BBBC 22/03/24 - $31m Dollars, 20x Revenue Growth and Straight Outta Y Combinator - PermitFlow & Furno
Welcome to the Bricks & Bytes Broadcast (BBBC) with Patric Hellermann of Foundamental.
This new format of episode is a weekly dive into the latest construction tech news from the perspective of investors.
From innovations to fundings, market insights, and VC-isms, if you’re building in construction tech, investing in construction tech, or intersecting between the tech and physical world, then we’ll help you keep your finger on the pulse.
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In this conversation, Patric, Martin and Owen discuss two startups: PermitFlow and Furno.
They talk about the challenges faced by PermitFlow in dealing with the slow permit process in the construction industry and the potential for digitizing the planning process.
They also discuss Furno, which offers an alternative to traditional cement plants by providing modular portable kilns that can reduce CO2 emissions.
They explore the funding differences between capital-intensive startups like Furno and digital startups like PermitFlow. Martin also shares his thoughts on time leverage and being more productive.
Takeaways:
Patric's worst investment decision
PermitFlow is a startup that aims to digitize the planning process in the construction industry and streamline the permit process.
Ferno offers modular portable kilns as an alternative to traditional cement plants, with the potential to reduce CO2 emissions by 88%.
Capital-intensive startups like Ferno require significant investment for production, while digital startups like Permit Flow can attract more funding.
Martin emphasizes the importance of time leverage and being productive to maximize efficiency and effectiveness.
Timestamps:
00:00 Introduction and Worst Investment Decision
(01:16) Discussion on PermitFlow
(12:49) PermitFlow's Funding and Capital Requirements
(14:36) Introduction to Furno Materials
(15:54) Investor's Thoughts on Furno Materials
(23:54) Closing Remarks
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Companies Mentioned:
Permitflow - https://www.permitflow.com/
Furno - https://furno.com/
Foundamental - https://foundamental.com/
Y Combinator - https://www.ycombinator.com/
Kleiner Perkins - https://www.kleinerperkins.com/
Felicis - https://www.felicis.com/
Hoffmann Green Cement - https://www.ciments-hoffmann.com/
Aker Solutions Norway - https://www.akersolutions.com/
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Bricks & Bytes
Construction’s £37 Million Augmented Reality - A New Horizon | David Mitchell, CEO at XYZ
Join us for this fascinating episode where we sit down with David Mitchell, the Founder of XYZ – a company revolutionising the construction industry with cutting-edge augmented reality tools. Discover how XYZ's headsets are transforming job sites by bringing real-life 3D models directly to workers, ensuring millimetre accuracy and preventing costly errors.
Listen as David shares his ambitious vision to revolutionise job sites worldwide with AR. Learn how their specialised AR headsets are already preventing costly errors, enabling real-time progress tracking on complex projects, and more.
Key Takeaways:
How XYZ's AR technology is propelling construction to new heights
The importance of building the right team to achieve ambitious goals
The vast potential of AR to transform the construction industry and beyond
And a lot more.
Don't miss this insightful conversation about the future of construction!
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This episode is brought to you by Shft—helping contractors like you leverage BIM to secure a leading position in the race towards construction’s digital future.
Visit: https://maketheshft.digital
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BuildVision is a procurement network for the $5T commercial construction market. We are transforming the commercial construction supply chain by bringing contractors, manufacturers, and project stakeholders onto a single software platform—revolutionizing how every component is sourced, purchased, and financed.
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(00:00:00 - 00:02:27) - Intro To David & Our Sponsors
(00:02:57 - 00:10:42) - About David's Journey Into XYZ Reality
(00:10:42 - 00:35:48) - Understanding XYZ Reality
(00:35:48 - 00:44:03) - How David Manages Everything
(00:44:03 - 00:50:14) - 360 Reality Capture vs XYZ Reality
(00:50:14 - 00:56:30) - Future Plans of XYZ In Terms Of The Data They're Capturing
(00:56:30 - 01:12:44) - David's Experience Of Raising Money From VCs
(01:12:44 - 01:13:39) - Outro
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Bricks & Bytes
Sold for $500m - Scott Wolfe's Epic Story With Levelset
Note: This is a re-release of an episode that was originally published at Groundbreakers. "I sued the bar association because they tried to restrict blogging. Content was just the way I saw the world." - This mindset led to a $500M exit.In today's episode of Groundbreakers from Bricks and Bytes, we had Scott Wolfe, founder of Levelset, share the remarkable journey of building and selling his construction payment software company to Procore. From a law practice dealing with post-Katrina restoration work to pioneering construction tech - Scott's story is filled with invaluable insights.Tune in to discover:✅ How helping contractors with payment problems evolved into a $500M exit ✅ Why Scott took the lowest valuation term sheet and spent 16-36 months building relationships with investors before taking their money ✅ The power of "Help First" in content marketing - how Levelset generated thousands of leads by focusing on solving problems ✅ Why Scott believes companies aren't sold, they're bought - and what that means for founders planning exitsListen to the full episode on Spotify to learn how Scott turned construction payment headaches into a category-defining company that changed an industry.
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Bricks & Bytes
The Tool That Makes Carbon Transparency a Reality: Tangible's Solution for Sustainability
Did you know that building materials account for 11% of all greenhouse gas emissions globally? It's a huge number, and that's why Tangible exists!
Recently, we were invited to the BOOST cohort from Suffolk Technologies where we had a chance to interview Anneli, co-founder and CEO of Tangible, and we got to learn about how they're helping real estate developers measure and reduce embodied carbon, and much more!
Tune in to find out about:
How Tangible measures embodied carbon using BIM files, making it easy for developers to see their impact.
Why legislation, corporate demand, and investor pressure are driving the need for carbon transparency.
How Tangible is helping to reduce the impact of concrete, a major source of emissions.
How data is used to drive better decisions in material selection and building design.
Building Materials Marketplace vs Cloud Manufacturing: What Works Where?
Building my own house made me realize how broken construction supply chains are - Saudi BRKZ founder's story sounds familiar?In today's episode of Bricks, Bucks and Bytes, we explored how Saudi BRKZ secured $17M Series A funding for their construction materials marketplace, bringing their total raise to $22.5M in just two years.We discussed how emerging markets like Saudi Arabia present unique opportunities for construction tech marketplaces that wouldn't work in Western markets, due to their concentrated demand and fragmented supply.We also got fascinating insights from Patric on why having 1,100 suppliers might not be the most efficient strategy for a construction materials marketplace, and why the "cloud manufacturer" model could be more effective.Tune in to learn about:✅ Why Saudi Arabia's construction tech scene is heating up✅ The difference between managed marketplaces and cloud manufacturers✅ How venture debt can be smartly used in profitable marketplace models✅ Why expanding to 40 cities quickly might raise questions for investorsListen to the full episode on Spotify to hear our deep dive into construction tech marketplaces and emerging market opportunities.----------------Chapters00:00 Introduction and Personal Insights01:55 Exploring Construction Tech Opportunities05:01 Understanding Bricks and Its Business Model09:56 Supply Chain Dynamics in Emerging Markets15:08 Funding Strategies and Market Expansion20:06 Debt Financing and Working Capital Management23:51 The Role of Debt in Business Growth24:18 Evaluating Investment Metrics25:10 Understanding Unit Economics26:31 Investment Opportunities in Saudi Arabia28:11 Optimism in the Construction Industry29:39 Navigating Customer Relationships in Startups30:00 The Challenge of Custom Solutions35:34 The Importance of Long-Term Relationships36:18 Technology Integration in Construction39:02 The Future of Construction Technology----------------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/—---------------------------------------------------------- #podcast #construction #constructionindustry #bricksandbytes #startups #architecture #design #civilengineering #engineering #constructiontechnology #engineer #architect #civilengineer #concrete #podcaster #podcasting #entrepreneur #podcasts #podcastlife #startups #entrepreneurship
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Bricks, Buck$ And Bytes
Invoice reconciliation, AI automation, Material data infrastructure & CFO-driven adoption
From calling suppliers to schedule deliveries to manually typing data into Excel - this German startup secures €12.5M to fix construction's paper problem.In today's episode of Bricks, Bucks and Bytes, we had Henric Meinhardt from comstruct walk us through how they're digitizing the material delivery and invoice reconciliation process between suppliers and contractors.We got to learn about how they're using AI to process unstructured data from thousands of suppliers, replacing manual data entry with automated workflows.And interestingly, we heard an investor's perspective on why focusing on financial processes can be the best entry point into construction companies, starting with the CFO rather than on-site teams.Tune in to find out about:✅ How comstruct automates invoice matching and material tracking✅ Why large language models are making traditional EDI interfaces obsolete✅ Their unique go-to-market strategy targeting CFOs first✅ How they convinced World Cup winner Mario Götze to investListen to the full episode on Spotify to hear how comstruct is building the infrastructure for construction's digital future.-----------Chapters00:00 Introduction to Constrakt and Funding Success03:06 The Evolution of Construction Processes06:07 Agentic AI and Its Impact on Construction09:01 Future of Invoicing in Construction12:11 Optimizing Procurement Processes15:08 Supplier Engagement and Automation17:48 Competition and Market Landscape20:59 ESG Considerations in Construction24:07 International Expansion and Future Plans24:37 Technical Difficulties and Humor25:09 Go-to-Market Strategy Insights28:57 Understanding Customer Needs and ROI29:59 Investment and Growth Plans31:44 Navigating the Construction Tech Landscape32:38 Pre-Construction Processes and Challenges36:54 Prioritization in Business Strategy39:14 Engaging Investors in Unique Niches
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Bricks, Buck$ And Bytes
Why European Construction Tech Could Outperform US Startups: A 5X Cost Advantage Revealed
In today's episode of Bricks, Bucks and Bytes, we learn about the story of an AEC start-up that raised $25M from a prestigious investor only to shut up shop shortly after announcing their round.We got insights into late-stage funding challenges in construction tech, with a seasoned investor highlighting why businesses struggle to raise Series B rounds when earlier rounds were overvalued.Also, we learned why Europe might offer better returns for construction tech investors than the US, despite the US potentially delivering bigger individual outcomes.Tune in to find out about:✅ Why listening to non-VC entrepreneurs is crucial for sustainable growth✅ The mechanics of construction tech startup valuations across funding rounds✅ How to navigate down rounds and recapitalization✅ Why European construction tech startups have a 4-5x cost advantage----Chapters00:00 Introduction and Light Banter01:49 Challenges in Construction Tech Funding04:27 Strategies for Raising Capital09:20 Profitability vs. Growth in Construction Tech12:56 Late Stage Funding Trends15:24 Avoiding Overvaluation in Funding Rounds17:28 Valuation Mechanics in Funding Rounds21:16 Equity Dynamics in Down Rounds23:06 Anecdotes from the Industry25:42 Reflections on Construction Tech Investing29:25 Comparative Analysis: Europe vs. US in Construction Tech33:00 Future of Point Solutions in Construction Tech
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Bricks, Buck$ And Bytes
First Principles & Founder Success: Lessons from Scott Wolf's Levelset Journey
"20 years of experience or 1 year repeated 20 times?" - This profound question from Scott Wolfe (Levelset) captures why some founders achieve extraordinary success while others stay stagnant.
In today's episode of Bricks, Bucks and Bytes, we explored how compound experience and non-linear career paths shape successful founders in construction tech.
Tune in to learn about:
✅ How Scott Wolfe's diverse background (software, retail, law) led to Levelset's success
✅ Why non-linear experiences often lead to breakthrough innovations
✅ The truth about choosing the right capital structure for your business
✅ Why your customer should be your best source of capital
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Chapters
00:00 Introduction and Context Setting
01:08 Scott Wolf's Impactful Insights
02:15 The Concept of Compound Experience
04:17 Nonlinear vs. Linear Experiences
10:38 The Importance of Curiosity
12:20 Applying Compounded Knowledge
16:33 The Role of Blogging in Business Growth
25:50 Choosing the Right Capitalization Method
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