Though mega-deals in a few companies dominate construction tech headlines, much of the action is in early-stage deals.
Construction tech is on track for a record fundraising year. Funding is already up 60% from 2017, with another quarter to go this year.
Much of the action in construction tech is at the seed and Series A stage, though big later stage deals have grabbed headlines and driven up dollars rushing into the space. Since 2013, the top 3 investors in construction tech startups are Y Combinator, 500 Startups, and Techstars.
Startups providing modular construction, analytics, and other services to the construction industry are an attractive target for investors looking to get in on the early digitization of an industry.
Low digitization, declining industry productivity, and a slew of stakeholders with misaligned incentives provide ample opportunity for technology-driven improvement.
In this post, we’ll look at the composition of top construction tech investors, and the drivers behind early-stage construction tech investment.