Most Startups Die at $5M ARR - Breaking the $10M Barrier in Construction Tech
"The best renewal is no renewal. So closing a three-year agreement, right?"In today's episode of our Go To Market Series from the Bricks & Bytes Podcast, we have Kevin Halter (CRO of OpenSpace) share his journey from scaling PlanGrid from $5M to $100M+ ARR and building high-performing sales teams in construction tech.Tune in to find out about:✅ Why construction tech requires a unique go-to-market approach focused on project-level ROI✅ How to transition from project-level sales to enterprise agreements (the key to breaking the $10M ARR ceiling)✅ What to look for when hiring sales talent ("fire in the belly")✅ When founders should hire their first VP of Sales vs CROWhether you're a founder struggling with the 5-10M ARR plateau or a sales leader in construction tech, this episode delivers practical insights on building scalable go-to-market motions in an industry where "it's easy to start a pilot, but hard to scale."
06:30 Introduction to Construction Tech Journey09:30 Scaling from 5M to 100M ARR12:31 Understanding Project-Level Value15:22 Building Trust and Transparency in Construction18:28 Transitioning to Enterprise-Level Sales21:28 The Importance of Customer Success Management24:28 Hiring the Right Sales Team27:29 Effective Communication with Executives30:24 Building Long-Term Partnerships33:31 Creating a Scalable Sales Model44:47 Building Long-Term Partnerships (appears to be repeated)48:30 Lessons from Biotech for Construction Tech53:17 Hiring and Scaling Sales Team57:57 Developing Talent and Leadership1:07:31 Choosing the Right Company to Join1:14:53 When to Hire a Chief Revenue Officer
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Bricks & Bytes
Construction Tech Marketing is Broken - Industry Skepticism Problem & Proven Go-to-Market from Ex-director of Marketing at 4M Analytics
"We're in an industry that loves ROI calculators... but the industry has built some sort of skepticism to these ROI calculators."This reality check from David Horesh hit different.In today's episode of Bricks and Bytes, we had David Horesh and we got to learn about why construction marketing is still a blue ocean, how to avoid the handshake trap, and why memes might be your secret weapon... and many more!Tune in to find out about:✅ Why understanding construction jargon is make-or-break for tech marketers✅ The leaky bucket problem killing your sales funnel✅ How AI agents can replace entire marketing teams✅ Why construction professionals want memes with their morning coffeeDavid spent 7 years helping construction tech companies go from zero to serious ARR. His insights on digital marketing in a traditional industry will change how you think about go-to-market.Listen now on Spotify and discover what most construction tech founders get wrong about marketing.----------Chapters00:00 Intro01:52 Introduction to David Horesh and His Journey04:50 Understanding Go-To-Market Strategies07:52 The Importance of Knowing Your Customer10:52 Defining Go-To-Market Team Structures13:50 Navigating Change in the Construction Industry16:54 Building Relationships and Network Effects19:43 The Role of ROI in Marketing Strategies22:54 Marketing Channels in Construction26:00 Leveraging Digital Marketing in Construction28:42 Creating Engaging Content for the Industry38:22 Building Relationships in Marketing40:37 From Traffic to Sales: The Conversion Process43:27 The Importance of Awareness and Trust48:52 Understanding the Marketing Funnel55:58 Recruiting the Right Marketing Talent01:01:51 Leveraging AI in Marketing01:04:51 Measuring Marketing Success
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Bricks & Bytes
3-4X BETTER ROI THAN HEAT PUMPS - VARM's Mission to Insulate 1 Million Homes by 2033
"Insulation has a 3-4x better ROI than heat pumps and 10x better than solar systems. Most people get this wrong when retrofitting their homes."In today's episode of the podcast, we had Chris from VARM, who shared his journey of building a VC-backed installation business aimed at becoming the European champion in the space.Tune in to find out about:✅ How VARM is building a "cloud installer network" - a franchise model on steroids✅ Why Chris pivoted from longevity e-commerce to climate tech after successfully exiting his first business✅ The surprising fundraising reality: "VCs and markets and investments are very often done based on FOMO"✅ Their ambitious mission to insulate 1 million houses over 10 yearsListen to the full episode on Spotify to learn how VARM is revolutionizing the insulation industry with their innovative business model and scaling strategy.-----Chapters00:00 Intro06:20 The Journey to Vaughan: Chris's Background09:19 From Management Consulting to Entrepreneurship12:17 Building a Sustainable Business: The Vision for Varm15:19 Why Insulation? The Case for Energy Efficiency18:24 Blown-In Insulation: A Smart Choice21:20 The Business Model: Cloud Installer Network24:08 Empowering Installers: The Business in a Box27:25 Growth Strategy and Customer Acquisition36:04 Community Engagement and Education39:26 Content Marketing Strategies40:59 Learning Through Experience43:12 The Cloud Installer Model45:52 Investor Relations and Fundraising47:38 Resource Allocation and Growth48:45 Understanding Competition51:09 Creating Win-Win Situations52:24 Market Expansion Plans55:55 Defining Success Metrics57:40 Cultural Fit in Hiring1:04:25 Advice for Founders in Physical Industries
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Bricks & Bytes
Construction Scheduling Is Dead - Broken Scheduling Systems & Modern AI Solutions from $600M Firm
"Construction scheduling is completely broken. We're still using PDF files and sticky notes to manage million-dollar projects."In today's episode of Bricks & Bytes, we had Patrick Hennessy from Harkins Builders and we got to learn about why traditional project management tools are failing the construction industry, how AI could revolutionize daily site operations, and the brutal truth about construction tech pricing... and many more!Patrick runs planning and analytics for a $600M general contractor and shares unfiltered insights from the trenches of construction technology adoption.Tune in to find out about:✅ Why Primavera P6 and traditional scheduling software creates more problems than it solves✅ How AI daily briefs could replace morning huddles and transform job site management✅ The real reason construction software pricing is getting out of control and what contractors should demand✅ Why construction tech websites are completely useless and how startups are losing millions in delayed sales cyclesListen now on Spotify and get the inside perspective on where construction technology is actually heading from someone who evaluates and implements it every day.----------Chapters
00:00 March Madness and Personal Reflections01:15 Understanding Project Controls at Harkins Builders04:06 The Role of Technology in Project Management09:17 Harkins Builders: Company Size and Structure11:36 Innovation in Construction: VDC vs. Project Controls13:01 Evaluating Scheduling Software: The Future of Collaboration16:06 Traditional vs. Modern Scheduling Practices20:14 Data Collection and Its Impact on Scheduling25:28 Accelerating Tech Adoption in Construction29:32 The Quest for Comprehensive Software Solutions33:29 The Importance of Clear Messaging in Construction Tech37:16 Navigating Cold Outreach and Sales Tactics41:15 The Challenge of Point Solutions vs. Comprehensive Platforms44:46 Understanding Pricing Models in Construction Software55:32 The Impact of AI on Construction Processes
New Scheduling Tools, US Startups High Failure Rate, & How Supply-Side Focus is Reshaping Tech Companies
Is the traditional construction scheduling software about to become obsolete?
In this episode of Bricks, Bucks and Bytes, we discussed Planera's fresh take on construction scheduling, which just secured $13.5M in Series A funding.
We also explored the surprising uptick in US startup failures and what it reveals about the current market.
Additionally, we delved into the potential shift from demand-focused to supply-focused business models in tech.
Tune in to discover:
✅ How Planera aims to simplify complex construction scheduling
✅ Why more startups are failing, but it might not be all bad news
✅ The rising importance of vertical integration in tech companies
✅ How emerging markets are driving innovation in B2B platforms
Want to stay ahead in construction tech and startup trends? Listen now on Spotify.
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Company Mentioned:
Planera
Oracle (specifically their Primavera P6 software)
OpenAI
Microsoft
Uber
Meta (formerly Facebook)
SpaceX
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Timestamps:
02:12 Planera: Innovating Construction Scheduling and Planning
06:42 The Challenges of Traditional Scheduling Tools in Construction 0
9:01 The High Failure Rate of Startups: A Natural Evolution
24:07 The Role of AI in Startups and the Construction Industry
30:01 The Shift towards Collaborative and Visual Solutions in Construction
31:15 The Dominance of the US Startup Market
32:39 The High Failure Rate in US Startups
33:54 Profitability of European Venture Funds
41:30 The Shift Towards Vertical Integration and B2B Marketplaces
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Bricks, Buck$ And Bytes
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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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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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:
- 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
-----------------------------
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