Action for Founders
If you're working on 3D concrete printing for homes, I want to hear from you. Convince me. Show me the data, the cost savings, the environmental benefits.
Maybe I'm wrong. Maybe there's a massive opportunity I'm not seeing. If so, I'm all ears.
Prove me wrong, and you might just find your next investor.
008 | The State of AECS-Tech (incl. Constru-Tech) in Q2 2024 (00:09:43)
I just wrapped up my Q2 2024 analysis of AECS-Tech funding, and the numbers are too compelling not to share. This sector continues to defy expectations, showing remarkable resilience and growth in a challenging economic climate.
(01:03) Primer: What is the Scope of AECS-Tech
(02:16) AECS-Tech beyond $34B in VC Funding
(03:04) Quarterly Growth Remains since 2021
(04:13) AECS-Tech now at 0.53% of total VC (2x)
(05:24) Funding round sizes near All-Time Highs
(07:15) Healthy Distribution: Top 10 Deals = 34%
(08:35) No Change in Unicorns Last Quarter
Record-breaking funding
The headline? AECS-Tech has surpassed $34 billion in total VC funding. This isn't just a number - it's a testament to the sector's growing importance and the increasing recognition of its potential.
Consistent growth trajectory
What strikes me most is the consistency of this growth. While many sectors are still struggling to match their 2021 peaks, AECS-Tech has maintained a steady upward trajectory. We're now regularly seeing four-quarter rolling totals above $3 billion, with peaks hitting $3.7 billion. This is a significant step up from the pre-2021 era when we hovered around $2.5-3 billion.
Increasing share of global VC funding
AECS-Tech is claiming a larger share of global VC funding. This shift suggests a broader recognition of the sector's potential, likely driven by the pressing need for innovation in construction and infrastructure.
Resilience in growth-stage funding
The resilience of growth-stage funding in AECS-Tech is particularly noteworthy. While the broader VC market has seen a sharp decline in later-stage rounds since 2021, our sector has maintained relatively stable levels. This could indicate a maturing ecosystem with companies demonstrating real value and growth potential.
Healthy distribution of funding
Another encouraging sign is the distribution of funding. The top 10 deals accounted for only 34% of the quarter's funding. This suggests a healthy ecosystem with a diverse range of companies attracting investment, rather than a few giants dominating the landscape.
My thesis
We're witnessing the early stages of a fundamental shift in how we approach the built environment. The sustained growth in AECS-Tech funding isn't just a trend - it's a response to urgent global needs. From sustainability and efficiency to addressing housing shortages and infrastructure challenges, the problems this sector tackles are only becoming more pressing.
The consistent growth, increasing share of global VC funding, and resilience in later-stage rounds all point to a sector that's not just surviving, but thriving. We're seeing a convergence of technological capability, market need, and investor interest that could drive significant innovation in the coming years.
Call to action for founders
To the founders out there: the data is clear - there's never been a better time to build in AECS-Tech. The funding is there, the problems are pressing, and the market is increasingly receptive. If you're working on solutions that can transform how we design, build, and maintain our world, now's the time to accelerate. The opportunity is immense, and the momentum is with you. Let's build the future of our built environment together.
007 | The P&L of the Construction Industry (00:09:30)
Here's a revised short description for a Spotify podcast in first person singular:
I break down why the traditional SaaS model often falls short in construction. I'll dive into the industry's P&L, revealing why services trump software and how startups can tap into a market 50 times larger. I'll share insights on building trust, delivering outcomes, and succeeding in the unique world of AEC. Essential listening for founders and VCs in the construction tech space.
Chapters
(01:13) The herd heuristic: SAAS
(02:37) The 1st principle: AECS = outcome business
(04:14) Services address 50x more market than SaaS
(04:33) The P&L of the industry
(06:23) IT Budgets in AEC(S)
(07:46) What it means for founders
The P&L of the Construction Industry
I've been hearing a lot about "software as a service" lately. It's the golden child of the VC world, especially in enterprise tech. But here's the thing - it's not always the best fit for construction. Let me break it down.
Construction isn't like other industries. It's project-based, with strict deadlines and quality requirements. Miss those, and you're looking at hefty penalties. This makes construction an outcome-driven business.
The P&L of the Construction Industry
Let's look at the numbers. In construction, the typical net profit margin is about 2%. That means 98% of revenue goes to costs. And guess what? Most of that is materials and labor.
Here's the kicker - IT budgets are tiny. A 2021 study showed 58% of general contractors spend less than 1% of revenue on IT. Only 25% spend 3% or more. That's a small slice of the pie for software companies.
But there's a bigger opportunity here. Services address a market 50 times larger than SaaS in construction. That's right, 50 times.
So, what does this mean for startups? Don't just follow the SaaS playbook. Look at the industry's needs. Construction companies want guaranteed outcomes. If you can deliver that, even if you use software to do it, you're golden.
Start with services. Build trust. Show you can deliver. Then, as you learn more about your customers' needs, you can transition to a SaaS model over time.
To founders out there: dig into the vertical singularities of construction. Listen to your customers. They'll tell you what they need. If you can guarantee outcomes and meet those tight project deadlines, you'll find success - whether you're using software or not.
006 | Thesis: Warehousing For Construction (00:10:42)
In this episode, I dive into an overlooked opportunity in the construction industry: Warehousing. Is there potentially space (pun) to build a generational company, or not?
I explore why construction is fundamentally a supply chain business and how the lack of just-in-time logistics leads to operational and commercial issues on job sites. Leading to a first principles need for buffering in this complex, interdependent industry, as manufacturers and 3PLs aren't stepping up to fill that buffer role.
Finally, I put forward a to-be-validated thesis for entrepreneurs by providing off-site warehousing and just-in-time delivery to contractors.
Tune in to learn about the compelling numbers behind this play and how it could significantly boost margins for contractors while solving a major pain point in the industry.
(00:58) Construction is a supply chain game
(02:38) It is anything but just-in-time
(03:04) Resulting in inventory lying around on sites
(03:25) Creating operational = Commercial Issues
(05:44) Buffering will always be required
(06:00) Manufacturers = 3PL's won't be the buffer
(09:43) Thesis: The Opportunity
Why isn't anyone innovating in construction warehousing and logistics? In this episode, I lay out the thesis for a major opportunity in the building industry: providing warehousing as a service for construction projects.
Construction is fundamentally a supply chain business, but one that is far from "just-in-time." Jobsites are cluttered with inventory, creating massive inefficiencies and risks.
By strategically locating secure warehouses near major metro areas, a startup could enable contractors to streamline logistics, cut costs, and boost productivity.
Studies show 25% greater resiliency and 40% lower logistics spend from improved supply chain visibility. The revenue potential is huge.
I explain the concept and lay out the numbers. If you're a founder who wants to tackle this opportunity, reach out. Leading contractors are eager for this solution.
Let me know if you would like me to modify this description in any way. The goal was to provide an intriguing summary that captures the key points and encourages listeners to check out the full episode.
005 | Outcome-As-A-Service (00:12:50)
In this episode of the AEC_VC podcast, I dig into the concept of "outcome-as-a-service" - a business model that is enabling a new breed of startups to build massive companies in the architecture, engineering, construction and supply chain sectors.
I explain how outcome-as-a-service differs from SaaS, targeting huge cost centers by guaranteeing project results vs just providing tools. I lay out the attributes of companies winning with this model, from how they align with project budgets and buying processes, to how they leverage technology behind the scenes to deliver an end service.
Finally, I share examples of trailblazing companies putting outcome-as-a-service into practice across robotics, managed marketplaces, energy audits, engineering services, and contractor platforms. An old-school approach that is unlocking new opportunities - founders, take note!
(00:00) Summary/Introduction
(01:53) Services are the norm in AECS: Here's why
(03:15) The difference to SaaS
(07:00) THINK: P&L and purchasing
(08:11) Framework: The attributes of service winners in AECS
(09:50) Examples
004 | Hidden in Spite of Obvious (00:12:28)
In this episode of my AEC_VC podcast, I share my "Hidden in spite of obvious" framework for identifying contrarian investment opportunities in the architecture, engineering, and construction (AEC) sectors. I discuss how the most promising early-stage companies I invest in often pursue ideas that are obvious to industry insiders but remain hidden from outsiders. I emphasize the importance of seeking strong signals, such as customer adoption and cash flow, rather than vanity metrics like fundraising hype. I also encourage founders to develop a deep understanding of the industry's nuances to spot these hidden gems. Tune in to learn how I uncover the next game-changing opportunities in AEC and how you can too.
(00:00) Summary of this episode
(00:34) Introduction
(00:55) B2B / AEC has many nuances
(02:42) My B2B-vertical framework
(06:48) Strong Signals v. Poor Signals
(10:38) Empathy matters early!
(11:22) Founders in AEC: Follow my Framework
003⎢A New Infrastructure Platform Titan? (00:16:44)
In this podcast episode I talk about the following topics:
• My take on Schneider Electric's reported $16 billion acquisition of Bentley Systems
• My views on the rise of "infraplatform" titans combining design software and operational platforms
• The massive global infrastructure upgrade cycle that I believe is driving this strategic rationale
• The bold thesis I see of controlling authoring to dictate infrastructure hardware choices
• The risks I foresee around integration, valuation, and executing this mega-merger of contrasting assets
Timestamps:
(03:20) Design software for infrastructure and data centers
(05:52) Why now?
(08:32) Why Bentley?
(10:22) Why Schneider Electric?
(11:49) A Great Thesis!
(13:54) It's A Strategic Deal
(15:40) Implication: The CAD War Is On
002 | The Macro Thesis No One Sees (00:09:42)
In this episode, I share my unique macro thesis on the AEC (Architecture, Engineering, Construction) technology space. Key highlights include:
The distinction between "real world" AEC tech versus property tech, and why the fundamentals of each are vastly different
How AEC tech is thriving counter-cyclically, with funding tripling since 2021 and 6x growth over the past 5-6 years
The universal pattern I've observed across sectors - once a space hits $5 billion in VC, it typically reaches $50 billion in 6-8 years
The critical importance of building robust data infrastructure as the foundation for unlocking the next wave of innovation
The potential for significant value creation, with only 16 AEC tech unicorns today but over 100 more expected to emerge
Don't miss this insightful look into the macro trends shaping the future of the AEC technology landscape.
