Author name: Owen Drury

This Week’s Quickfire BytesFuel your curiosity with this week’s contentW/C 2nd September 2024 UPCOMING SERIES Super Series Episode 001 – Origins In episode 001, we go right back to the start. How did Foundamental come to be? What was the “random mash-up” that led to the firm’s genesis? Series #1 with Foundamental is coming Wednesday, September 11th 2024. Watch Teasers NEW EPISODESConstruction On Mars – How Space Tech is Transforming Robotics as a Tool in Construction “Construction robots are tools, not job replacers.” – Dr. Henning Roedel In this episode of BitBuilders, we had Dr. Henning Roedel, former robotics lead at DPR Construction, sharing insights on the future of construction robotics. Tune in to find out about:  ➡️ Why robotics startups should focus on being tools, not subcontractors  ➡️ The importance of quick, iterative pilots vs. long-term commitments  ➡️ Key performance indicators for successful robotics implementation  ➡️ The pros and cons of different business models for construction robotics open.spotify.com/episode/1yiyxSDjsDDShU2mKVkD5T Bridging Silicon Valley and Construction Sites – The Balance of Innovation and Tradition In Construction – Scott Ellison “Go slow to go fast.” The counterintuitive advice for startups in construction tech In this episode, we had Scott Ellison share insights on the future of construction technology. We learned about balancing disruption with respect in an age-old industry, the importance of problem-led growth, and why the “jockey” matters more than the “horse” in early-stage investing. open.spotify.com/episode/1btWZZ1xKJsSdGPcnaUrcb Billion-Dollar Blindspots: Are Construction Tech’s ‘Best’ Lists Building on Quicksand? In this episode, we explored McKinsey’s updated report projecting a $22 trillion construction market by 2040, alongside the industry’s looming labor crisis. We discussed the expansion of the Bricks and Bytes podcast network, including new shows like “BitBuilders” focusing on robotics in construction. Patric also shared his critical analysis of “best-of” lists and market maps in construction tech, revealing surprising insights about company success rates. open.spotify.com/episode/4FrgSAE75BmhKDYhkiyQzf View All Podcasts BRICKS & BYTES BULLETINThe Outsider Redesigning Architecture Altaf’s story began with a seemingly routine project: reconstructing a UNESCO World Heritage Site in 3D.  As Altaf collaborated with architects, he was struck by a startling realization. “Most of their tools or software stacks were built in the late 90s, maybe early 2000s,” he recalls. “There’s a lot of silos and inefficiencies in the entire process of executing a design.” This epiphany set Altaf on a path that would challenge his career aspirations and push him to the limits of his capabilities. As a hobby, he developed a plugin for SketchUp, a popular 3D modeling software.  bricks-bytes.beehiiv.com/p/outsider-redesigning-architecture Read Full Article 2 FAVORITE QUOTES: “My recommendation is do sorties, right? Limit your pilots. If it’s early stage tech, limit it to a week or two, right? Um, or a one day thing.” – Henning Roedel suggests that robotics startups should conduct short, focused pilots rather than long-term commitments to quickly validate their technology. “In the US, the construction workforce will lose 40 percent until 2030 from today. Another 40 percent.” – Patric on the severe labor shortage issue facing the construction industry, particularly in the United States LATEST STORIES: Exits in Construction Tech: Analysing Recent M&A Activity and IPO Trends Explore the evolving landscape of construction tech exits: M&A trends, IPO opportunities, and valuation insights. Uncover what’s driving liquidity in this dynamic sector. Headcount Growth vs. Substance: What Really Matters When Evaluating Construction Tech Startups Startups are constantly vying for attention from investors and industry leaders. But what really sets a promising startup apart from the rest? Is it rapid headcount growth, or something more substantial? Beyond the ENR Top 400: Conquering Construction’s Fragmented Market Discover strategies for construction tech startups to succeed beyond the ENR Top 400. Learn how to navigate and thrive in the fragmented construction market. View All Articles BONUS CONTENTWhat Are Investors Betting On? OUR SPONSORS Shft — helping contractors like you leverage BIM to secure a leading position in the race towards construction’s digital future.  BuildVision — streamlining the construction supply chain with a unified platform for contractors, manufacturers, and stakeholders. Powered by beehiiv

ANNOUNCEMENTNew Podcast Formats Wow. There has been a lot going on at Bricks & Bytes recently. And to add more to the mix, last week we released episode 001 of Groundbreakers. More on this later. But the re-structuring is in full flow. This is all part of our plan to better segment our content based on our audience’s interests. With Bricks & Bytes, we found the breadth of content to be too large. We struggled to produce consistently good content that appealed to our audience’s vast array of personas. So with that, Bricks & Bytes currently consists of the following podcast formats: Bricks & Bytes – A broad construction tech podcast  Bricks, Bucks & Bytes – Funding, Market and Investor News BitBuilders – Robotics In Construction and Space Groundbreakers – The Construction Tech Operators and Founders Podcast And next week, we release series 01 of our Super Series format. This is a paid-only form of content that goes DEEP (with a capital D) into the truly generational companies building in the AEC space. What better way than to kick it off, with in our opinion (and we have spoke to many) the top investor in the space. Foundamental. Watch the trailer here: Groundbreakers – The Founders & Operators Podcast As we’ve built Bricks & Bytes over the years we’ve grown an interesting network of people. And as the brand grows, as does the quality of expert we get access to. With this, we thought dedicating a podcast to a highly curated list of Founders and Operators in AEC technology was the right way to go.  The aim with Groundbreakers is to provide a stage for the very top Founders and Operators.  How do we find and curate these people? Our expert network Introductions and recommendations from other top Founders and Operators Undisputed previous success So watch this space; you will not be disappointed with the lineup. September’s episodes: 002 – Dev Amratia – nPlan – 12th September 003 – Dustin DeVan – Ediphi – 26th September Follow Groundbreakers here. INDUSTRY INSIGHTSThe Outsider Redesigning Architecture Altaf’s story began with a seemingly routine project: reconstructing a UNESCO World Heritage Site in 3D.  As Altaf collaborated with architects, he was struck by a startling realization. “Most of their tools or software stacks were built in the late 90s, maybe early 2000s,” he recalls. “There’s a lot of silos and inefficiencies in the entire process of executing a design.” This epiphany set Altaf on a path that would challenge his career aspirations and push him to the limits of his capabilities. As a hobby, he developed a plugin for SketchUp, a popular 3D modeling software.  To his surprise, people started buying it. Suddenly, Altaf found himself at a crossroads: pursue his PhD dreams or dive into the world of entrepreneurship? The decision wasn’t made lightly.  For a year and a half, Altaf wrestled with the choice, continuing to work on plugins and observing the market response. The turning point came from an unexpected source – rejection from Stanford’s PhD program. This setback forced Altaf to reevaluate his path, leading to the birth of Snaptrude, a cloud-based platform aimed at revolutionizing architectural design. But bringing innovation to an industry steeped in tradition proved to be a Herculean task.  Altaf and his team ventured into uncharted territory, facing technical challenges that would have deterred many others. “Cloud is even harder,” Altaf explains, “especially with the web browser as a client, because not a lot of fundamentals are available.” Altaf and his team make plans for 2024 The team had to build everything from scratch, including the geometry kernel – the heart of CAD software. It was a monumental undertaking that required not just technical skill but also a clear vision of what the future of architectural design could look like. As Snaptrude began to gain traction, Altaf faced another challenge: securing funding.  His persistence in the face of rejection became legendary. Shubh, an early investor, recalls saying no to Altaf multiple times before finally investing. This tenacity in the face of adversity showcased Altaf’s unwavering belief in his vision and his ability to turn setbacks into opportunities for growth. Throughout the journey, Altaf’s vision remained clear: to create a modern design tool as collaborative as Google Docs, but with the complexity needed for detailed construction design. This vision shaped Snaptrude’s development, focusing on interoperability and adding value to existing workflows rather than trying to replace them entirely. Altaf’s approach to building his team reflected his innovative spirit. He sought out individuals with entrepreneurial experience, fostering a culture of ownership and innovation within Snaptrude. This “give a shit, no bullshit” culture became a driving force behind the company’s growth and success. Snaptrude attends this year’s NXT BLD/DEV As Snaptrude continues to evolve, Altaf’s ambitions grow even grander. He envisions a future where Snaptrude has transformed the urban landscape, enabling architects to create more sustainable, efficient, and livable cities. The company’s recent $14 million Series A funding round is a testament to the potential that investors see in this vision. Reflecting on his journey, Altaf offers valuable insights for aspiring entrepreneurs.  “It always takes way longer than you anticipate with everything,” he advises. But perhaps more important than any specific piece of advice is the mindset that Altaf has cultivated – a commitment to continuous learning and self-improvement. From an outsider with a hobby project to the founder of a company that’s raised $21.8 million in funding, Altaf Ganihar’s journey embodies the power of persistence, fresh perspectives, and the courage to challenge the status quo.  In an industry resistant to change, Altaf and Snaptrude are proving that sometimes, it takes an outsider to see the possibilities that insiders have overlooked. As Altaf puts it, “If I did not jump in and try doing this, who else would have?” His story serves as an inspiration to innovators everywhere, demonstrating that with vision, persistence, and the right mindset, it’s possible to disrupt even the most established industries. Check out

This Week’s Quickfire BytesFuel your curiosity with this week’s contentW/C 26th August 2024 UPCOMING SERIES The Bricks & Bytes Super Series A deep dive into the minds of AEC tech’s top investors. Series #1 with Foundamental is coming Wednesday, September 11th 2024. Watch Teasers NEW EPISODES8 Rejections to Architectural Revolution: Altaf’s Journey Building Snaptrude On this first-ever episode of Groundbreakers – we dive into the remarkable journey of Altaf, founder of ⁠SnapTrude⁠, who’s reshaping the architecture and construction industry. From his roots in geometry research to revolutinising design tools, Altaf shares how persistence and vision turned rejection into triumph. We’re also joined by Shub Bhattacharya from ⁠Foundamental⁠, an early investor in SnapTrude, offering unique insights into the startup’s growth. open.spotify.com/episode/5er4XQYF57gYz1yUtiACaS How Mighty Buildings is Reshaping Construction’s Future with 3D Printed Homes Is 3D printing the future of construction? This startup’s journey might surprise you. In this episode of BitBuilders, Gabriele interviews Alexey Dubov, co-founder of Mighty Buildings. We learned about Alexey’s journey from robotics to construction tech, the challenges of building a hardware startup in the construction industry, and how Mighty Buildings is transforming home building with 3D printing technology… and much more! open.spotify.com/episode/4RNMBYMVCabZIMmz2v0ie5 The Niche Domination Strategy – Why 1% of a Huge Market Could Kill Your Startup Is your startup targeting just 1% of a massive market? Think again. This common pitch strategy might be hurting your chances with investors. In this episode, we learned about Opus Flow’s €1.7 million investment to boost their ERP solution for sustainable installers. We also explored the 3D visualization market, discussing by 7.2 (formerly known as Apex Partners)’s investment in Lumion, a key player in AEC software. Patric also shared valuable insights on building successful startups in crowded markets like construction tech. open.spotify.com/episode/6MFL8o71Y5FCpClwG5tVLZ View All Podcasts BRICKS & BYTES BULLETINNSFW: Build a F*cking Business The Fallacy of ‘1% of the Market’: Why You Need to Build a Real Business In our most recent episode of Bricks, Bucks & Bytes, Patric offered a groundbreaking, blunt but powerful piece of advice:  “If you want to build a fucking business, build a fucking business.” This colorful statement was prompted by our discussion on a trap many entrepreneurs fall into when pitching their startups – the “1% of the market” argument. bricks-bytes.beehiiv.com/p/nsfw-build-fcking-business Read Full Article 2 FAVORITE QUOTES: “More than FOMO, which is the fear of missing out, the most important thing is fear of messing up.” – Altaf on the mindset of architects and why they might be hesitant to adopt new technologies “Nothing interesting happens in the solid core. You’re not allowed to say that anymore.” – Alexey on the innovation in established companies, suggesting that startups have an advantage in driving change LATEST STORIES: Navigating Startup Valuations: A VC’s Perspective – Bricks and Bytes Startup valuations are crucial in venture capital. Jenny Song from Navitas Capital discusses their disciplined approach to valuing startups in today’s dynamic market. The ConTech Tightrope: Mastering Product Development and Market Entry Simultaneously In the competitive contech landscape, startups must master the delicate balance between product development and market entry. This article explores the challenges and strategies for success. Matrak: Revolutionising Construction Supply Chain Visibility Learn how Matrak, an Australian startup, is revolutionising the industry with its advanced construction supply chain visibility solutions. View All Articles BONUS CONTENTWhat Are Investors Betting On? OUR SPONSORS Shft — helping contractors like you leverage BIM to secure a leading position in the race towards construction’s digital future.  BuildVision — streamlining the construction supply chain with a unified platform for contractors, manufacturers, and stakeholders. Powered by beehiiv

INDUSTRY INSIGHTSThe Fallacy of ‘1% of the Market’: Why You Need to Build a Real Business In our most recent episode of Bricks, Bucks & Bytes, Patric offered a groundbreaking, blunt but powerful piece of advice:  “If you want to build a fucking business, build a fucking business.” This colorful statement was prompted by our discussion on a trap many entrepreneurs fall into when pitching their startups – the “1% of the market” argument. The Problem with the 1% Argument Spencer Greene, who inspired this discussion, points out that saying “if we only get 1% of a $20 billion market, that’s $200 million” adds no new information to your pitch.  It’s a lazy way of estimating market size and potential, and it detracts from your case rather than strengthening it. Patric (as we expected) took this criticism a step further, arguing that this approach often stems from founders making “very lazy assessments” of their market size. He emphasises that an entrepreneur’s job isn’t to tell a narrative, but to build a [F***KING] business. Watch: What Building a Real Business Means Building a real business boils down to three key elements: Selling a product Through a specific channel To a specific customer This framework forces entrepreneurs to be much more precise about their market, their offering, and their go-to-market strategy. It’s about finding a niche where you can truly excel, rather than trying to grab a tiny slice of an enormous pie. The Power of Niche Focus Patric is an advocate for a strategy of intense focus on a specific niche. He explained that in many sectors, particularly in construction and AECS (Architecture, Engineering, Construction, and Supply Chain), there are numerous “highly nuanced but still highly repeatable niches” that reward specificity. By focusing on a narrow niche, entrepreneurs can: Define a differentiated product Identify a specific, repeatable customer Develop an effective channel to reach that customer Contrary to what some inexperienced investors might advise, Patric insists that this approach doesn’t limit your potential market. Instead, it allows you to: Master your niche Potentially capture a large share (even over 50%) of that specific market Use that success as a launching pad to expand into adjacent niches A Real-World Example To illustrate this point, we shared an example from outside the AECS sector.  There is/was a software company in the freelancer space that initially had broad categories on their website, including one for “linguists.” When they dug deeper, they discovered a highly specific niche: speech therapists. By creating tailored landing pages and software features for this niche of 70,000 professionals, they achieved incredible conversion rates and captured 70% of that market. They then replicated this strategy across other niche categories. The Takeaway for Founders The key lesson here is to resist the temptation to pitch your startup based on capturing a tiny percentage of a massive market. Instead: Identify a specific, narrow niche where you can excel Develop a product that addresses the unique needs of that niche Create a targeted channel to reach those specific customers Aim to dominate that niche (50%+ market share is achievable in many AECS niches) Use that success to expand into adjacent niches over time Remember, as Patric puts it, “If you have a business instinct to go after a super specific customer that you can address repeatably and you can conquer a large market share, do exactly that.” By following this approach, you’re not just telling a story or making vague projections. You’re building a real, sustainable business with a clear path to growth and profitability. And that’s what will truly impress investors and set you up for long-term success. Interested in learning more? Check out the full episode with Patric👇👇👇 Listen Now WEEKLY MUSINGSContech Jargon, Data, and Floorplans Beyond the jargon Matt Graves PMP, CCM on LinkedIn Dear Contech Companies, I made this post nearly 2 years ago and every day I’m realizing more and more how painfully true this post was. The more I talk to… | 64 comments on LinkedIn Build on data, not just labor Nici Sundén-Cullberg on LinkedIn: The low hanging fruit = making information available Construction… The low hanging fruit = making information available Construction spending is projected to rise from $13 trillion in 2023 to $22 trillion in 2040. So, the… Floorplans made easy Altaf Ganihar on LinkedIn I’m super excited to share something we’ve just released at Snaptrude! We’ve added these neat and clean 2D floorplans right inside the design canvas. They’re… | 21 comments on LinkedIn RESEARCH Custom Wood & Construction Payroll Solutions Trayd – Construction Payroll and Compliance Trayd is a pioneering construction payroll and compliance platform that aims to revolutionise the payroll process within the construction industry. The platform allows workers to receive their pay 7 to 10 days earlier, addressing the urgent need for improved cash flow in an industry where many workers face financial instability. By modernizing payroll processes, Trayd seeks to create efficiencies that benefit all stakeholders involved in construction projects To get early access to the full reports (coming soon) sign up here. Note, this waitlist will CLOSE at 25 members. Don’t miss out. Join Waitlist Cutr – Wood Manufacturing on Demand Cutr is a digital marketplace that connects designers with wood manufacturing partners to streamline the process of creating custom wood products. Cutr’s network of manufacturers allows the company to handle a wide range of projects, from custom-made furniture to prefab houses, interior projects, and tradeshow booths. The platform’s flexible capacity enables it to provide quick, accurate quotes and help clients grow their businesses To get early access to the full reports (coming soon) sign up here. Note, this waitlist will CLOSE at 25 members. Don’t miss out. Join Waitlist BONUS CONTENTWhat Are Investors Betting On? OUR SPONSORS Shft — helping contractors like you leverage BIM to secure a leading position in the race towards construction’s digital future.  BuildVision — streamlining the construction supply chain with a unified platform for contractors, manufacturers, and stakeholders. Powered by beehiiv