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
Construction Crash Coming - Our NEW Host, US Economy Contracts 0.3%, Trump Tariffs Hit Construction, Autodesk vs Procore Battle, AI, Biggest Construction Tech Failures
Is Construction Headed for a Slowdown, or a Full-Blown Crash?
This week on Bricks, Bucks & Bytes, things get spicy.We dig into the 0.3% drop in US GDP—and why it might just be the beginning for the construction sector. But tariffs and rate hikes are only half the story. The real drama? AI hype cycles, Autodesk vs. Procore, and why most “AI for construction” startups are just faucets with no bathtub.
Inside this episode:Why the US economy is wobbling—and how it's already hitting constructionThe real reason projects are stalling (hint: it’s not just input costs)The “bathtub vs. faucet” theory of AI—and how it exposes weak GTM strategiesAutodesk: overpriced legacy? Or sleeping giant ready to crush Procore?The top 20 construction tech failures—modular startups dominate the list
Plus:What BuildingConnected could have become (and why Autodesk isn’t using it)Why not having pricing certainty is killing dealsThe Katerra excuse that made everyone on the show wince
Key Quote:
"You're not solving the problem. You're just identifying the problem for someone else to win." - Dustin DeVan
If you’re in AEC and want to see the next wave coming before it hits... this one’s required listening.
------Chapters00:00 Intro01:35 Introduction and Welcome02:43 US Economy Contraction and Recession Concerns08:38 Impact of Tariffs on Construction Costs13:37 Short-term vs Long-term Economic Perspectives19:40 Global Supply Chain and Trade Dynamics25:34 AI's Role in Construction and Economic Resilience31:35 Business Strategies in a Volatile Market38:25 Innovative Content Formats in AI and Supply Chains40:06 The Role of AI in Construction Economics42:57 AI as a Commodity: The Bathtub Metaphor49:26 Disrupting the Authoring Space: Challenges and Opportunities56:44 Investing in Autodesk: A Critical Analysis01:11:11 Procore's Challenges and Market Dynamics01:13:44 Marketing Strategies in Construction Tech01:15:55 Potential Disruptors: Google and Microsoft01:20:15 Mergers and Acquisitions in Construction Tech01:21:47 Top Construction Tech Failures: A Game01:27:00 Lessons from Construction Tech Failures
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Bricks, Buck$ And Bytes
VCs Are NOT Always The Answer - Bootstrapping Benefits & Sustainable Growth from Funding Experts
"Venture capital in PropTech increased 82X from $200M to $15B in just 15 years - but is VC money right for construction tech founders right now?"In today's episode of Bricks, Bucks and Bytes, we got to learn about J.P. Bowgen's journey from AlphaSites to Macy's corporate innovation team to becoming a partner at Camber Creek.We got to learn about how Camber Creek de-risks investments by testing startups with their 300+ real estate and construction LP network before investing.Also, we learned about J.P.'s hot take that PropTech and ConTech might not actually be mature enough for venture capital money right now - with only 1 in 4 companies spending more than 1% of revenue on digitization.Tune in to find out about: ✅ How Camber Creek operates as an "outsourced R&D department" for real estate companies ✅ Why construction tech is 5-7 years behind PropTech but might soon leapfrog it ✅ The shift in ConTech companies selling upstream to owners instead of just GCs ✅ The importance of personal brand building for VCsListen now on Spotify to hear the full conversation with J.P. Bowgen.-----------Chapters00:00 Introduction and Personal Updates01:10 Journey into Venture Capital05:30 Transition from Macy's to Camber Creek14:51 Establishing a Presence in Europe16:23 Camber Creek's Investment Thesis and Origins18:29 The Digital Transformation of Real Estate19:55 De-risking Investments through Strategic Engagement21:21 The Role of Strategic Investors in Venture Capital23:41 Navigating the Landscape of Venture Capital26:26 The Importance of Media in Deal Flow30:29 Building a Personal Brand in Venture Capital33:41 Opportunistic Investing in PropTech and Construction Tech37:30 The Shift in Technology Adoption in Construction39:36 Debunking Misconceptions about Venture Capital
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Bricks, Buck$ And Bytes
US VC Returns Underperform Globally - Market Saturation & Hidden Opportunities from Construction Unicorns
"The US VC market is the worst performing of all VC markets across the world in terms of financial performance." In today's episode of Bricks, Bucks and Bytes, we got to learn about BuildOps securing $127 million in Series C funding and achieving unicorn status with a $1B valuation.We also explored the structural differences between US and European contractor software markets, where European contractors are typically smaller and 5-10 years behind in software adoption compared to their US counterparts.Additionally, we gained insight into how fund size impacts investment strategy, with smaller VC funds avoiding obvious competitive spaces that larger funds eagerly pursue.Tune in to find out about:✅ Why BuildOps and Service Titan succeed with modular software for contractors✅ How SaaS business models justify higher valuations than traditional services✅ Why European construction software is following a roll-up strategy✅ The difference between investing in "the business" versus "the share price"------Chapters00:00 Introduction and Recent Developments04:50 BuildOps: A New Unicorn in Construction Tech19:06 Comparing BuildOps and ServiceTitan27:49 Valuation Insights and Market Dynamics
"Windows and doors constitute about 8% of a home's value, but the ratio actually skews upward as the value of the home goes up." - A fascinating insight into why this category commands such high margins globally.In today's episode of Bricks, Bucks and Bytes, we got to learn about Green Fortune's $4.5M funding from Fundamental, bringing cloud manufacturing to the windows and doors industry in India.We got to learn about India's evolving investment landscape, with Western funds increasingly launching India-specific strategies rather than treating it as just another "emerging market."Also, we learnt about the "Dolphin Founder" philosophy that investors value - founders who "come up for air" by proving EBITDA profitability before a funding round.Tune in to find out about:✅ Why windows are one of the most touched points in your home and critical to energy efficiency✅ How Green Fortune is filling the "missing middle" between luxury and substandard options✅ Why building materials companies perform exceptionally well in Indian public markets✅ The upcoming IPOs of construction tech companies in India for 2025Listen to the full episode on Spotify to hear more insights on construction tech investments across global markets.-----------Chapters00:00 Introduction and Guest Welcome01:39 Investment in Green Fortune: Overview and Rationale06:30 Cloud Manufacturing in the Building Materials Sector10:04 Market Dynamics: Customization and Standardization in India13:21 The Importance of Windows in Construction15:06 Green Fortune's Unique Selling Proposition18:58 Utilization of Investment Funds26:38 Business Model and Revenue Generation26:44 Exploring Green Fortune's Sales Channels29:01 Profitability and Business Model Insights31:19 Innovations in Manufacturing and Supply Chain34:01 Investment Landscape in India39:45 Challenges and Opportunities for Startups46:55 The IPO Market in India
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