This Q&A is taken from the full podcast episode we recorded with KP.

Q: Can you tell us about your background and how you got involved in construction technology?

A: My dad was a civil engineer, and like any good Indian dad, he took me to work when I was 11 years old. I grew up in the business, and when computers became popular in the mid-80s, my dad bought a PC and told me to figure it out. My first startup was a web-based construction management company in 1997, before everyone else in the industry.

Q: What advice would you give to founders looking for the right co-founder?

A: Finding the right co-founder is like dating. You have to take the time to get to know the person, understand each other’s strengths and weaknesses, and ensure there’s a strong connection. It’s a minimum 10-year relationship, so it’s crucial to be patient and not rush into an emotional attachment without running an analytical process.

Q: Where do founders often go wrong when building a startup?

A: Founders are often patient about the wrong things and impatient about the wrong things. They should focus on validating their ideas and conducting thorough customer discovery before scaling. Founders with industry knowledge sometimes have too much arrogance, thinking they know everything, which can lead to failure.

Q: What is your investment thesis at Shadow Ventures?

A: At Shadow Ventures, we invest in seed-stage startups in the built environment, including construction tech, design technologies, and prop tech. We focus on companies with strong technical defensibility and passionate founders who can get others excited about their vision. We generally write $2 million checks for 10% ownership.

Q: What challenges do robotics startups face in the construction industry?

A: Robotics startups in construction face a talent challenge. Top roboticists often want to work on other projects, so attracting the right talent with a passion for solving construction problems is difficult. Additionally, the capital stack for hardware companies is different, requiring a mix of equity and debt financing to fund inventory and growth.

Q: How do you see AI impacting the venture capital landscape?

A: AI has the potential to enable entrepreneurs to bootstrap their companies more easily, potentially reducing the need for venture capital in certain sectors. With AI tools, founders can build and market their products faster and cheaper, questioning the role of VCs in the process. The right VCs, who understand the technology and are technical themselves, will survive.

Q: What’s your take on profitability for startups?

A: Profitability is not always the primary focus for startups, as long as they can attract investors who believe in their growth strategy. Companies like Amazon and Procore have sustained losses for years while growing, backed by investors who support their vision. However, when investors start demanding profitability, companies must adapt and focus on generating cash flow and dividends.

Q: What excites you about the future of construction technology?

A: The construction industry is ripe for disruption, with a growing need for technology to address labor shortages and increasing demand for housing and infrastructure. There’s so much going on in the space, from robotics to AI, that it’s an exciting time to be involved. As someone with a background in civil engineering and a passion for understanding how things work, I find this intersection of technology and construction incredibly fascinating.