BBBC 22/03/24 - $31m Dollars, 20x Revenue Growth and Straight Outta Y Combinator - PermitFlow & Furno
Welcome to the Bricks & Bytes Broadcast (BBBC) with Patric Hellermann of Foundamental.
This new format of episode is a weekly dive into the latest construction tech news from the perspective of investors.
From innovations to fundings, market insights, and VC-isms, if you’re building in construction tech, investing in construction tech, or intersecting between the tech and physical world, then we’ll help you keep your finger on the pulse.
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In this conversation, Patric, Martin and Owen discuss two startups: PermitFlow and Furno.
They talk about the challenges faced by PermitFlow in dealing with the slow permit process in the construction industry and the potential for digitizing the planning process.
They also discuss Furno, which offers an alternative to traditional cement plants by providing modular portable kilns that can reduce CO2 emissions.
They explore the funding differences between capital-intensive startups like Furno and digital startups like PermitFlow. Martin also shares his thoughts on time leverage and being more productive.
Takeaways:
Patric's worst investment decision
PermitFlow is a startup that aims to digitize the planning process in the construction industry and streamline the permit process.
Ferno offers modular portable kilns as an alternative to traditional cement plants, with the potential to reduce CO2 emissions by 88%.
Capital-intensive startups like Ferno require significant investment for production, while digital startups like Permit Flow can attract more funding.
Martin emphasizes the importance of time leverage and being productive to maximize efficiency and effectiveness.
Timestamps:
00:00 Introduction and Worst Investment Decision
(01:16) Discussion on PermitFlow
(12:49) PermitFlow's Funding and Capital Requirements
(14:36) Introduction to Furno Materials
(15:54) Investor's Thoughts on Furno Materials
(23:54) Closing Remarks
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Companies Mentioned:
Permitflow - https://www.permitflow.com/
Furno - https://furno.com/
Foundamental - https://foundamental.com/
Y Combinator - https://www.ycombinator.com/
Kleiner Perkins - https://www.kleinerperkins.com/
Felicis - https://www.felicis.com/
Hoffmann Green Cement - https://www.ciments-hoffmann.com/
Aker Solutions Norway - https://www.akersolutions.com/
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Bricks & Bytes
Construction’s £37 Million Augmented Reality - A New Horizon | David Mitchell, CEO at XYZ
Join us for this fascinating episode where we sit down with David Mitchell, the Founder of XYZ – a company revolutionising the construction industry with cutting-edge augmented reality tools. Discover how XYZ's headsets are transforming job sites by bringing real-life 3D models directly to workers, ensuring millimetre accuracy and preventing costly errors.
Listen as David shares his ambitious vision to revolutionise job sites worldwide with AR. Learn how their specialised AR headsets are already preventing costly errors, enabling real-time progress tracking on complex projects, and more.
Key Takeaways:
How XYZ's AR technology is propelling construction to new heights
The importance of building the right team to achieve ambitious goals
The vast potential of AR to transform the construction industry and beyond
And a lot more.
Don't miss this insightful conversation about the future of construction!
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This episode is brought to you by Shft—helping contractors like you leverage BIM to secure a leading position in the race towards construction’s digital future.
Visit: https://maketheshft.digital
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BuildVision is a procurement network for the $5T commercial construction market. We are transforming the commercial construction supply chain by bringing contractors, manufacturers, and project stakeholders onto a single software platform—revolutionizing how every component is sourced, purchased, and financed.
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(00:00:00 - 00:02:27) - Intro To David & Our Sponsors
(00:02:57 - 00:10:42) - About David's Journey Into XYZ Reality
(00:10:42 - 00:35:48) - Understanding XYZ Reality
(00:35:48 - 00:44:03) - How David Manages Everything
(00:44:03 - 00:50:14) - 360 Reality Capture vs XYZ Reality
(00:50:14 - 00:56:30) - Future Plans of XYZ In Terms Of The Data They're Capturing
(00:56:30 - 01:12:44) - David's Experience Of Raising Money From VCs
(01:12:44 - 01:13:39) - Outro
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Bricks & Bytes
Sold for $500m - Scott Wolfe's Epic Story With Levelset
Note: This is a re-release of an episode that was originally published at Groundbreakers. "I sued the bar association because they tried to restrict blogging. Content was just the way I saw the world." - This mindset led to a $500M exit.In today's episode of Groundbreakers from Bricks and Bytes, we had Scott Wolfe, founder of Levelset, share the remarkable journey of building and selling his construction payment software company to Procore. From a law practice dealing with post-Katrina restoration work to pioneering construction tech - Scott's story is filled with invaluable insights.Tune in to discover:✅ How helping contractors with payment problems evolved into a $500M exit ✅ Why Scott took the lowest valuation term sheet and spent 16-36 months building relationships with investors before taking their money ✅ The power of "Help First" in content marketing - how Levelset generated thousands of leads by focusing on solving problems ✅ Why Scott believes companies aren't sold, they're bought - and what that means for founders planning exitsListen to the full episode on Spotify to learn how Scott turned construction payment headaches into a category-defining company that changed an industry.
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Bricks & Bytes
The Tool That Makes Carbon Transparency a Reality: Tangible's Solution for Sustainability
Did you know that building materials account for 11% of all greenhouse gas emissions globally? It's a huge number, and that's why Tangible exists!
Recently, we were invited to the BOOST cohort from Suffolk Technologies where we had a chance to interview Anneli, co-founder and CEO of Tangible, and we got to learn about how they're helping real estate developers measure and reduce embodied carbon, and much more!
Tune in to find out about:
How Tangible measures embodied carbon using BIM files, making it easy for developers to see their impact.
Why legislation, corporate demand, and investor pressure are driving the need for carbon transparency.
How Tangible is helping to reduce the impact of concrete, a major source of emissions.
How data is used to drive better decisions in material selection and building design.
$32M Series B: How Stratus is Revolutionizing MEP Workflows
"300 billion dollars for AI infrastructure in the next few years - but who will design and build it all?" - A thought-provoking insight from our latest conversation about the massive construction needs for AI's future.
In today's episode of Bricks, Bucks and Bytes, we learned about Stratus raising $32M Series B to revolutionize MEP contractors' digital workflows.
We explored how tech giants Microsoft, Amazon, and Google are planning to spend $300B on AI infrastructure construction, creating massive opportunities in the data center space.
Through Patric Hellermann's investor lens, we discovered why focusing on core infrastructure and authoring tools might be smarter than chasing AI-first solutions.
Tune in to find out about:
✅ How Stratus is transforming MEP contractor workflows from design to fabrication
✅ The emerging opportunities in data center construction and infrastructure
✅ Why owning authoring tools beats single-point AI features
✅ The strategic advantage of avoiding overcrowded AI-first solutions
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Chapters
00:00 Introduction to Stratus and AI in Construction
05:44 Understanding Stratus: MEP Workflows and Digital Solutions
11:21 The Role of AI in Design and Construction
17:00 The Future of Engineering: Human Touch vs. AI
24:01 Emerging Companies and Innovations in Construction Tech
24:35 Automation in Engineering Workflows
25:50 Massive Investments in AI Infrastructure
27:52 Emerging Startups in AI Data Centers
31:40 The Role of AI in Construction
35:00 Navigating the AI Gold Rush
37:33 The Inefficiency of Venture Capital Allocation
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Bricks, Buck$ And Bytes
The Truth About 3D Printed Homes: A Deep Dive Into ICON's $450M Technology
Is 3D printing concrete homes worth the $450M investment?
In today's episode of Bricks, Bucks and Bytes, we got to learn that despite being a $2B company, ICON's 3D printed homes only show a tiny 0.5% carbon advantage over regular timber construction.
We also explored why Q4 2024 was special for construction tech - it grabbed nearly 1% of all VC funding, the second-highest share ever. Even more impressive given that 2024 saw the lowest overall VC funding since 2014.
The most striking insight came from questioning the basics - why use concrete, a material best for large-scale projects, to print single-family homes?
Tune in to find out about:
✅ What's driving Asia-Pacific's growing lead in construction tech funding
✅ Why 3D printed concrete homes struggle in wet climates
✅ Which parts of construction tech are actually getting funded
✅ How early-stage funding stayed strong while growth rounds dropped
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Chapters
00:00 Introduction and Technical Glitches
01:03 Recent News: ICON's Layoffs and Valuation
02:49 Exploring 3D Concrete Printing Technology
05:49 Sustainability Concerns in Concrete Printing
08:59 Comparative Analysis: Concrete vs. Timber Homes
12:04 Challenges in 3D Concrete Printing
14:56 Automation and Efficiency in Home Construction
18:09 Future of 3D Concrete Printing Technology
21:54 Challenges in 3D Concrete Printing
22:56 Market Fit for 3D Concrete Homes
24:04 Impact of Staff Reductions on Valuation
25:47 Understanding Company Valuations and Experiments
27:07 Applications of 3D Printing in Housing
29:02 First Principles of Cost in Construction
30:58 Trends in AEC Tech Funding
39:10 Market Dynamics and Future Predictions
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Bricks, Buck$ And Bytes
Building a €450M Construction Tech Giant: How Philip Schröder's Marketing Built Germany's Latest Energy Tech Giant
"Your margin is my opportunity... unless you're selling outcomes in construction tech!"
In today's episode of Bricks, Bucks and Bytes, we explored 1KOMMA5°'s impressive €150M pre-IPO round and their unique approach of acquiring 30+ companies since 2021 to scale their energy tech business.
We also learned about an intriguing debate around whether companies can call themselves "market leaders" in Germany, sparked by a court case between 1KOMMA5° and their competitor.
The most fascinating insight came from Patric's take on fixed vs. variable costs in construction tech: Companies that produce with fixed costs but sell outcomes (variable costs) have a unique opportunity to build generational businesses in construction - but this window might only last 10 years.
Tune in to learn about:
✅ Why 1KOMMA5°'s founder Philip Schröder's marketing genius is their secret sauce
✅ How selling outcomes beats traditional SaaS pricing in construction
✅ Why converting variable costs to fixed costs through automation is game-changing
✅ An innovative structural engineering firm reducing design time by 90%
Sign up to the #1 Newsletter In Construction Tech. Join over 1,000 like-minded Founders, Investors and Techies disrupting the way we build. Forever : https://bricks-bytes.beehiiv.com/subscribe
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Chapters
00:00 Intro
01:56 Diving into One Comma Five
06:01 Understanding the Solar PV Market
11:59 Investment Insights and Market Valuation
18:03 The Role of Technology in Energy Solutions
24:02 Marketing Strategies and Competitive Landscape
30:12 Future Challenges and Business Models
31:07 The Evolution of Energy Training
32:29 Understanding Fixed vs. Variable Costs
37:38 The Impact of SaaS on Construction
43:34 Exploring IPOs and Market Trends
49:45 Emerging Trends in Construction Technology Sales
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Bricks, Buck$ And Bytes
Building a $1.6B Construction Tech Company in Australia - Lessons on Distribution vs Product
"The construction tech founders obsess over product, but distribution might matter more."
In today's episode, we discussed about VisiBuild securing a $6.6M round from Skip Capital to improve construction quality checks - going beyond just turning paper into apps.
We also discovered why Australian construction tech punches above its weight, with just two companies (Aconex and Safety Culture) putting the country third globally in unicorns.
Most valuable was Shubhankar's take on why typical SaaS metrics might not tell the whole story in construction tech's early stages.
Tune in to learn:
✅ Why the "build it and they will come" approach fails in construction
✅ How Australian founders turn their small market size into a global advantage
✅ What makes construction tech distribution different from regular SaaS
✅ Why community building matters as much as features
Listen to the full episode on Spotify to hear practical insights for anyone building or investing in construction tech.
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Chapters
00:00 The Importance of Distribution in AEC Tech
03:05 Execution Moat: The Key to Success
05:59 Navigating Distribution Challenges in Construction Tech
09:08 Market Dynamics: Distribution Strategies for Different ARR Levels
12:04 Global Perspectives: Indian Founders Targeting the US Market
14:49 Comparative Approaches: US vs. Indian Founders in Distribution
18:08 Community Building: A Strategy for Distribution Success
21:00 The State of SaaS in Indian Construction Tech
24:12 VisiBuild: A Case Study in Construction Tech Investment
33:14 Exploring Visibild's Impact in Construction Tech
36:09 The Evolution of Quality Checks in Construction
40:05 Unicorns in Construction Tech: Australia’s Rising Stars
42:58 The Unique Landscape of Australian Startups
47:59 Challenges and Opportunities for Australian Founders
52:57 Assessing Product-Market Fit in Construction Tech