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
$1.5M AI Employee Bonuses, Procore Growth Slowdown? & LinkedIn Growth Hacks with Derek Wong
What happens when AI hype, billion-dollar bets, and the cold reality of hardware vs. software collide — plus, how to dominate LinkedIn without sounding like everyone else?In this episode of Bricks, Bucks & Bytes Owen, Martin, Patric, and Dustin are joined by LinkedIn strategist Derek Wong to unpack:Which AI giant will actually have the best model by the end of August — and why public betting markets might be getting it wrongThe surprising slowdown at Procore vs. Trimble’s surge — and what it says about the future of construction techWhy hardware “moats” can be a game-changer for tech companiesThe right and wrong ways to use AI in business (and why LLMs aren’t your calculator)Derek’s playbook for turning LinkedIn into the ultimate “box of donuts” for winning high-value customers"Hardware is an amazing bathtub — once you control the install base, your software gets stickier and your distribution gets easier." — Patric Hellermann-----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/----- Chapters00:00 Intro01:13 Earning Potential and Career Strategies05:26 AI Models and Company Performance10:07 Evaluating AI Tools and Their Limitations14:42 Practical Applications of AI in Business17:52 Understanding User Interaction with AI Tools19:58 Market Dynamics in Construction Technology22:54 Contrasting Business Models: Procore vs. Trimble24:45 Valuation Insights and Market Perception31:25 The Future of Procore: Leadership and Vision39:28 Building Relationships through Content on LinkedIn46:45 Mind Share and Brand Recognition48:27 The Importance of Target Audience50:26 Crafting a Compelling LinkedIn Profile52:03 The Dangers of Self-Labeling54:26 Clarifying Your Value Proposition55:29 Content Strategy for Engagement57:57 The Role of Content in Building Relationships59:43 Understanding Your Goals on LinkedIn01:01:58 The Future of AI and Construction01:08:00 The AI Race and Its Implications01:09:46 Innovations in Modular Housing
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Bricks, Buck$ And Bytes
Turner's 44% Growth, Figma IPO Rogue Calculations, Meta's $150B Block & AI's 85% Fail Rate with Dex from Propel People
Construction companies are posting "impossible" growth numbers while tech giants can't spend their billions. What's really happening?In this episode of Bricks, Bucks & Bytes, Owen, Dustin, and Patric dive deep into the shocking stories reshaping the construction industry, plus a special guest appearance from construction tech veteran Dex who just raised $3 million to solve the industry's biggest crisis.What we cover:Turner Construction's mind-blowing 44% revenue growth (and why it's "impossible")The Figma IPO scandal that cost early investors millionsWhy Meta can't spend $150 billion even though they want toConstruction's $20 billion labor shortage crisisWhy 85% of AI projects fail (and the patterns that actually work)Energy bottlenecks blocking massive infrastructure spendingDex's new startup Propel People tackling the skilled worker shortageKey Quote: "This is highway robbery for the existing investors... they just lost a ton of value." - Patric on the Figma IPO controversyFrom billion-dollar construction wins to IPO disasters, energy grid meltdowns to recruiting revolutions - this episode reveals the hidden forces driving massive changes across the industry. Whether you're in AEC, tech, or just curious about where the economy is heading, these insights will change how you see the business world.-------Chapters00:00 Intro01:00 Origins of 'Okay' and Its Cultural Significance03:40 Turner's Impressive Growth in Construction06:21 Diversification and Strategic Partnerships in Construction09:23 Turner's Expansion into European Markets12:14 Figma's IPO and Market Dynamics15:01 Valuation Challenges and Investor Sentiment18:16 Banking Practices and IPO Pricing Strategies25:21 The State of AI in Enterprises29:16 Challenges of Pilot Programs30:53 Historical Insights on Project Failures35:00 Ensuring Technology Adoption41:43 Energy Infrastructure Bottlenecks47:36 Introduction to Propel People52:13 Building a Recruiting Platform for Construction56:24 Sourcing Talent in the Construction Industry58:18 Evolution of Technology in Construction60:11 The Role of Social Media in Recruitment63:04 Founder-Led Sales and Market Insights67:05 Setting Foundations for Success in Startups
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Bricks, Buck$ And Bytes
$555K Salary for Construction Engineers, Trunk Tools $40M Round, Stone Carving Robots with Monumental Labs
OpenAI is paying construction engineers $555K – but there's a catch that nobody's talking about.In this episode of Bricks, Bucks & Bytes, Owen, Martin, and Dustin expose the shocking reality behind AI salaries in construction, debunk viral industry charts, and reveal why your favorite building materials might be making a comeback.What we cover:Why OpenAI is paying engineers 5x more than top architecture firmsThe truth behind "construction AI growth" charts flooding social mediaHow AI coding tools are changing the startup game (and why most companies are doing it wrong)Trunk Tools' massive $40M funding round – and what it means for the industryInside Dexto's $15M bet on prefabrication technologyWhy stone buildings could dominate the future (thanks to robots)The real strategy behind why successful startups raise more money than they needKey quote: "I've never met a civil engineer or an architect making that much money. Ever." – Dustin DeVan on OpenAI's salary offeringsFrom fake data manipulation to robotic stone carving, this episode pulls back the curtain on where construction tech is really headed. Whether you're an investor, founder, or just trying to understand why your industry is changing so fast – this one's a must-listen.--------Sponsors:BuildVision - streamlining the construction supply chain with a unified platform - www.buildvision.io4M Analytics - Instant, reliable utility data you can trust and verify - https://www.4manalytics.com/------------Chapters00:00 Intro01:25 Introduction and Welcome Back02:43 Exploring AI in Engineering Jobs04:55 Salary Insights for Engineers at OpenAI08:60 The Future of Engineering Roles and Compensation11:46 Equity and Compensation in Tech Companies17:32 Navigating AI Technologies in Business21:53 Funding and Growth in the AI Sector22:30 The Evolution of AI in Construction Tech25:37 The Importance of Founder Branding in Tech31:10 Analyzing AI Adoption Across Industries36:41 Dextal: Revolutionizing Prefabrication Technology51:55 Introduction to Robotic Stone Carving52:32 Innovative Building Techniques with Stone54:04 The Role of AI in Stone Carving55:53 Future of Stone Construction57:22 Business Model and Customization59:29 Reviving the Craft of Stone Carving61:11 Challenges in Stone Architecture64:32 Sustainability of Stone as a Building Material65:50 Personalization in Sculpture67:18 Market Demand for Stone Products70:51 The Future of Robotics in Construction
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Bricks, Buck$ And Bytes
$5B Heat Crisis, 89% Productivity Drop, Startup Reality Check, SuperSede Plastic Innovation, $10M Raise Success with Sean Petterson
Is your construction project secretly losing $5 billion a year? This industry insider just exposed the shocking truth about why 89% of construction firms are failing.In this episode of Bricks, Bucks & Bytes, Owen, Martin, and Patric dive deep into the hidden forces reshaping the AEC industry, plus exclusive interviews with game-changing founders who are disrupting everything.What we cover:The $5 billion heat crisis destroying construction schedules (and why Martin thinks it's just an excuse)Why 70% of construction tech startups are failing at Series A funding roundsSean Petterson from SuperSede reveals how recycled plastic is replacing plywood foreverThe brutal truth about why all construction software has terrible UX designMo Akbari's controversial take on how AI could kill DocuSign overnightPatrick's explosive Coca-Cola business model that could transform constructionWhy Europe's buildings are designed to overheat (and what that means for your projects)Key Quote: "If you build shit companies and you raise your seed round on a shit promise and you can't deliver on that shit promise, well, at series A and B, it's easier to be found out." - Patric HellermannFrom climate disasters to funding secrets to revolutionary materials, this episode pulls back the curtain on what's really happening in construction tech. Warning: You might never look at your projects the same way again.----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/-------Chapters00:00 Intro01:07 Introduction and Technical Glitches04:14 Cultural Insights from Corfu07:07 Heat and Productivity in Construction10:05 Debating Heat Management Solutions13:09 Innovations in Construction for Heat Management16:12 Building Regulations and Overheating Concerns19:08 The Role of Insulation and Building Design22:06 Funding Analysis and Market Trends36:22 Funding Trends in Construction Tech41:08 Challenges in Achieving Series A and B Funding44:36 Introduction to Super Seed and Its Innovations51:58 Super Seed's Unique Product Offerings57:31 Scaling and Capacity Building in Manufacturing01:02:34 Brand Strategy and Market Positioning01:04:54 Navigating Industry Standards and Specifications01:13:46 Choosing the Right Communication Tools01:14:42 The Importance of User Experience in Construction Tech01:16:56 Evaluating Product Design and Usability01:19:38 Metrics for Assessing User Experience01:25:19 The Role of AI in Product Development01:29:24 The Future of Document Signing Solutions01:32:55 The Impact of Pricing on Market Competition01:35:24 Mo's Upcoming Project Reveal
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