Deal activity also declined, with Q2'16 seeing 8 deals to construction tech startups compared to a peak of 12 deals in the prior quarter.

After a record year in 2015, funding to construction tech startups in the first half of 2015 saw a 26% drop when compared to the first half of 2015.

To get a better sense of activity in the space we used CB Insights data and analytics to dig into quarterly investment trends as well as some of the most well-funded construction tech startups to date.

Construction tech startups are working on construction design, team collaboration, and project site-management while other startups are using drones and big data analytics to revolutionize the traditional mapping and surveying of construction sites.

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Deals and dollars

In Q2’16, investment activity to construction tech dropped significantly quarter-on-quarter with startups raising $13M across 8 deals (compared to a peak of 12 deals in Q1’16). This broke a streak of 5 straight quarters with 11+ deals. In fact, Q2’16 represents the lowest quarterly deal count since Q4’14.

On a positive note, funding levels are still healthy when looking at the longer-term historical picture. The first half of 2016 has already surpassed 2014 in terms of funding.

 

Construction-financing_deal.dollars_q2-16

 

Most well-funded companies

Despite being a nascent industry, two of the top 10 construction tech startups have raised more than $100M in total disclosed funding.

The most well-funded startups include PlanGrid, which raised one of the largest construction tech rounds in history — a $40M Series B in November 2015 from Tenaya Capital, Sequoia Capital, Founders Fund, Northgate Capital, and Y combinator.

Check out the top 10 list below.

Most Well-Funded Construction Tech Startups
Company Total Disclosed Funding ($M)
IronPlanet  $        136
Procore Technologies  $        130
PlanGrid  $          59
Flux Factory  $          39
Newforma  $          21
BuildZoom  $          14
FieldLens  $          12
Architizer  $          12
Vizerra  $             9
BuildingConnected  $             9

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