How to Build a Construction Tech Company That Gets Acquired for $600M
"Most software companies either get acquired or go out of business. If you start doing really well, they're either going to copy you or buy you."In today's episode of Bricks and Bytes, we had Geoff Tarrant from Payapps and we got to learn about how a $600 million construction tech exit really happens, why Australian startups must expand globally, and the brutal truth about fundraising timing... and many more!Tune in to find out about:✅ Why construction tech companies never IPO and always get acquired instead✅ The mistake founders make when expanding to new markets too early✅ How to build relationships with potential acquirers years before selling✅ Why raising money too late kills more startups than anything elseGeoff shared incredible insights from building PayApps from a CFO's monthly nightmare into a tens-of-millions revenue business that Autodesk couldn't ignore. His investment banking background gives him a unique perspective on what really drives acquisitions and why timing everything wrong can destroy even great companies.Listen now on Spotify to discover the real playbook for construction tech exits and what founders get dangerously wrong.=============Chapters01:41 – Intro & Acquisition Overview
04:34 – How Claims Are Evolving in Construction
07:41 – Market Dynamics & Competitive Landscape
10:30 – The Role of Independent Players in ConTech
13:45 – Inside the Acquisition: Strategy & Timing
16:49 – What Happens After: Post-Acquisition Integration
19:37 – Winning Customers: Acquisition Strategies That Work
22:31 – Going Global: Expansion & Market Entry
36:58 – Hard Truths: Challenges in New Markets
42:13 – Product-Market Fit: Why It Matters More Than Ever
47:58 – Team Building at Scale
52:55 – Raising Capital & Managing Dilution
01:00:39 – What’s Next: AI & The Future of ConTech
01:03:59 – Where the Opportunities Are: Shifting Construction Markets
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Bricks & Bytes
Building the Google Maps of Underground America - This Ex-Soldier Mapping What's Beneath Our Feet
From clearing landmines to building the "Google Maps of what's beneath the ground" - sometimes the most unexpected backgrounds create the biggest breakthroughs.Most people can't imagine that we don't actually know where underground utilities are buried. Yet there are 169,000 construction projects happening every single day in the US that need this critical information.In today's episode of Bricks and Bytes, we had Itzik from 4M Analytics and we got to learn about turning military explosive detection expertise into construction tech, the tragic consequences when underground mapping fails, and how AI is revolutionizing subsurface data... and many more!Tune in to find out about:✅ How military landmine detection skills translate to finding buried utilities ✅ Why 8% of every construction budget goes to unknown underground risks✅ The business model that maps once but sells the same data forever ✅ From 104 employees to mapping 22 US states in one yearReady to discover how one founder is preventing construction disasters while building a unicorn? Listen now on Spotify.------------Chapters00:00 Intro02:00 From Military to Mapping: The Journey Begins04:56 Building the Google Maps of the Subsurface08:07 Navigating the Challenges of Investment10:49 Understanding the Utility Coordination Landscape13:57 The Pain Points in Construction and Excavation17:01 The Value Proposition of 4M Analytics19:56 The Role of Technology in Mapping Subsurface Utilities23:13 AI and Its Impact on Data Accuracy25:48 The Importance of Timing in Tech Solutions28:56 Innovations in Data Collection and AI Integration41:01 The Future of Construction and AI42:17 Expansion and Focus on the US Market45:36 Navigating Challenges and Learning from Mistakes51:41 Adapting Go-to-Market Strategies57:01 Achieving Product-Market Fit01:02:21 The Role of a CEO in a Growing Company01:10:14 Closing Thoughts and Future Initiatives
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Bricks & Bytes
AI Won't Replace Construction Workers - Here's Why (Former Autodesk Director Explains)
"AI can create decent poetry way before it can deal with engineering work."This blew my mind during our conversation with Francesco Iorio, CEO of Augmenta.The construction industry is facing a massive problem. The gap between what technology can do and how we actually build is bigger than almost any other field.Francesco shared how his team is tackling electrical design automation - one of the most complex problems in construction. They're not just speeding up workflows. They're completely rethinking how buildings get designed.In today's episode of Bricks and Bytes, we had Francesco and we got to learn about why electrical design is so complicated, how AI misconceptions are holding back the industry, and why automation is the only path to sustainable building design... and many more!Tune in to find out about: ✅ Why recreating software like Revit costs over 500 million dollars ✅ How labor shortage is driving construction tech innovation ✅ Why error-free design is still years away but getting closer ✅ How automation will change construction contracts and insuranceListen now on Spotify and join the conversation about the future of construction technology.------------Chapters00:00 Intro02:45 Introduction to Generative Design in AEC07:51 Francesco Iorio's Background and Journey12:33 Identifying the Need for Augmentor17:31 The Evolution of Augmentor's Focus22:41 Challenges in Electrical Design27:39 Augmentor's Current Capabilities and Future Goals33:02 Addressing Labor Shortages in Electrical Design35:23 Funding Journey and Investor Conviction39:05 Sustainability and Automation in Design41:49 Integration Challenges in AEC Solutions45:18 The Quest for Error-Free Design50:33 AI's Role in Generative Design54:46 Customer Engagement and Sales Strategies59:13 Demographics of Early Adopters01:02:49 Future Expansion Beyond Electrical Design
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Bricks & Bytes
"20-Year-Old Software is Killing Architecture" - Legacy Systems & Cloud Solutions from Qonic Founders
"Loading 19 files, each over a gigabyte, into a web browser and manipulating them like butter was the moment I knew I had to join Qonic." - Aaron Perry, former digital design lead at one of UK's largest architecture firms.In today's episode of Bricks and Bytes, we sat down with Mark and Aaron from Qonic to explore how they're revolutionizing AEC software with cloud-native technology that overcomes the limitations of decades-old industry tools.Tune in to find out about: ✅ Why existing AEC software built in the 90s is holding the industry back ✅ How Qonic handles complex construction models that traditional tools can't process ✅ Their innovative "per project size" pricing model instead of per-user licensing ✅ Why contractors adopt new tech faster than architects (hint: it's not about the colors)Listen to the full conversation on Spotify to discover how Qonic is enabling true collaboration across the entire building lifecycle.-----Chapters00:00 Founding Koniq: A New Era in AEC Software03:03 The Future of AEC Software: Insights and Innovations05:58 Challenges in the AEC Industry: Software Limitations08:55 Interoperability and Collaboration: Bridging the Gaps12:00 Koniq's Unique Approach: Transforming Design and Construction14:46 The Role of Koniq in the AEC Landscape17:59 Market Positioning: Koniq's Strategy and Vision20:59 The Future of AEC Tools: Collaboration vs. Monopolization24:01 Koniq's Value Proposition: Cost Efficiency and Innovation27:04 The Impact of AI on AEC Software29:57 Looking Ahead: The Future of Koniq and AEC Software39:00 The Role of AI in Architecture45:02 Modern Architect Needs and Software Solutions52:01 Understanding the Customer Base55:55 Innovative Pricing Models and ROI01:02:02 Bootstrapping and Go-to-Market Strategies
How Starpath Robotics Plans to Mine Space Water From Moon- Is It Even Possible?
Construction robots: From hot dogs to highways?
In this episode of Bricks, Bucks and Bytes, we explored how robotics is changing construction.
We learned about Starpath Robotics' plan to mine water on the Moon for rocket fuel. This could change how we explore space.
We also covered how construction companies are now more open to using robots. This is due to a lack of skilled workers.
Patric and Gabriele shared insights on investing in construction tech startups.
Tune in to find out about:
✅ Why robotics companies should start with specific problems
✅ How construction robots can help with labor shortages
✅ What investors look for in robotics startups
✅ The importance of building a track record in robotics
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Bricks, Buck$ And Bytes
Billion-Dollar Blindspots: Are Construction Tech's 'Best' Lists Building on Quicksand?
Is the construction industry building its future on a foundation of hype? Think again. The latest market maps and "best-of" lists might be leading you astray.
In this episode of Bricks, Bucks and Bytes, we explored McKinsey's updated report projecting a $22 trillion construction market by 2040, alongside the industry's looming labor crisis.
We discussed the expansion of the Bricks and Bytes podcast network, including new shows like "BitBuilders" focusing on robotics in construction.
Patric also shared his critical analysis of "best-of" lists and market maps in construction tech, revealing surprising insights about company success rates.
Tune in to find out:
✅ Why the construction industry is facing its most challenging and high-activity era ever
✅ How robotics might transform on-site construction in unexpected ways
✅ Why well-funded companies often underperform compared to their less publicized counterpart
✅ The importance of looking beyond funding and PR when evaluating construction tech startups
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X/Twitter: https://twitter.com/bricksbytespod
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Company Mentioned:
- McKinsey
Gecko Robotics
Monumental
Mighty Buildings
Nexii
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00:01.08 - 14:00: Introduction and Bricks and Bytes podcast network updates
14:00 - 20:10: McKinsey's updated construction productivity report
20:10 - 29:00: Labor shortage in construction industry
29:00 - 38:00: Potential solutions to labor shortage
38:00 - 44:00: Attracting talent to construction industry
44:00 - 50:30: Patric Hellermann's analysis of "best-of" lists
50:30 - 54:00: Detailed breakdown of study results
54:00 - 57:30: Discussion on implications of the study
57:30: Closing remarks and end of episode
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Bricks, Buck$ And Bytes
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 of Bricks, Bucks and Bytes, 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.
Tune in to find out:
✅ Why focusing on a specific niche can be more powerful than chasing a small slice of a big market
✅ How Opus Flow stands out in the competitive ERP space
✅ Why adding AI isn't always enough to beat established players like Lumion
✅ The importance of profitability in your core business before expanding
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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
-----------------------------
LinkedIn: https://www.linkedin.com/company/bricks-bytes/
X/Twitter: https://twitter.com/bricksbytespod
Youtube: https://www.youtube.com/channel/UCmNbunUTIIQDzbJgGJt9_Zg
Instagram: https://www.instagram.com/bricksbytes/
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Company Mentioned:
- OpusFlow
- Lumion
- Enscape
- Twinmotion
- Inframarket
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Timestamps
00:00 Introduction and Icebreaker
06:32 Navigating the Crowded Market: Opus Flow's Differentiation
10:40 The Challenges of a Red Ocean Market and Margin Compression
13:00 The Importance of Partnerships and Distribution for Opus Flow
21:37 Becoming a Category Leader: Challenges and Opportunities for Opus Flow
24:03 Introduction to the Rendering Industry
26:28 Challenges Faced by Startups
31:20 The Importance of Differentiation and Capturing Entire Workflows
36:12 The Significance of Focusing on Specific Niches
44:46 Building a Profitable Core Business
48:30 The Misconception of Targeting a Small Percentage of a Large Market
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Bricks, Buck$ And Bytes
Why 2D Design Still Beat 3D & The Surprising Impact of AI on Architectural Firms and Pricing
Is the future of architecture in 2D, not 3D? Testfit founder's has got a surprising take…
In this episode of Bricks, Bucks and Bytes, we learned how TestFit grew from a weekend project to raising a Series A, changing how architects do feasibility studies.
We also discovered why small firms might replace big ones like Gensler, as AI changes how architecture works.
Patric shared why "outcome as a service" companies are shaking up the construction tech world.
Tune in to find out:
✅ Why 2D design might still beat 3D and VR
✅ How AI could change the money side of architecture
✅ Why keeping customers matters more than getting new ones in construction tech
✅ The role of VC money in an industry that rarely reinvests in itself
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Company Mentioned:
TestFit
Gensler
Autodesk
Prologis
Katera
Good Eggs
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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
LinkedIn: https://www.linkedin.com/company/bricks-bytes/
X/Twitter: https://twitter.com/bricksbytespod
Youtube: https://www.youtube.com/channel/UCmNbunUTIIQDzbJgGJt9_Zg
Instagram: https://www.instagram.com/bricksbytes/
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Timestamps
00:00 Introduction and Background
09:31 Issues with the Design Stack
18:44 The Importance of 2D Design
23:43 Automation and Problem Solving
26:01 Challenges in the Design Stack
26:53 Building Meaningful Automation in AEC
30:07 The Impact of Narratives in the Venture Industry
33:24 The Future of Architecture and Design in an AI-Driven World
34:21 The Potential Fragmentation of the AEC Industry
41:07 Picking VCs and the Importance of Customer Retention