Author name: Owen Drury

This Week’s Quickfire BytesFuel your curiosity with this week’s contentW/C 3rd July 2024 NEW EPISODES: New Podcasts, Robotic Innovations, and Modular Mistakes – June Monthly Roundup In this month’s Bricks & Bytes roundup, We discuss the latest trends and insights from the episodes we released in June. We discussed how Altaf’s persistence led SnapTrude to success after 8 rejections and why Shubhankar sees huge potential in India’s efficient startups and much more! We also shared about the future plans we have with Bricks and Bytes! open.spotify.com/episode/1hlXTrG8A4Dh2DVApaWVY7 Why 70% Of Investors Have A Negative Impact On Your Startup And The Future Of Energy Assessments Is remote sales killing your construction tech startup? One founder learned it the hard way. By listening to an investor who had no idea. In this episode of Bricks, Bucks and Bytes, we got to learn about Kelvin, a French startup using AI for home energy audits, which just raised 4.7 million euros. We explored Turner & Townsend’s latest construction cost survey, revealing cooling inflation across the sector. Also, we delved into Vinod Khosla’s controversial take that 90% of VCs add no value, with Patrick offering his candid perspective. open.spotify.com/episode/08PtOPF5qbkgi3KY7ktyfG BONUS – How India’s FIRST Unicorn in Construction was Created – InfraMarket – with Shubhankar Bhattacharya From delivering concrete in Mumbai to becoming India’s second-largest concrete supplier – how did InfraMarket do it? In this episode, we had Shubh from Foundamental, an early investor in InfraMarket, and we got to learn about the unique challenges of the Indian market, InfraMarket’s innovative acquisition strategy, and their journey to becoming a construction tech unicorn. open.spotify.com/episode/6D5dsSJTIVzQvZN8Hex36J Why SaaS Is Dying & How Procurement Is Changing, Reality-Check On AI in Construction – Mike Powers Are SaaS pricing models doomed in construction tech? Mike Powers thinks so. In this episode, we had Mike Powers, founder of BuildVision, and we got to learn about his contrarian take on SaaS pricing in construction, the challenges of selling to the industry, and his vision for revolutionizing procurement in mechanical and electrical equipment… and many more! View All Podcasts BRICKS & BYTES BULLETIN: 5 Principles for Building a Successful Retrofitting Company – From Two Leading Investors Retrofitting is reshaping the built environment. It’s not just about upgrading old buildings; it’s a crucial step towards a sustainable future. With its massive potential market size, retrofitting is attracting significant attention from investors and innovators alike. In the UK, around 30 million houses need upgrading. And in Germany, it’s a similar number with around 24 million houses. We were fortunate to sit down with two investors (Foundamental and A/O [now noa]) and see what retrofitting means for investors and startups alike. Read Full Article 2 FAVORITE QUOTES: “In developed economies like Europe or the US, about 90% of the buildings that will be here in 2050 are already built. So there’s a lot of work, there’s a lot of retrofitting to do.” – Gregory Dewerpe, Inside the Mind of Europe’s Largest VC Founder “What you want through these energy retrofit one-stop shops is to get to what we call self-identified demand, meaning the demand comes to you and because they have done the energy audit, because they have triggered the energy audit, they have self-identified to have a purchase readiness.” – Patric Hellerman, BBBC 13/04 – Europe’s Hottest Startup, Retrofitting, PR Best Practice & Nonsense LATEST STORIES: The Story Of Altaf Ganihar – Founder & CEO, Snaptrude – Bricks and Bytes In the conservative world of architecture and construction, where traditions run deep and change comes at a glacial pace, Altaf Ganihar emerges as an unlikely bricks-bytes.com/the-story-of-altaf-ganihar-founder-ceo-snaptrude From Construction Site to Cutting-Edge Startup: The Journey of David Mitchell and XYZ Reality – Bricks and Bytes Growing up on construction sites in the west of Ireland, David Mitchell learned to walk on building sites alongside his father. Even from a young age, he bricks-bytes.com/from-construction-site-to-cutting-edge-startup-the-journey-of-david-mitchell-and-xyz-reality Robots on Demand: The Game-Changing Impact of RaaS on Construction – Bricks and Bytes In recent years, the construction industry has been undergoing a significant transformation, with robotics playing an increasingly important role in improving efficiency, reducing costs, and enhancing safety on job sites. bricks-bytes.com/robots-on-demand-the-game-changing-impact-of-raas-on-construction 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 INSIGHTS Smart Upgrades: Retrofitting for the 21st Century Retrofitting is reshaping the built environment. It’s not just about upgrading old buildings; it’s a crucial step towards a sustainable future. With its massive potential market size, retrofitting is attracting significant attention from investors and innovators alike. In the UK, around 30 million houses need upgrading. And in Germany, it’s a similar number with around 24 million houses. We were fortunate to sit down with two investors (Foundamental and A/O [now noa]) and see what retrofitting means for investors and startups alike.   Why Retrofitting Matters Climate goals and energy efficiency drive the push for retrofitting. But there’s more to it. Regulatory pressures from the EU and national governments are increasing. Economic factors play a role too. Energy price volatility and the risk of stranded assets make retrofitting a smart financial move. Customer demand is another key driver. Large corporations are making net-zero pledges, affecting their real estate choices. Tenants, too, are showing a preference for sustainable buildings. Gregory Dewerpe explains: “In developed economies like Europe or the US, about 90% of the buildings that will be here in 2050 are already built. So there’s a lot of work, there’s a lot of retrofitting to do.”   Tech Innovations in Retrofitting The huge demand for retrofitting across Europe has resulted in an influx of capital to tackle the space. But what are investors looking for when considering investing in retrofitting startups? Let’s explore:   Platformisation: This involves creating platforms that enable people to go through the retrofitting process smoothly, like Enter. These platforms provide a one-stop shop experience, connecting homeowners with installers, financing options, subsidies, etc. Platform solutions like Enter offer comprehensive retrofitting services. VARM focuses on specialised insulation solutions. These platforms streamline the complex retrofitting process.   New Technologies:  Investors also look at specific new technologies that will be part of the retrofitting toolbox, such as new types of heat pumps, materials and hardware. But the magic happens when you can intersect the new technologies using both software and hardware. Two companies tackling this are PassiveLogic and Span.   Labor upskilling Another consideration is using technology to enable labor upskilling and tap into a lower-skilled workforce to meet the demand for retrofitting services (solar, heat pumps, insulation, etc.). There is a huge labour shortage industry-wide. This shortage is a major bottleneck for scaling retrofitting efforts. Technology that helps to upskill, expand the pool of workers, and increase productivity is a key consideration when looking to tackle retrofits.   How To Build A Winning Retrofitting Company Below are a few of A/O’s and Foundamental’s hot-takes on what breeds a successful retrofitting startup: Operational excellence and focus Physical substance data Self-identified demand Expanding Services Long-term vision   Operational Excellence and Focus Operational excellence and focus are crucial for success in the retrofitting industry. Patric emphasizes the importance of “operational excellency, capital efficiency, focus, keeping your customer acquisition costs under great control,” while Greg stresses that companies should “compete because you are just the best at what you do operationally.” Both highlight the need to provide superior customer experiences and maintain strong margins. “I would say operational excellency, capital efficiency, focus, keeping your customer acquisition costs under great control, thinking about how to become a platform rather than a one-dimensional kind of tool that people could use.”   Physical Substance Data A key aspect of this excellence is leveraging physical substance data, which Patric describes as “what a good energy retrofit startup does.” This data provides detailed information about buildings’ physical properties, enabling companies to offer tailored, effective solutions. By utilizing this data, companies can position themselves as credible arbitrators, offering unbiased advice on the most effective retrofitting measures.   Self Identified Demand Self-identified demand is another critical factor, with Patric noting the importance of creating “self-identified demand, meaning the demand comes to you and because they have done the energy audit, because they have triggered the energy audit, they have self-identified to have a purchase readiness.” This approach allows companies to reduce customer acquisition costs and build trust with clients. “What you want through these energy retrofit one-stop shops is to get to what we call self-identified demand, meaning the demand comes to you and because they have done the energy audit, because they have triggered the energy audit, they have self-identified to have a purchase readiness.”   Expanding Services As trust grows, companies can expand their services. Patric suggests that “because you have the trust of the building owner, you can arbitrate all of those [additional services], which gives access to a vast market.” These expanded services can include financing, subsidies, insurance, and utility tariffs.   Long Term Vision Finally, both experts emphasise the importance of a long-term vision. Greg notes that retrofitting “is not going to get solved in a week or in a year or in five years. It’s a multi-decade process.” This long-term perspective allows companies to build category-defining businesses and adapt to the evolving needs of the market. “What we like is it’s not going to get solved in a week or in a year or in five years. It’s a multi-decade process. So you have the ability to really project yourself in building a category, defining business over the long term. This is not a fad.”   The Future Of Retrofitting The future looks bright for retrofitting. Market growth potential is enormous. We’re likely to see greater integration with smart building technologies. Retrofitting will play a crucial role in achieving global climate goals. There’s ample room for innovation in materials, processes, and business models. Interested in learning more? Check out the full episode with Gregory Dewerpe  Listen Now Check out the full episode with Patric Hellermann👇 Listen Now    WEEKLY MUSINGSAI, TikTok, and Contech ROI Let’s hear it from the real ones Nick H. on LinkedIn: #parking #restoration #aec | 85 comments How are AEC people actually using AI? Yes, every guru will tell you that you can transform your business using it…but many (not

Announcing – Bricks, Buck$ & Bytes On Friday 21st June, we released episode number 1 of our new format with Patric Hellermann. In these episodes, we dive into: Funding News Market News Investor’s Hot Takes Follow us on Spotify to keep up to date with the latest AECS tech news. Subscribe   INDUSTRY INSIGHTSHow Is Innovation Implemented? When 7 new software solutions land on your desk EACH DAY, you need a way to decide which tools are best. Cue the innovation framework of $2bn Rogers O’brien – OPTIMA. The OPTIMA framework is a step-by-step approach that guides organisations through the process of setting objectives, aligning people, defining targeted outcomes, integrating processes, selecting modern tools, and accurately measuring progress. “The OPTIMA framework prevents you from falling in love with the tools or the process. What you’re in love with is the objective. What are we trying to achieve?”   OPTIMA – A Step By Step Guide The first step in the OPTIMA framework is defining a clear objective. This means focusing on the specific problem you’re trying to solve and aligning it with your company’s overall strategy. “It’s so important to obsess around your problems as a company,” Wynne emphasises. “That’s why you can filter all that noise of all these startups and point solutions.” Once the objective is set, the next step is identifying the right people to lead the initiative. “You have to have that investment in time around the people that are gonna solve the objective,” Wynne advises. Empowering these individuals with the necessary resources and focus is crucial to their success. The third step is defining targeted outcomes – clear, measurable key results that indicate progress towards the objective. Wynne stresses the importance of having the team align around what “winning” looks like. “Lock yourself in a room with a whiteboard and paint the canvas of what done looks like,” he suggests. The next steps in the OPTIMA framework are integrating processes and selecting modern tools. It’s important to choose processes and tools that support the objective and align with the company’s existing tech stack and data strategy. However, Wynne cautions against relying solely on tools: “The tool isn’t the challenge. The process isn’t the challenge. Getting people to change their habits is the challenge.” The final step is accurate measurement – regularly gauging progress against the targeted outcomes and using those measurements as a feedback loop. If sufficient progress isn’t being made, organizations should be willing to revisit and adjust their approach. Throughout the process, Wynne advises companies to stay focused on the core problem they’re trying to solve. “Don’t fall in love with specific solutions,” he warns. “Obsess over your problems more than solutions.” Another key insight from Wynne is the importance of shaping people’s environment to encourage them to embrace change. “You can’t change people,” he explains. “But you can change something. You can change their environment.”   Selling To Innovation Departments With this knowledge, how should one approach selling into companies like RO? We dissected the OPTIMA and came up with the following points? Focus on solving specific problems: Instead of simply pitching your product, identify the key problems that Rogers O’Brien is looking to solve and demonstrate how your solution addresses those challenges effectively. Align with their data strategy: Ensure that your product can integrate seamlessly with Rogers O’Brien’s existing tech stack and data strategy. Wynne emphasizes the importance of easy data accessibility and manipulation. Provide a clear path to value: Show how your solution can help Rogers O’Brien achieve their objectives faster or more efficiently. Quantify the potential time and cost savings or other benefits they can expect. Offer change management support: Recognize that implementing new technology involves disrupting existing processes and habits. Be prepared to support Rogers O’Brien in driving adoption and helping their people adapt to the change. Build a strong understanding of their business: Demonstrate a deep knowledge of the construction industry and the specific challenges faced by companies like Rogers O’Brien. This will help build trust and credibility. Highlight your technology’s scalability: Ensure that your product is built on a solid, scalable foundation that can accommodate future growth and evolving needs. Be transparent about your technology roadmap and plans for managing technical debt. Foster a partnership mindset: Approach the relationship as a collaborative partnership rather than a one-time sale. Show a willingness to listen, learn, and adapt your solution to best fit Rogers O’Brien’s needs Interested in learning more? Check out the full episode with Todd Wynne 👇 Listen Now   WEEKLY MUSINGSThe VC Hype, Real-world Know-how, and Rising Stars 90% of VCs add no value… Navigating the VC Landscape⎟How to Choose the Right Investor for Your (Constru-Tech) Startup This week on Practical Nerds – tl;dr 90% of VCs add no value, and 70% actively harm your business Eliminate VCs that stand in your way, avoid harmful advice, and don’t over-prioritize value-add Getting the above sequence right is critical; starting with value-add in your prioritization process can l www.linkedin.com/pulse/navigating-vc-landscapehow-choose-right-investor-your-hellermann-vatge/?trackingId=kumXsvE5TEhrWO35ms8w%2Bg%3D%3D Experience, not just tech bros I think this is a big reason why construction tech is far behind other industries. Very tough for a Silicon Valley developer to tackle our problems. They just don’t have the experience in the field. — Todd Hesnor (@hez22273) Jun 23, 2024 ConTech’s rising stars Last Week in ConTech on LinkedIn: Who are the latest ConTech startups making waves in funding? 🚀 Field… Who are the latest ConTech startups making waves in funding? 🚀 Field Materials, a California startup, raised $3.5M. The company provides an AI platform for… www.linkedin.com/posts/last-week-in-contech_who-are-the-latest-contech-startups-making-activity-7206899466212188162-nh5a?utm_source=share&utm_medium=member_desktop   RESEARCH Construction Cost Data and Cost Estimating 1build – API For Live Construction Data 1build is a leading provider of construction cost data and estimation tools. They offer a comprehensive data platform that gives users access to real-time pricing information on over 68 million construction materials, labor, and equipment costs across the United States 1build’s proprietary API integrates with construction software platforms, enabling contractors and homeowners to access accurate, up-to-date cost data