In the past five years, the amount of investment in construction-technology companies continues to rise, as investors look at this market as one that is ripe for innovation. In an industry that needs solutions to complete complex projects in a quicker timeline, technology could be the solution, and investors recognize this.
JLL suggests that venture capitalists interest in investing in global construction technology startups in the first half of 2018 was 30% above the 2017 total. In fact, it says the total funding since 2009 is roughly $4.34 billion, with 478 funding deals since that time.
Looking at the industry as a whole, and not just the startup market, McKinsey puts the number higher, at roughly $10 billion in investment funding for construction-technology firms from 2011 through early 2017. This includes technology throughout the entire construction lifecycle of a facility.
Still, McKinsey suggests that startups are the most likely to develop tools for the construction phase, with there being about 11 major use cases for the stage.
Here’s where most of the investment went: document-management use cases, followed by equipment management, and then ERP (enterprise-resource planning) systems. However, narrowing it to just the last five years, performance management and field productivity took the top spot, showing a shift in trends in the market.
Still, the question remains: Will all this funding jumpstart innovation in construction? Or will big players simply come along, swoop up the little guys, and continue to monopolize the market? While investors recognize potential in the market, will it result in benefits for the contractor?
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