Great article highlight the BuiltTech opportunities.
Construction is one of the largest industries in the world. It’s also one of the most inefficient: construction jobs typically take 20% longer to finish than scheduled, and cost up to 80% over the original budget.
Technology can solve a lot of these issues, but prior to 2015, rarely attracted venture capital or broad industry interest.
Over a decade ago, Kiddar Capital founder and President Todd Hitt was looking for a digital construction management software. That search led him to invest in Procore, which is now one of the most widely used construction management platforms in the world.
The greater part of our venture portfolio at Kiddar Capital is made up of built world technology investments modernizing the world’s most fundamental built world industries: construction, real estate, logistics, and automation.
The following are a few of our portfolio companies.
These companies are more than just businesses. They represent an ongoing transformation across multiple interconnected industries, from construction and real estate through insurance, finance, logistics, automation, and more. Developed real estate makes up 60% of the total mainstream assets in the world, and any technology that can impact even a percentage of that market is looking at a huge opportunity.
“It’s not rocket science. It’s what we see every day. When we’re in something and we know there’s a problem and we see a technology that fixes that issue, we invest. That gets us ahead of the curve.” — Todd Hitt
Our unique position and perspective in real estate and construction at Kiddar Capital allows us to invest in tech solutions ahead of the curve. We have a large real estate portfolio and a relationship with a billion-dollar construction firm. We know what it’s like to finance a construction project, zone a piece of land, own something for 50 years and then demolish it to build something new.
We live and breathe the same industries we are working to innovate, and we spend every day searching for new and original solutions in these markets. That’s The Kiddar Way.
Sydney construction software startup Assignar has secured $3 million of capital in a series A round.
Venture capital firm Our Innovation Fund (OIF), also based in Sydney, led the round that will help Assignar boost local sales then expand its presence in the US market, where it already has a small client list
“Due to the growth of cloud and mobile technology as options in the field, the construction sector is ripe for disruption,” McCreanor told Dynamic …
The post ‘SMART MONEY’: VC FIRM OUR INNOVATION FUND BACKS TWO TECH STARTUPS TO THE TUNE OF $5M appeared first on Dynamic Business .
Caterpillar Inc, the world’s largest maker of construction machinery, has announced that it will invest in Hadrian, a brick-laying robot developed back in 2015 by an Australian aeronautic engineer.
The post Caterpillar buys into Australian bricklaying robot appeared first on GCR.com.
On Thursday, June 15, construction experts convened at the Columbus Club in Washington, D.C. to discuss the future of their industry. Hosted by RealClearPolitics and sponsored by USG Corporation and the U.S. Chamber of Commerce, Building the U.S. Economy: The Construction Industry’s Role panel brought together voices from business, politics, and research.
“It’s going to make us smarter about the future challenges,” said Jennifer Scanlon, President and CEO of USG Corporation, who spoke before the panel and worked with the Chamber on developing the index. “We’re shining a light on this critical role that commercial construction plays in our economy. It will identify areas of strength and pinpoint opportunities for improvement.”
Congressman McKinley of West Virginia also endorsed the index. “Most Americans, and… certainly most people in Congress have no idea of the impact [of construction],” he said. “So this idea of the index, and more focus we can have on this is going to be very helpful… We’ve got to make sure people understand how this connects our whole economy.”
What follows are highlights from the panel, which covered topics including labor, regulation, building green, infrastructure, and technology in construction.
With the construction industry facing an acute labor shortage, the panelists weighed in on how this affects the industry and what they can do to face this challenge.
“We want to make sure we have the right people to do the job, with the right quality control. That’s our big focus right now… It’s hard to find and recruit that talent.”
— Colin Dunn, President of Heffron Company
“There’s an enthusiasm gap for construction related jobs in the colleges… It’s our job to get out to the public that this is a great industry to be in.”
“In the construction industry based on what we’ve seen based on the macroeconomic data is that is was by far the hardest-hit industry in the recession. 21% of the jobs were lost, only 10% of those jobs have come back… we have to be prepared for tomorrow, because we’re going to get back to that pre-recession level of employment within the next 5 to 10 years.”
— Andrew Hanson, Senior Research Analyst for the Center of Education and the Workforce at Georgetown University
The consensus from the panel was that fair regulation is welcome and needed, but that current over-regulation restricts industry growth and hurts small construction businesses.
“That red tape is going to add cost and prevent the construction industry from expanding employment, creating jobs, so absolutely I think that that’s an issue. But in general what I would like to see from our politicians at multiple levels is more transparency.”
— Andrew Hanson
“There has to be some regulation, but it’s so over-regulated that you can’t get a job off the ground.”
— Todd Hitt
While building green is more expensive, it’s increasingly desired by clients, required by law, and supported by the construction industry.
“I think 20 years from now we’re not going to see anything that’s not considered to be a LEED silver building being built new… it’s coming, so everybody needs to prepare for it.”
— Todd Hitt
“We fully support it… But the cost of doing green needs to incorporated up-front with the developer.”
— Colin Dunn
The only surety in American infrastructure is that it needs serious work. There is uncertainty in the construction industry about what an infrastructure bill might look like, and how they could fulfill that work under the present labor shortage. However, non-traditional collaborations like private equity and private-public partnerships could help fill the gap.
“When it comes to infrastructure, I think you’ll find that private equity — which we participate in through Kiddar Capital — is poised to help fund these things in innovative ways.”
— Todd Hitt
“Technology is changing our industry a lot in the sense that a lot of the up-front work is done at a computer, not by a foreman on-site laying it out.”
— Colin Dunn
“We invest heavily out of our capital unit into technologies, what we call built world technologies. Real estate, construction, automation, logistics, right, all crucial to where construction is going.”
— Todd Hitt
Watch the full discussion at realclearpolitics.com.
Building the U.S. Economy: The Construction Industry’s Role was originally published in Kiddar Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.