6 European VCs Investing In Construction Tech

Europe’s construction industry is growing, rising by an impressive 605 billion euros between 2019-2023 alone (Statista).

But despite being such a fast-growing industry, it’s relatively slow to innovate. The problem lies in the fact that the construction industry is highly regulated. Couple that with labour shortages, an increase in the cost of materials and the need to build sustainably and you can see why the sector is ripe for innovation.

It’s no surprise then, that startups and VCs are setting out to improve the way we design and build the cities we live in.

 

What Is Construction Tech?

 

Now you might be thinking: what does construction tech mean? Whilst it can be used as a term to describe a number of different innovations; it generally refers to any tech software or product that improves the quality or efficiency of construction.

Examples of construction tech include:

• Software to help with project management
• Making resources easier to find and acquire
• Software for sustainability monitoring
• Robotics for dangerous tasks
• Data measurement
• Team management and hiring

 

Why Is Construction Tech Appealing To VCs?

 

Any sector with high-growth potential is attractive to VCs, but construction technology is particularly appealing for a few reasons:

• Market size: The construction industry is worth billions, making it a huge market to disrupt. VCs tend to look for startups that can produce high returns, making it a good market-fit
• Relatively low innovation to date: So far, the construction industry has lagged behind when it comes to tech, meaning there is plenty of opportunity available to innovate
• Net zero: Many countries across the EU are pushing towards net zero, meaning the tools and materials that allow them to achieve this are becoming more in-demand
• Rising cost of materials: As supply chains become more fragmented and materials become more expensive, low-cost but durable materials have a growing market
• Constant demand: Unlike other industries, construction will always be high on government and business agendas. Because of this, it’s an area that will likely be able to withstand any market volatility

So, who are the European VCs looking for the next big thing in construction tech? We take a look…

 

 

European VCs Backing Construction Tech

 

Foundamental

 

 

Foundamental is a Berlin-based VC fund that looks to invest in companies across construction tech, architecture, engineering and design. According to NFX, it’s one of the largest global investors in the sector worldwide.

Though the fund is based in Europe, Foundamental invests in businesses all over the world. In their own words, they look for ‘exceptional founders
re-creating the real world globally’

 

Concrete VC

 

 

Based in London, Concrete VC is setting out to ‘transform the built environment, driving data and automation into the world of real estate and construction’. Specifically, Concrete VC looks to back founders with tech and real estate credentials that are setting out to disrupt the industry.

 

Atomico

 

 

Whilst not a specialised VC firm, Atomico invests in technologies that are transforming the world. Amongst other sectors, they look for businesses innovating in mobility, industrial automation, planet positive and infrastructure tech.

Atomico is a founder-built VC firm with a focus on companies that are making the world better.

 

noa

 

 

noa is a London-based VC firm that invests specifically in tech that helps decarbonise the built world.

Bringing together sustainability and construction, noa is changing the way that our cities are built. Their portfolio features a number of companies that are pioneering new ways for buildings to be designed, powered and used.

 

PT1

 

 

PT1 is a pre-seed and seed VC fund that invests between €300k to €4M in companies that make an impact in:

• Real estate
• Energy
• Infrastructure resilience
• Climate

They back bold founders and have a suite of specialised advisors on hand, ready to help entrepreneurs scale fast.

 

Cemex Ventures

 

 

Hailing from Madrid, Cemex Ventures invests in the most sustainable and scalable companies driving the construction industry revolution. With a global focus, the VC looks at ‘building a better world’ with a particular focus on sustainable ventures. To date, they have invested in a number of construction companies building robotics, software and AI.