Seed and Series A construction tech deals accounted for three-quarters of deals in 2016 YTD.
Construction tech has been a relatively nascent space, but activity has picked up in the last few years. With infrastructure now back in the spotlight and construction spend expected to increase, technology could play a key role in making the existing workforce more efficient. We used the CB insights database to analyze the funding and exit landscape for construction tech.
Track all the construction tech startups in this brief and many more on our platform
Startups working in construction tech have the potential to upend approaches to design, procurement, and operations. Sign up for a free trial and look for Construction Tech Startups in the Collections tab.Track Construction Tech startups
Construction tech funding
Through 2014, construction tech saw little activity. But in 2015, there was a major spike in both deal and dollar activity, with $400M invested across 52 deals. This represents more financing than the previous 3 years combined and a 79% increase in deal activity over 2014. 2016 has seen a slowdown in both deals and dollars with $151M projected through the rest of the year across 41 deals.
On a quarterly basis, we can see that each quarter of 2015 saw more than $50M of investment, with the last two quarters of the year seeing more than $100M in funding. Each quarter since 2015 has seen at least 10 deals.
Largest construction tech deals
Most of the spike in funding in 2015 can be attributed to large deals to a handful of companies. Three of the largest deals since 2012 happened in 2015, with Onshape, Procore, and Plangrid all raising $40M+ rounds.
Construction tech deal share
Deal share into construction tech indicates that the space is still relatively immature. Most growth has been in the early stages, with 2016 seeing three-quarters of all deals in the seed/angel or Series A area. Some companies are now raising later stage Series D and E+ rounds as they become larger and more established.
Despite seeing an upward trend since 2012, construction tech has not seen many liquidity events. We have yet to see a year with double-digit exits, though there have been a couple of IPOs.
Though there have not been many exits in total, there have been several large exits. 2015 saw multiple $500M+ exits in the construction tech space, including IronPlanet, Textura, and ConstructConnect. Below is a snapshot of all three from our database.sign up for a free trial to learn more about our platform.