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
"AI Can't Handle Full Design Workflows!" - Automation Promises & Real-World Limitations from AEC Experts
"Is it possible to get from concept to fully constructible building designs in hours? "In today's episode of Bricks, Bucks and Bytes, we got to learn about Augmenta's $10 million seed funding for their AI-powered design platform that aims to automate electrical designs for buildings.We also learned about the ongoing debate between automated design platforms versus improved authoring tools, and which approach might ultimately capture more value in the MEP/S design space.Patric shared his investor's perspective that data infrastructure, authoring tools, and systems of record may be better investment targets than pure AI solutions, as they're likely to embed AI capabilities and control workflows long-term.Tune in to find out about:✅ The challenge of creating "fully constructible" designs through automation✅ Why minimum feature sets in building design software are exceptionally high✅ The reality that vectorial AI systems will always need human refinement✅ How the MEP design workflow might evolve with AI assistance------------Chapters00:00 Intro03:40 Augmenta's Seed Funding and Automation in Design07:02 Challenges of Constructible Designs11:35 The Importance of Minimum Feature Sets15:01 Marketing vs. Reality in Construction Tech18:19 Competition in the Automation Space20:16 Navigating the Complexities of MEP Design24:11 The Future of Automated Building Design30:11 The Role of AI in Design Automation34:26 The Intersection of Authoring Tools and Automation39:00 The Evolving Landscape of AI in Construction
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Bricks, Buck$ And Bytes
"$65 Billion Wasted!" - How Twin Knowledge's AI Prevents Costly Construction Rework
"$65 billion worth of rework happened in the United States last year in construction. The expectation in the market is that construction projects run over budgets and timelines."In today's episode of Bricks, Bucks and Bytes, we got to learn about Twin Knowledge, an AI-powered platform that raised $3.7M to help construction and real estate stakeholders QA/QC building drawings before they hit the field.We discovered how the company is tackling the massive $65B rework problem by creating AI assistants that help query unstructured data across different silos.Also, we learned about the power of "white glove" implementation approaches in construction tech from JP Bowgen of Camber Creek.Tune in to find out about:✅ Why developers feel the most pain from drawing errors✅ How Twin Knowledge can help teams do "4-5X the work with half the team"✅ Why founder expertise matters more than ever in the AI boom✅ The importance of catching errors upstream before they become costly rework-------------Sign up to the #1 Newsletter In Construction Tech. Join over 1,000 like-minded Founders, Investors and Techies disrupting the way we build. Forever : https://bricks-bytes.beehiiv.com/subscribe-------------LinkedIn: https://www.linkedin.com/company/bricks-bytes/X/Twitter: https://twitter.com/bricksbytespodYoutube: https://www.youtube.com/channel/UCmNbunUTIIQDzbJgGJt9_ZgInstagram: https://www.instagram.com/bricksbytes/---------------Chapters00:00 Introduction to Twin Knowledge and AI in Construction02:53 Understanding the Accuracy and Utility of AI in Building Drawings06:14 The Impact of Rework in Construction and the Role of Twin Knowledge08:47 Evaluating the Value of Twin Knowledge in Construction Projects11:57 The Leadership Behind Twin Knowledge and Its Market Position14:56 The White Glove Approach in Technology Implementation17:57 The Future of Twin Knowledge and AI in Construction28:10 The Vision Behind Twin Knowledge30:01 Funding and Future Plans32:02 Competitive Landscape and Unique Positioning33:55 Understanding Cost Savings and Value Proposition36:09 Rework Challenges in Construction38:58 Incentives and Business Dynamics43:59 Final Thoughts on AI and Future Prospects
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Bricks, Buck$ And Bytes
Germany's Fiscal Bazooka Ignites Europe - Construction Tech Opportunities & Capital Shifts from Global VC Perspective
"Germany's fiscal U-turn might be the drop that makes Europe's bucket overflow."In today's episode of Bricks, Bucks and Bytes, we got to learn about Camber Creek's unique investment approach with JP Bowgen - they raise funds from 300+ real estate companies to drive value for founders they back.We discussed Germany's recent "fiscal bazooka" - a massive €500 billion infrastructure fund alongside unlimited military spending, potentially kickstarting a new era of European optimism.Also, we learned about how building materials companies in Germany jumped 20% in share prices following this announcement, creating a flywheel effect for construction tech.Tune in to find out about:✅ Why JP predicts we'll see the first German construction tech unicorn in 4 years✅ How infrastructure investment creates opportunities for material innovation✅ The potential shift in global economic power dynamics✅ Why successful US startups are increasingly looking to expand into EuropeListen to the full conversation on Spotify.----------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/bricksbytespodYoutube: https://www.youtube.com/channel/UCmNbunUTIIQDzbJgGJt9_ZgInstagram: https://www.instagram.com/bricksbytes/—---------------------------Chapters00:00 Introduction to Camber Creek and JP Bowgen06:09 Germany's Fiscal U-Turn and Historical Context11:53 Implications of Germany's Infrastructure and Defense Spending17:58 The Impact on Construction Tech and Startups24:01 Future Prospects for Investment in Germany28:59 Exploring On-Site Robotics and Supply Chain Solutions31:12 The Importance of Energy Efficiency in Europe33:28 Infrastructure Investment and Its Impact on Housing36:32 The Future of Venture Capital in Europe40:34 The Shift of Founders from the US to Europe44:11 Economic Implications of US Isolationism49:57 Cultural and Economic Power Dynamics
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Bricks, Buck$ And Bytes
Reneo’s €600M to Transform Real Estate, Nodes and Links $12m Scheduling Raise
"In Europe, you need your buildings to consume less energy because we don't have a lot of prime energy." - Patric on why Reneo's business model works beyond regulations.In today's episode of Bricks, Bucks and Bytes, we got to learn about Reneo's massive €600M funding round (with €45M in equity) to transform energy-inefficient buildings into greener assetsWe also explored Nodes and Links $12M Series B funding for their AI-powered scheduling management platform that enhances project delivery across construction and other industriesPlus, we gained valuable insight into how successful construction tech companies approach scheduling through three distinct models: full automation, analytics/visibility, and collaboration-focused solutions.Tune in to find out about:✅ How Reneo creates structural cost advantages through radical standardization✅ Why co-CEOs can work well with the right dynamic, especially during adversity✅ The critical difference between having a schedule versus the act of scheduling✅ Why one investor got excited seeing Salil Deshpande (Uncorrelated) backing Nodes and LinksListen to the full episode on Spotify to learn how these construction tech innovators are reshaping the industry.------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/bricksbytespodYoutube: https://www.youtube.com/channel/UCmNbunUTIIQDzbJgGJt9_ZgInstagram: https://www.instagram.com/bricksbytes/-----Chapters00:00 Introduction and Context01:10 Overview of Reneo and Its Business Model05:54 Reneo's Unique Approach to Real Estate Investment11:49 Investment Rationale and Market Dynamics17:52 Challenges and Opportunities in the Real Estate Sector24:05 Conclusion and Future Outlook25:40 Exploring Nodes and Links in Scheduling Technology30:01 Models of Scheduling: Automation, Visibility, and Collaboration36:02 The Future of Scheduling Software: Differentiation and Optimization39:59 Investment Insights: Evaluating Funding and Market Dynamics
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