Building Mercator: From 90 Investor Pitches in 3 Weeks to Changing How Contractors Find Projects
"Pre-construction is actually just free construction because it's a lot of work up front that you don't often get paid for." - Chloe Smith, CEO of Mercator
In today's episode of Bricks and Bytes, we sat down with Chloe Smith, who shared her journey of building Mercator, a construction tech startup that's changing how contractors find early-stage project opportunities.
Tune in to discover:
✅ Why Mercator focuses only on Texas (for now) and how they plan to expand
✅ The power of hiring for talent over skill in a fast-growing startup
✅ How they built their own "accelerator" by carefully selecting operator-investors
✅ Their unique approach to product development through an intensive beta program with general contractors
Listen to the full episode on Spotify to learn how Mercator is helping contractors get involved in projects before the bidding phase even begins - as Chloe puts it, "It's almost like using a marriage registry as a dating app."
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00:00 Intro
02:43 Introduction to Chloe Smith and Mercator
05:45 The Journey into Construction and Data Strategy
08:40 Understanding Mercator's Functionality
11:46 Data Sources and Technology Behind Mercator
14:50 The Role of Large Language Models
17:34 Target Customers and Market Focus
20:41 Project Detail Pages and User Experience
23:45 Data Visibility and Insights
26:29 Utilizing Construction Data for Industry Reports
29:50 Expansion from Canada to the US
32:48 Revenue Model and Future Growth
36:46 Understanding Product-Market Fit
38:57 The Fundraising Journey
45:07 Building a Strong Investor Network
51:44 Evolving Go-To-Market Strategies
1:02:43 Hiring for Talent vs. Skill
1:04:43 Defensibility in the Age of AI
1:05:20 Choosing the Right Mentors
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Bricks & Bytes
What We Learned After a Year of Talking to Construction Tech's Biggest Names - November Monthly Review
"Follow the money to grow, follow your passion to build. While US construction tech startups have raised $30B, India's $1B investment is yielding better returns."
In today's episode of Bricks & Bytes, we did our November Monthly Review where we reflected on an action-packed month of content creation and exciting future plans.
We even explored fascinating market dynamics, founder insights, and geographic opportunities in construction tech.
Tune in to find out about:
✅ Our successful launch of the AI in Construction Report and first steps into monetization
✅ Highlights from our Boston trip interviewing startups at Suffolk's boost cohort
✅ Behind the scenes of the upcoming Ediphi super series releasing in January
✅ Plans for New York and San Francisco tour in 2025, plus a potential India expansion
Listen to the full episode on Spotify to hear Owen, Martin, and Patric discuss their key takeaways from November, upcoming content plans, and Patric’s take on why founders often over-obsess with product and under-obsess with distribution.
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Chapters
00:00 End of Year Reflections
03:01 Cultural Differences in Business Mindset
05:50 The Impact of Travel on Business
08:47 Exploring AI in Construction
12:11 The Role of Community in Innovation
14:55 Challenges in Design and Construction Software
17:52 The Disconnect Between Traditional and Startup Worlds
21:00 The Influence of Trust in Business Relationships
24:07 Venture Capitalists in Government
26:59 The Future of Governance and Innovation
32:48 Understanding Argentina's Political Landscape
35:09 The Importance of Product Distribution
40:40 Marketing Challenges in Construction Tech
43:47 Trends in AEC Technology
44:29 Talent Acquisition in the AEC Sector
46:03 Investment Trends in Construction Tech
50:34 Cultural Insights: Christmas Traditions
57:33 Closing Thoughts and Future Plans
It's great to watch how Alrik and ONX Homes are innovating within the logistics (Alrik) and prefabricated home building (ONX Homes).
In this episode, we sat with Patric and had an in-depth discussion about Alrik, a pioneering construction tech company known for its sophisticated software solutions that monitor and supervise fleet activities.
We also discussed about ONX Homes, a trailblazer in the South Florida housing market, utilizing precast concrete wall slabs to revolutionize single-family home construction.
Wrapping up, Patric told us about various pricing models for software as a service (SaaS) in the construction sector, examining how companies can effectively monetize their offerings while providing value to their clients.
Key Takeaways:
Alrik offers software for supervising and monitoring fleet activity in the construction sector, aiming to improve productivity and sustainability.
The intersection of logistics and construction tech is crucial for optimizing construction through efficient supply chains.
Having a background in construction or logistics can provide valuable insights and connections when building a construction tech startup.
ONX Homes is a single-family home building company in South Florida that uses precast concrete elements to build homes.
Pricing models for software as a service in the construction industry often involve annual or monthly subscriptions, token models, or hybrid models based on features, usage, or seats.
Timestamps:
00:00 Alrik: Optimizing Fleet Activity in Construction
05:43 The Intersection of Logistics and Construction Tech
09:33 ONX Homes: Innovating with Precast Concrete
13:11 The Importance of Background in Construction Tech Startups
Companies Mentioned:
Alrik
ONX Homes
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Bricks & Bytes
BBBC 06/04/24 - Okibo's $7.85M Funding, Construction Labor Shortages and Robotics Revolution
Okibo, a groundbreaking robotics company, has recently secured $7.85 million in equity funding. Their innovative product—a drywall finishing and painting robot—guided by AI and sensors, offers a transformative solution to address the persistent labor shortage and enhance efficiency in construction projects.
In this episode, we explore how robotics are reshaping the construction landscape and how Okibo's service-oriented approach to selling painting services, rather than the robots themselves, is revolutionizing industry norms.
We delve into the significance of partnerships and subcontractor models in scaling robotics ventures within construction, highlighting how these collaborations are essential for widespread adoption and implementation.
Key Takeaways:
Okibo secures $7.85 million in equity funding for their AI-guided drywall finishing and painting robot.
Robotics offer a solution to the labor shortage crisis in construction while enhancing project efficiency.
Partnerships and subcontractor models play a pivotal role in scaling robotics ventures within the construction industry.
The funding landscape for robotics in construction is growing steadily, signaling significant potential for innovation.
The future of robotics in construction lies in specialized product and software companies focusing on controlled environments and highly repeatable motions.
Companies Mentioned:
Okibo : https://okibo.com/
Monumental : https://www.monumental.co/
Icon Robotics : https://www.iconrobotics.com/
Canvas : http://gocanvas.io/
Paintjet : https://paintjet.com/
Promise Robotics : https://promiserobotics.com/
Timestamps:
00:00 Introduction and Overview
01:05 Addressing the Labor Shortage in Construction
08:05 Scaling Robotics Companies through Subcontractor Models
13:46 The Future of Robotics in Construction
25:18 The Use Cases of Robotics in Construction
29:55 The Nuances of Funding Rounds in Venture Capital
31:11 Wrap-up and Personal Reflections
Live from AU, Hosts World Travels, University Entrepreneurship Culture, NFL Insider
In this episode of Bricks, Bucks & Bytes, Owen reports live from Autodesk University in Nashville while Martin shares insights from ETH Zurich's startup conference and Patrick breaks down why popular AI bubble theories are dead wrong.Key Topics Discussed:Why European universities systematically crush entrepreneurial thinkingThe truth behind construction tech's massive funding rounds (80-120M per quarter)How to spot real market bubbles vs. media hype around AI stocksWhy hardware startups face an uphill battle against venture capital preferencesThe innovation crisis at large tech companies like AutodeskPatrick's exclusive behind-the-scenes tour of the LA Rams stadiumMartin's analysis of timber-earth construction panels and venture backabilityKey Quote: "You're basically being taught all the time to stay within reason. And if you want to build a really awesome company, you have to be going against the grain and doing things that other people will call you crazy for." - Patric on why universities fail at creating entrepreneursFrom concrete innovation to NFL stadium construction secrets, this episode exposes the uncomfortable truths about where construction technology is really headed.
Microsoft just bet $10M on construction AI - but industry insiders think it's a massive mistake.In this episode of Bricks, Bucks & Bytes, Owen, Patrick, and Dustin dive into the biggest tech moves shaking up construction while welcoming guests from two hot startups that just raised millions.Key topics discussed:Microsoft's massive $10M AI bet with Balfour Beatty - and why some think it's overpricedBluebeam acquires Firmus AI in a surprising exit storyAutodesk's crushing $1.7B earnings that made investors very happyWhy Figma's stock crashed despite good earningsOneCrew raises $7.5M to modernize paving contractorsBuildFactory's $3.3M raise for prefab marketplace (plus an epic stealth mode fail)OpenAI's ironic $400K job posting for a content strategist"Those are amazing companies, but both those pieces of software need to be shot behind the tool shed. Like they are so old." - Dustin DeVan on legacy construction softwareFrom billion-dollar acquisitions to startup war stories, this episode reveals what's really happening behind the scenes in construction tech - including how one founder got exposed by a LinkedIn web scraper and why some think Microsoft is charging contractors way too much for basic AI tools.
Our Sponsor: Archdesk - “The #1 Construction Management Software for Growing Companies - Manage your projects from Tender to Handover” check archdesk.comBuildVision - streamlining the construction supply chain with a unified platform - www.buildvision.io4M Analytics - Instant, reliable utility data you can trust and verify - https://www.4manalytics.com/
Chapters00:00 Intro01:26 Introduction and Martin's Travels03:11 Microsoft's Investment in AI for Construction15:48 Acquisition of Firmus AI by Bluebeam23:50 Autodesk's Latest Earnings Report29:22 Earnings Insights and Market Reactions32:20 Autodesk's Strategic Shifts and Growth Potential34:24 Figma's Earnings and Market Positioning37:11 Figma's AI Initiatives and Future Directions51:05 OneCrew's Innovative Approach to Paving Software01:01:00 AI in Construction: The Future of Scheduling and Management01:04:37 Navigating the Challenges of Selling to Government Agencies01:05:42 Britton Langdon's Journey: From Stealth to Startup01:07:40 The Prefabrication Marketplace: Bridging Supply and Demand01:14:22 Quality Control in Prefabrication: Ensuring Standards01:20:12 Defining Prefab: Strategies for Cost and Efficiency
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Bricks, Buck$ And Bytes
Robotics Mega Show with Dusty Robotics and ex-Waymo exec & CTO of Bedrock Robotics
Why these ex-Waymo engineers decided to conquer construction with their new startup, Bedrock Robotics.In this episode of Bricks, Bucks & Bytes, Owen and Patrick dive deep into the robotics revolution hitting construction with two industry-changing guests. Mo joins as co-host, bringing his Silicon Valley robotics expertise to unpack the biggest funding rounds and breakthroughs happening right now.Key topics discussed:- Why Dusty Robotics chose layout printing over flashier robot applications- How ex-Waymo engineers are retrofitting excavators with self-driving tech- The brutal truth about why most construction robotics startups failWhy accuracy is becoming the ultimate moat in construction robotics- How labor shortages are forcing the industry to embrace automation- The surprising lesson from building 60 robots in-house before outsourcing- Why Field AI's $405 million funding signals a tipping point for the industry- How construction sites are actually the perfect training ground for real-world roboticsKey quote: "Obviously everything's going to be built by robots in the future." - Tessa Lau, Dusty RoboticsFeaturing Tessa Lau, founder of Dusty Robotics (the most respected robotics company in construction tech), and Kevin Peterson, CTO of Bedrock Robotics (fresh out of stealth with $80 million to automate heavy machinery). This episode reveals why construction might be the key to unlocking robotics everywhere else.
🎧 Listen to the Podcast: https://open.spotify.com/show/3P7JkiN9X3N4Kh6jlDsOgi?si=91JP5nxvQbKStkp8AQdAOg 📩 Subscribe to the Bricks & Bytes Newsletter: https://bricks-bytes.beehiiv.com/🌐 Visit our website: http://bricks-bytes.com/
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Sponsors:BuildVision - streamlining the construction supply chain with a unified platform - www.buildvision.io4M Analytics - Instant, reliable utility data you can trust and verify - https://www.4manalytics.com/
Enjoying the insights? Hit that Subscribe button to stay ahead in construction tech, AI, and the future of how we build.
Chapters00:00 Intro01:06 Introduction to Robotics in Construction03:53 Current Trends and Sentiments in Robotics06:45 Barriers to Adoption in Robotics09:40 Autonomy vs. Collaboration in Robotics12:40 Field AI and Its Impact on Construction15:29 Dusty Robotics: Revolutionizing Job Sites18:18 The Future of Construction with Robotics21:04 Challenges in Construction Tech23:53 The Importance of User Experience in Robotics26:55 Lessons Learned from Robotics Development29:36 The Role of Accuracy in Robotics32:50 Proprietary Hardware vs. Off-the-Shelf Solutions39:43 Prototyping and Time to Market42:40 Manufacturing Challenges in Robotics44:46 Adoption of Robotics in Construction46:23 Pricing Strategies for Hardware47:41 Building a Thriving SaaS Business49:20 Transitioning from Self-Driving Cars to Construction53:30 Unique Product Offerings in Construction Robotics56:29 Collaboration Between Humans and Machines59:24 Adapting to Change in Construction01:11:09 The Future of Robotics in Construction
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Bricks, Buck$ And Bytes
Construction Productivity Myths, UAE Real Estate, TIMES VC Rankings, with Barton Malow
In this episode of Bricks, Bucks & Bytes, Owen, Martin, Dustin, and Patric dive deep into the biggest misconceptions shaking up construction and venture capital. Plus, we're joined by Victor Muchiri from Barton Malow (a $5 billion general contractor) who reveals what tech actually works in the field.What we cover:Why Dubai developers are bringing $19 billion worth of construction in-house (and whether this trend will hit the West)The shocking truth about that McKinsey productivity chart everyone uses in pitch decksWhy 8 out of 10 construction companies can't even define what a "project" isTime Magazine's controversial VC rankings that reward management fees over actual returnsVictor's insider perspective on which construction technologies actually deliver resultsThe Pablo Escobar business model lesson that might change how you think about valuationsKey quote: "Construction companies can't even define what a project is. Eight different customers cannot define internally what a project is. One customer had eight different definitions. This is your business - the project is the equivalent of the order in manufacturing." - PatricFrom Sequoia being mysteriously absent from "top VC" lists to why rats eating cash might be better than some investment strategies, this episode challenges everything you think you know about construction productivity, venture capital, and business models.------------Chapters00:00 Introduction and Awkward Beginnings03:08 Dubai's In-House Construction Trend11:01 The Best Owner Logic in M&A18:40 Market Dynamics and Developer Strategies21:19 Construction Productivity and Industry Comparisons30:45 Luxury and Value in Construction32:09 The Economics of Markup and Intangible Assets34:32 Current Trends in the UK Construction Market36:02 Introduction to Barton Mello and Its Operations38:36 Innovations in Construction Technology41:31 Data Strategies in Construction45:10 Defining Projects in Construction49:59 Standardization Challenges in Construction53:15 Engaging with Startups in Construction Technology54:35 Navigating AEC Tech Startups56:01 The Importance of Industry Expertise57:09 Defining Success in Venture Capital58:36 Exploring America's Top Venture Capital Firms59:53 Evaluating Venture Capital Performance01:01:42 Critiquing the Scoring Criteria of VC Firms01:04:49 The Role of Sequoia in Venture Capital01:08:25 Understanding the Power Law in VC Investments01:10:19 The Impact of Management Fees on VC Performance01:13:13 The Purpose Behind Controversial Lists01:15:33 Top Podcasts and Their Influence
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