Construction tech exits have picked up as acquirers hope to jump into the next wave of construction digitization.
Construction tech exits are set for a record year, with 13 M&A transactions and 3 IPOs so far in 2018.
Construction tech is just starting to take hold in the industry — but funding is booming despite production difficulties at the space’s most prominent unicorn, Katerra. The space is on track for a record fundraising year, with funding YTD already up 60% from 2017.
Low digitization, declining industry productivity, and stakeholders with misaligned incentives provide ample opportunity for technology-driven improvement.
“Construction is ready technologically, demand-wise, and product-wise to go through the digitization that manufacturing went through 25 years ago.” Andrew Anagnost, CEO, Autodesk
Companies like Autodesk led the first wave of digitization in the construction industry with CAD and building information modelling (BIM) software. The transition from paper-based drawings of building designs is largely over, and the next wave of technology adoption in the construction industry is up for grabs.