Shows
Bricks, Buck$ And BytesVibe Coding Will Die, nPlan CTO Warning, Woodchuck $3.75M Raise, Parsepec $20M Series A,Construction companies are claiming they're "software companies" now - but this dangerous trend could destroy the industry.In this episode of Bricks, Bucks & Bytes, Owen and Patric dive deep with Alan Mosca (CTO of nPlan) about the AI revolution that's both exciting and terrifying the construction world. Plus, we hear from Todd Thomas of Woodchuck AI about turning construction waste into profit, and Forest from Parspec Inc on their 20 million Series A raise.Key topics discussed:Why contractors thinking they can "vibe code" critical software is setting them up for disaster...2025-07-251h 20Bricks, Buck$ And Bytes$5B Heat Crisis, 89% Productivity Drop, Startup Reality Check, SuperSede Plastic Innovation, $10M Raise Success with Sean PettersonIs 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 $5 billion heat crisis destroying construction schedules (and why Martin thinks it's just an excuse)Why 70% of construction tech startups are failing at Series A funding roundsSean Petterson from SuperSede...2025-07-181h 37Bricks, Buck$ And BytesBig Tech Rethinks Construction, Palantir $100M Nuclear Deal, Data Center Capacity Crisis & Nvidia AI ProfitsBig Tech is Quietly Taking Over Construction (And Making Billions Doing It)In this episode of Bricks, Bucks & Bytes, Owen, Martin, and Patric dive deep into how tech giants are reshaping the construction industry - and who's really profiting from the AI boom.What we cover:How big tech companies are forcing construction firms to completely rethink project deliveryWhy Palantir just signed a $100 million deal with a nuclear company (and what it means for the industry)The shocking truth about where all the AI money actually goes2025-07-041h 24Bricks, Buck$ And BytesChatGPT Makes Us Dumber, LIVE from House Factory, Vibe Designing Is HereDoes AI Actually Make Us Dumber? MIT Study Reveals Shocking Truth + $15B DocuSign vs. Tiny AI Startup In this episode of Bricks, Bucks & Bytes, hosts Owen, Martin, and Patric dive deep into the controversial world of AI and its impact on our brains, plus exclusive behind-the-scenes access to Cuby's revolutionary construction process.Key topics discussed:MIT study proves ChatGPT users show "lowest brain engagement" and get lazier over timeDocuSign's $15 billion empire threatened by AI-built copycat app - is this the future?Exclusive live tour of Cuby's construction site...2025-06-271h 33Bricks, Buck$ And BytesApple Kills Cold Calling, In Office Scares CEO’s, Insurance Proves Climate Change Fears20 cold calls a day, $150 million in legal fees, and why the smartest CEOs are terrified of in-person competitors.In this episode of Bricks, Bucks & Bytes, hosts Owen, Martin, Dustin, and Patric are joined by Justin Levine, CEO of Shepherd, for a no-holds-barred discussion about the future of business, technology, and construction.What we dive into:Apple's new AI call screening feature and why it spells doom for sales teamsThe shocking reality of 20 cold calls per day (and why most are terrible)Remote vs. office work: which startup would y...2025-06-131h 41
EUVCVC | E491 | Patric Hellermann & Andreas on the famed “VC edge” aka differentiationIn this special episode, we welcome back Patric Hellermann to dive deep into the concept of edge in venture capital. This isn't your average discussion on differentiation—it's a methodical breakdown of what creates enduring alpha for fund managers, grounded in Patric’s experience building Foundamental, a B2B-focused early-stage VC.This episode is for anyone asking: How do I build an edge that scales? You’ll leave with answers rooted in practice, not theory.Here’s what’s covered:02:30 What Makes an Edge? Why Most VCs and LPs Struggle to Answer06:15 The 4 S...2025-06-121h 13
The European VCPatric Hellermann & Andreas on the famed “VC edge” aka differentiationIn this special episode, we welcome back Patric Hellermann to dive deep into the concept of edge in venture capital. This isn't your average discussion on differentiation—it's a methodical breakdown of what creates enduring alpha for fund managers, grounded in Patric’s experience building Foundamental, a B2B-focused early-stage VC.This episode is for anyone asking: How do I build an edge that scales? You’ll leave with answers rooted in practice, not theory.Here’s what’s covered:* 02:30 What Makes an Edge? Why Most VCs and LPs Struggle to Answer* 06:15...2025-06-121h 13Bricks, Buck$ And BytesNew Steel Tariffs Hit, Is A 12hr Work-day Unreasonable, Decision Making Frameworks, ChaGPT NoteTaker Kills Startups50% Tarrifs are about to break construction - And That's Only The BeginningIn this episode of Bricks, Bucks & Bytes, our hosts dive deep into the chaos reshaping the construction industry and startup world. What we cover:The shocking 50% steel and aluminum tariffs that just doubled construction costs overnightWhy rebar prices have exploded 26% and added $14,000 to every homeHow 68% of builders are now facing project delays due to supplier chaosThe brutal truth about why VCs pushing "996" work culture are dead wrongChatGPT's bombshell announcement t...2025-06-061h 36Bricks, Buck$ And BytesBuilder AI $450M Bankruptcy - The Beginning Of The End for AI Startups? Johnny Ive's $6.5B Hire by OpenAI, Hiring Missionaries vs Mercenaries, TAM Reality CheckA $450 million AI startup just went bankrupt after lying about their revenue - and this might be just the beginning of the AI apocalypse.In this episode of Bricks, Bucks & Bytes, Owen, Martin, Dustin, and Patrick dive deep into the shocking collapse of Builder AI and what it reveals about the entire AI industry. From fraudulent revenue claims to human workers disguised as AI, this cautionary tale exposes the dark side of Silicon Valley's latest obsession.Key topics discussed:Builder AI's spectacular $450M bankruptcy and 25% revenue overstatementWhy 90-95% of AI...2025-05-301h 41Bricks, Buck$ And BytesWhy Data Centers Might Crash, Autodesk Alienates Christians, Y Combinator Predatory Practices, Paper Beats Digital, with Softbank's $100B Pledge"Data centers might be overbuilding. When industries overshoot, they always crash back to reality." - Dustin DeVan on our latest episodeIn today's episode of Bricks, Bucks and Bytes, we got to learn about the $500B "Stargate" project between OpenAI, SoftBank, and Oracle that's having trouble finding backers as data center costs rise.We got to hear why Autodesk's God-themed ad campaign shows they don't understand their construction customers, despite having amazing 91% profit margins. Also, we heard TestFit CEO Clifton Harness explain how their tools cut dirt costs from 30% to 20% on industrial projects...2025-05-161h 36Bricks, Buck$ And BytesFrom Shop Drawings to Smart Buildings: The Radical Innovation Strategy of a $200M Engineering Firm"We got in trouble with our own partners for investing in technology that disrupted OUR business. Some were actually 'pissed' because it threatened our design revenue."In today's episode of Bricks & Bytes, we had Robert Ioanna, Executive Principal of Syska Hennessy Group, sharing his innovative approach to construction tech investment and internal R&D.Tune in to find out about:✅ Their three-pronged innovation approach: external investments, internal R&D, and corporate ideation✅ How they gamify innovation with an internal point system that engages 20% of their firm✅ Why he believes MEP in...2025-05-151h 11Bricks, Buck$ And BytesHow China Builds Nuclear Plants Cheaper, Construction's $860bn Problem, Robotics in Solar & Trump 2.0 Germany EffectsEXPOSED: How China is Building Nuclear Power for 90% Less While the West Falls Behind"Every level that you move up the construction chain, you're saving 50 bips of interest. From capital provider to owner to GC to sub to supplier to manufacturer rep - seven, eight steps, 4%. That's why a million-dollar generator costs owners $1.7 million." - Mike Powers, BuildVisionIn this episode of Bricks, Bucks & Bytes, our hosts dive into why China can build nuclear reactors at a fraction of Western costs while the US and Europe struggle with massive delays and budget overruns....2025-05-091h 31Bricks, Buck$ And BytesConstruction Crash Coming - Our NEW Host, US Economy Contracts 0.3%, Trump Tariffs Hit Construction, Autodesk vs Procore Battle, AI, Biggest Construction Tech FailuresIs 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...2025-05-021h 33
AEC VC026 | Construction Tech Funding Hits $1 Billion in Q1 | Asia-Pacific Leads Market Share | BuildOps Reaches Unicorn Status | Robotics Cheat Sheet UnveiledAbout This EpisodePatric shares the impressive Q1 funding numbers for architecture, engineering, and construction technology, with the sector securing $1 billion in venture capital. The episode highlights shifting global market dynamics with Asia-Pacific and Europe showing stronger construction tech market share than North America, and celebrates significant funding rounds for several portfolio companies.In This EpisodeRecord-breaking construction tech investment analysis with $1 billion in Q1 funding, putting the sector on track for its third-highest annual total everSurprising global market shift as Asia-Pacific and Europe demonstrate stronger construction...2025-05-0102 min
Slice of Construction#42 - Patric Hellermann, General Partner at FoundamentalJoin us in this exciting episode of the Slice of Construction podcast, hosted by Jared S. Taylor! Our Guest: Patric Hellermann, General Partner at Foundamental.What you’ll get out of this episode:Patric Hellermann shares why Foundamental focuses solely on early-stage construction tech investments worldwide.Discover the regional tech bottlenecks from India’s supply chain to the U.S.'s fragmented software landscape.Learn why local “avatars” are critical and why copying successful models across geographies rarely works.Gain insight into Hellermann’s top investment areas: robotics, pre-construction efficiency, and new data infrastructures.Understand his philosophy...2025-04-2316 min
AEC VC025 | Compounding Optionality in ConTech | B2B vs B2C Marketplace Misconceptions | Leapfrogging Software Adoption | Strategic Data Infrastructure for AI ReadinessAbout This EpisodePatric Hellermann explores three critical concepts shaping the construction tech landscape: building businesses with compounding optionality instead of rigid long-term visions, the fundamental differences between B2C and B2B marketplaces in construction, and the opportunity for European contractors to leapfrog legacy software challenges through strategic data infrastructure implementation.In This EpisodePatric explains his formula for ConTech success: building real businesses that deliver immediate value while uncovering compounding customer optionality, versus starting with rigid 10-year visions that crumble under their own assumptions.A deep...2025-04-1706 minBricks, Buck$ And BytesVCs 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...2025-04-1143 min
AEC VC024 | The Future of European Capital | AI in Construction Design | Founder Selection Criteria | Finding Generational Companies in AECAbout This Episode In this episode, Patric discusses three key insights from his recent week: a major shift in capital allocation towards Europe, a compelling metaphor for understanding AI in construction tech, and his evolving criteria for identifying exceptional founders based on years of experience in the AECS industry.In This EpisodeTrillions of institutional investment capital moving into Europe signaling a potential new era of liquidity and dynamism for European startups and infrastructure. The revolutionary "water and bathtub" metaphor explaining why AI needs proper containment vessels like...2025-04-0809 min
Navigating Major ProgrammesPrimed for Disruption: Construction’s Internet 1.0 Moment with Patric Hellermann and Shub BhattacharyaWhat if the construction industry is on the brink of a transformation as significant as the rise of the internet? With construction representing a massive portion of global GDP and a growing demand for infrastructure, how can innovation meet the challenge of a shrinking skilled labor force?In this episode, Patric Hellermann and Shub Bhattacharya, co-founders of Foundamental and voices behind the Practical Nerds podcast, sit down with host Riccardo Cosentino to explain why they believe construction is the next major frontier for venture capital. They discuss how venture capital acts as a flywheel—fueling innovation, enabling fo...2025-04-071h 01Bricks, Buck$ And Bytes"Dolphin Founders" Outperform - Understanding Profitability Focus, Growth Timing, Capital Efficiency"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 $4.5M funding from Fundamental, bringing cloud manufacturing to the windows and doors industry in India.We got to learn about India's evolving investment landscape, with Western funds increasingly launching India-specific strategies rather than treating it as just another "emerging market."Also, we...2025-04-0451 min
AEC VC023 | Behind the Scenes of Construction Tech Investment | Timeless Substance vs. Trends | The PolarAbout This Episode
Patric shares three key insights that shaped his thinking last week in the construction tech investment space. He explores the importance of timeless substance over short-lived trends, the strategic advantages of being a "polar bear" investor versus following the herd, and presents a surprising perspective on what successful construction robotics companies might actually look like.
In This Episode
The critical difference between time-bound trends and timeless substance in construction tech Why the "polar bear mentality" creates strategic advantages for both investors and founders How successful construction robotics companies may focus on modular platform adoption rather than full...2025-03-3107 minBricks, Buck$ And BytesUS 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 $1B valuation.We also explored the structural differences between US and European contractor software markets, where European contractors are typically smaller and 5-10 years behind in software adoption compared to their US counterparts.Additionally, we gained insight into how fund size impacts investment strategy, with smaller VC f...2025-03-2841 minBricks, Buck$ And Bytes"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 $10 million seed funding for their AI-powered design platform that aims to automate electrical designs for buildings.We also learned about the ongoing debate between automated design platforms versus improved authoring tools, and which approach might ultimately capture more value in the MEP/S design space.Patric shared his investor's perspective that data infrastructure, authoring tools, and systems of record may be better investment targets than...2025-03-2142 min
AEC VC022 | AI Governance in Construction | Navigating the PropTech vs ConTech Debate | Balancing Storytelling and Substance in Startup GrowthAbout This EpisodePatric shares three key insights from his week in the construction tech space: a collaborative article on AI's impact in construction featuring insights from industry leaders, his perspective on the fundamental differences between PropTech and ConTech, and reflections from a conversation with an exited construction tech founder about the balance between storytelling and substantive business building.In This EpisodeInsights from industry leaders at Heidelberg Materials, Ferrovial, and Goldback on implementing AI governance frameworks that require CIO and CFO approval for new technology adoptionDeep dive...2025-03-2007 minBricks, Buck$ 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 $65B rework problem by creating AI assistants that help query unstructured data across different silos.Also, we learned about the...2025-03-1447 minBricks, Buck$ And BytesGermany'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 fo...2025-03-0755 min
AEC VC021 | Cloud Manufacturing in Construction | The Coca-Cola Blueprint | 7 Key Competitive Advantages for AEC Tech Startups | Focus vs. Diffuse Specialists | Tailoring Software for Construction UsersAbout This EpisodeIn this episode, Patric shares three valuable insights from his recent work in the construction tech sphere. He explores how cloud manufacturing in construction can learn from Coca-Cola's asset-light model, breaks down the top competitive advantages for construction tech startups, and analyzes the distinct user types in construction companies that software providers must address differently.In This EpisodeHow successful construction tech companies are adopting Coca-Cola's asset-light model to maintain brand control while outsourcing manufacturing and logisticsWhy structural cost advantages through technology enable construction tech startups to...2025-03-0505 min
Startup InsiderCheckpoint ConTech #6 – Europa vs. USA, Reneo, KI & Software in der BauindustrieWird Europa für Gründer und Investoren immer attraktiver als die USA? In dieser Folge von Checkpoint ConTech trifft Jan Thomas auf Enrico Mellis, Principal bei Lakestar, und Patrick Hellermann, Founding Partner bei Foundamental.Das Gespräch dreht sich um die wachsende Bedeutung europäischer VCs, die Auswirkungen politischer Unsicherheiten in den USA auf die Startup-Welt und die Frage, ob US-Startups vermehrt den europäischen Markt entdecken. Außerdem geht es um das Investment in Reneo, einem Unternehmen, das mit 600 Millionen Euro die Dekarbonisierung von Immobilien vorantreibt, sowie um die Herausforderungen und Chancen im Bausektor.Weit...2025-03-0336 minBricks, Buck$ And BytesReneo’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 $12M Series B funding for their AI-powered scheduling management platform that enhances project delivery across construction and other industriesPlus, we gained valuable insight into how successful construction tech comp...2025-02-2843 min
AEC VC020 | Maximizing Strategic Advantage in Construction Tech | Theta Decay Principles for Startups | Germany's Infrastructure Investment Boom | AEC Tech Internet Index UpdatesAbout This EpisodePatric shares insights on how construction tech startups can protect their competitive advantage by applying options trading principles, specifically Theta Decay. He explores Germany's potential infrastructure investment boom following elections and highlights key findings from the latest AEC Tech Internet Index.In This EpisodeHow Theta Decay from options trading creates a framework for startups to protect their competitive intelligence and maximize their unfair advantages in construction techWhy construction tech's quirky, nuanced market makes proprietary insights particularly valuable compared to more "Googleable" industriesAnalysis of Germany's cross-partisan support...2025-02-2505 minBricks, Buck$ And BytesBuilding 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 $22.5M in just two years.We discussed how emerging markets like Saudi Arabia present unique opportunities for construction tech marketplaces that wouldn't work in Western markets, due to their concentrated demand and fragmented supply.We also got fascinating insights from Patric on why having 1,100 suppliers...2025-02-2144 min
AEC VC019 | Scaling VC Knowledge in AEC Tech | Software Fatigue Warning Signs | Working Capital ROI Formula | Strategic Co-Investor SelectionAbout This Episode In this focused discussion, Patric Hellermann shares critical insights on emerging challenges in construction tech adoption and introduces Foundamental's strategic approach to evaluating AEC tech startups. The episode offers valuable perspectives on software implementation trends and working capital optimization in construction technology.In This Episode An eye-opening discussion about software fatigue in construction, highlighted by conversations with executives at major global contractors who are considering a hiatus on new software purchases - a potential emerging trend that could reshape technology adoption across the AEC industry...2025-02-1902 minBricks, Buck$ And BytesInvoice reconciliation, AI automation, Material data infrastructure & CFO-driven adoptionFrom 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 th...2025-02-1442 minBricks, Buck$ And BytesWhy European Construction Tech Could Outperform US Startups: A 5X Cost Advantage RevealedIn 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:2025-02-0733 min
AEC VC018 | Construction Tech's Perfect Storm | 96,000 New Dwellings Per Day | AI vs Traditional Software Value Creation | Hidden Opportunities in Category CreationAbout This Episode
In this insightful episode, Patric Hellermann explores three critical developments shaping the construction technology landscape in 2025. He delves into the massive demand-supply gap in construction, analyzes the evolving role of software and AI companies in value creation, and discusses the strategic framework for identifying non-obvious market opportunities.
In This Episode
Deep dive into construction's unprecedented growth trajectory, revealing the need to build one New York City equivalent monthly and construct 75% of 2050's infrastructure within the next decade
Comprehensive analysis of the growing labor crisis in...2025-02-0704 min
AEC VC017 | Strategic Startup Communications and Foundamental's 2024 Success StoryAbout This Episode
In this insightful episode, Patric shares three key observations from his experience as a construction tech venture capitalist. He discusses strategic considerations for startup announcements, the importance of non-linear founder experiences in construction tech, and provides a remarkable overview of Foundamental's performance in 2024.
In This Episode
Strategic timing and purpose of startup announcements in construction tech, emphasizing the importance of avoiding unnecessary exposure to competition during early funding stages.
The concept of non-linear founder experiences and their compound effect on building successful...2025-02-0503 minBricks, Buck$ And Bytes$32M Series B: How Stratus is Revolutionizing MEP Workflows"300 billion dollars for AI infrastructure in the next few years - but who will design and build it all?" - A thought-provoking insight from our latest conversation about the massive construction needs for AI's future.
In today's episode of Bricks, Bucks and Bytes, we learned about Stratus raising $32M Series B to revolutionize MEP contractors' digital workflows.
We explored how tech giants Microsoft, Amazon, and Google are planning to spend $300B on AI infrastructure construction, creating massive opportunities in the data center space.
Through Patric Hellermann's investor lens, we discovered why focusing on...2025-01-3144 minBricks, Buck$ And BytesFirst 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...2025-01-2432 min
AEC VC016 | Producing Fixed | Selling Variable CostsAbout This Episode
In this episode of AECVC, Patric Hellermann kicks off 2025 with a new weekly format discussing multiple key observations and data points in the architecture, engineering, and construction technology space. He covers three significant topics from the week, including an analysis of business models, Q4 2024 funding statistics, and web traffic trends in the AEC tech sector.
In This Episode
Understanding the advantage of variable cost business models in AEC tech, where companies can sell variable costs while maintaining fixed cost operations
Analysis of...2025-01-2203 minBricks, Buck$ And BytesThe Truth About 3D Printed Homes: A Deep Dive Into ICON's $450M TechnologyIs 3D printing concrete homes worth the $450M investment?
In today's episode of Bricks, Bucks and Bytes, we got to learn that despite being a $2B company, ICON's 3D printed homes only show a tiny 0.5% carbon advantage over regular timber construction.
We also explored why Q4 2024 was special for construction tech - it grabbed nearly 1% of all VC funding, the second-highest share ever. Even more impressive given that 2024 saw the lowest overall VC funding since 2014.
The most striking insight came from questioning the basics - why use concrete, a material best for large-scale...2025-01-1750 min
Startup InsiderCheckpoint ConTech #5 – Robotik und neue Geschäftsmodelle in der BauindustrieWie können Robotik und innovative Geschäftsmodelle die Bauindustrie revolutionieren? In dieser Folge von Checkpoint ConTech trifft Jan Thomas auf Enrico Mellis, Principal bei Lakestar, und Patrick Hellermann, Founding Partner bei Foundamental.Die Experten diskutieren, wie Robotik-Startups wie Monumental mit "Robotik as a Service"-Ansätzen Effizienz steigern und Risiken in der Bauindustrie minimieren. Dabei beleuchten sie auch, warum skalierbare Geschäftsmodelle mit variablen Kostenstrukturen so entscheidend für den Erfolg in kapitalintensiven Branchen sind. Ein weiteres zentrales Thema sind innovative Finanzierungslösungen wie Working-Capital-Modelle, die die Umsetzung technologischer Innovationen erleichtern.Weitere Themen:Branch...2025-01-1635 min
Archi-Tech NetworkEP 56 | The Global Investor in AEC Foundamental W/ Patric HellermannIn this video, we sit down with Patric Hellermann, Founding Partner at Foundamental, a venture capital firm specializing in investments in the AEC-Tech sector. Join us as we break down what VC firms do, the types of businesses they seek to invest in, and expert tips on how to successfully raise capital from a VC investor.
Patric Hellermann | / aecvc
Foundamental | https://www.foundamental.com/
LONDON BUILD EXPO | https://www.londonbuildexpo.com/event...
ATN HOST | Oliver Thomas | / olly____t
ATN MASTERCLASS | https://archi-tech.network00:00 Introduction
01:59 ATN Courses
02:25 Hello Patric
Enjoyed the video? Be sure to like, subscribe, and share for more insig...2025-01-121h 01Bricks, Buck$ And BytesBuilding a €450M Construction Tech Giant: How Philip Schröder's Marketing Built Germany's Latest Energy Tech Giant
"Your margin is my opportunity... unless you're selling outcomes in construction tech!"
In today's episode of Bricks, Bucks and Bytes, we explored 1KOMMA5°'s impressive €150M pre-IPO round and their unique approach of acquiring 30+ companies since 2021 to scale their energy tech business.
We also learned about an intriguing debate around whether companies can call themselves "market leaders" in Germany, sparked by a court case between 1KOMMA5° and their competitor.
The most fascinating insight came from Patric's take on fixed vs. variable costs in construction tech: Companies that produce with fixed costs but...2025-01-1059 minBricks, Buck$ And BytesBuilding a $1.6B Construction Tech Company in Australia - Lessons on Distribution vs Product"The construction tech founders obsess over product, but distribution might matter more."
In today's episode, we discussed about VisiBuild securing a $6.6M round from Skip Capital to improve construction quality checks - going beyond just turning paper into apps.
We also discovered why Australian construction tech punches above its weight, with just two companies (Aconex and Safety Culture) putting the country third globally in unicorns.
Most valuable was Shubhankar's take on why typical SaaS metrics might not tell the whole story in construction tech's early stages.
Tune in to learn:
2024-12-201h 01Bricks, Buck$ And BytesWhat We Learned After a Year of Talking to Construction Tech's Biggest Names"Follow the money to grow, follow your passion to build. While US construction tech startups have raised $30B, India's $1B investment is yielding better returns."
In today's episode of Bricks & Bytes, we did our November Monthly Review where we reflected on an action-packed month of content creation and exciting future plans.
We even explored fascinating market dynamics, founder insights, and geographic opportunities in construction tech.
Tune in to find out about:
✅ Our successful launch of the AI in Construction Report and first steps into monetization
✅ Highlights from our Boston trip...2024-12-131h 00Bricks, Buck$ And BytesRetrofitting Yellow Machines: The $250,000 Labor Cost Savings in ConstructionAre robots taking over construction sites? The future of "yellow machines" might surprise you.
In today's episode of Bricks, Bucks and Bytes, we got to learn about Teleo, a startup retrofitting heavy machinery for remote operation and semi-autonomous functionality.
We also explored the intriguing case of ServiceTitan's IPO plans, shedding light on the complex dynamics of venture capital and founder equity.
Additionally, we delved into the challenges and opportunities in automating construction equipment across various environments.
Tune in to find out about:
✅ The battle between full autonomy and teleoperation in...2024-12-0655 minBricks, Buck$ And Bytes156 Indian Companies Grew 20% Annually for 20 Years: What It Means for Construction Tech
Did you know that India has 156 publicly listed companies that have grown their revenue by over 20% annually for the past 20 years? That's more than the US, China, Japan, and Germany combined!
In today's episode of Bricks, Bucks and Bytes, we got to learn about the upcoming IPOs of Swiggy and BlackBuck in India, signaling a vibrant economy and thriving tech sector.
We also discovered that B2B marketplaces are flourishing in India, with BlackBuck's successful IPO setting a positive example for similar companies worldwide.
Additionally, we learned about the opening IPO...2024-11-291h 04Bricks, Buck$ And BytesCintoo's $37M Series B, Reality Capture Market Growth, Partech's Investment Strategy - How Cintoo Is Revolutionizing Reality Capture in Construction
Is the construction tech market becoming more obvious? Are we on the cusp of a tech IPO boom?
In today's episode of Bricks, Bucks and Bytes, we got to learn about Cintoo's $37 million Series B funding round led by Partech, signaling growing interest in reality capture and data compression for construction sites.
We also explored the potential for a surge in tech IPOs in 2025, as evidenced by Thrive Capital's rumored $1 billion investment in Databricks at a $55 billion valuation.
Additionally, we discussed the evolving landscape of construction tech investing, where specialist knowledge...2024-11-2252 min
AEC VC015 | AI in 3D CAD | The Energy BillAbout This Episode
In this thought-provoking episode, we dive deep into the energy costs and efficiency of AI-generated 3D models in architecture, engineering, and construction. Through detailed analysis and real-world examples, we reveal surprising findings about the energy consumption comparison between AI and human modelers in creating BIM and CAD models, with implications for the future of architectural design workflows.
In This Episode
Understanding everyday energy consumption benchmarks and their relation to AI model generation
Comparative analysis of energy costs for AI-generated 3D models across...2024-11-1413 minBricks, Buck$ And BytesHuman Touch in Construction Sales, False Tech Solutions, and Large Company Lawsuits - Bricks, Bucks & Bytes"Try to keep all your human touch points and automate them on the backend."
In today's episode of Bricks, Bucks and Bytes, we dive into the world of B2B marketplaces in construction. We explore why human touch points are crucial for success, especially in an industry built on trust and relationships.
We also discuss the recent lawsuit between Oracle and Procore, where Oracle accuses a former employee of stealing trade secrets related to payment management software.
Plus, we explored HomeBoost, a startup offering simplified energy assessments for homes using AI. But is...2024-11-0838 min
Startup InsiderCheckpoint ConTech #4 - 3D-Modelle in der Baubranche & Globale VC-MarkttrendsWas wäre, wenn alle Akteure der Bauindustrie in Echtzeit und nahtlos an denselben 3D-Modellen arbeiten könnten? In dieser Folge von Checkpoint ConTech trifft Jan Thomas auf die zwei Experten Enrico Mellis, Principal bei Lakestar, und Patrick Hellermann, Founding Partner bei Foundamental. Gemeinsam beleuchten sie das Londoner Startup Speckle, das die Zusammenarbeit in der fragmentierten Baubranche neu definiert und Ineffizienzen zwischen Architekten, Ingenieuren und Generalunternehmern mit einer bahnbrechenden Echtzeit-Kollaborationslösung löst. Das Startup erhielt kürzlich in einer Series A Runde 12,5 Millionen US-Dollar, von bisherigen Investoren wie Foundamental, Frontline Ventures, Matrix Partners und Foreword sowie dem Ein...2024-11-0137 minBricks, Buck$ And Bytes5 Things Founders Control During Fundraising That Most Don't Know About - Bricks, Bucks and Bytes"VC is rocket fuel. Do not spend it on a Fiat 500. Only put very expensive rocket fuel if you're actually building a rocket."
In today's episode of Bricks, Bucks and Bytes, we got to learn about Speckle's recent Series A raise, showcasing the renewed liquidity in early-stage funding for 2024.
We also discovered that the construction tech sector saw impressive growth in seed stage funding sizes during Q3 2023, signaling a positive shift in the market.
Plus, we gained invaluable insights from Patrick Hellermann on what really makes VCs tick when it comes to investing...2024-11-0149 min
AEC VC014 | The State of AECS-Tech in Q3 2024About This Episode
In this Q3 2024 funding analysis episode, Patric Hellermann breaks down the latest venture capital statistics for the AECS (Architecture, Engineering, Construction, and Supply Chain) technology sector. The analysis reveals that total VC funding has reached $35 billion (excluding Katerra, Vue, and Helio), with Q3 contributing $800 million despite being traditionally a slow quarter for investments.
In This Episode
AECS technology reaches $35 billion in total VC funding, showing resilience compared to broader VC market trends
Regional analysis reveals North America and APAC leading with 1% market...2024-10-2807 minBricks, Buck$ And BytesSpeckle's $12.5M Funding - How Open Source Software Is Changing Construction Design
Speckle's $12.5M Series A: A Game-Changer for AEC Data Infrastructure
In today's episode of Bricks, Bucks and Bytes, we got to learn about Speckle's impressive $12.5 million Series A funding round, led by Addition, to build the first data hub for the AEC industry.
We also learned about Rexel's rejection of an unsolicited $8.5 billion takeover bid from QXO, signaling potential shifts in the building materials distribution landscape.
Additionally, we gained insights into Patrick Hellermann's framework for evaluating potential investors, emphasizing the importance of avoiding detrimental influences over perceived value-add.
Tune...2024-10-251h 01Bricks, Buck$ And BytesConstruction Tech Funding Hits $35 Billion: What's Next?
From AI-powered construction sales to billion-dollar air taxi gambles: Inside the high-stakes world of tech funding!
In today's episode of Bricks, Bucks and Bytes, we got to learn about Building Radar's impressive €6.5 million funding round from Socii Capital, powering their AI-driven sales automation software for the construction industry.
We also dove into Fundamentals' Q3 update on AEC Tech funding, revealing that total cumulative VC funding for construction tech has hit a whopping $35 billion - triple the 2019 level!
Plus, we had a heated discussion about Lilium, the German air taxi startup se...2024-10-2047 min
AEC VC013 | Demand Shaping In ConstructionAbout This Episode
In this episode, we dive into the misconception surrounding standardization in construction. We explore why the common belief that construction should be more standardized overlooks the fundamental principle of demand shaping, drawing parallels with energy markets and the automotive industry to illustrate the concept.
In This Episode
Construction is already standardized at the smallest demand unit level
The importance of demand shaping in standardization across industries
Why modular and prefab construction face challenges in scaling
Lessons from energy markets and the...2024-10-1710 minBricks, Buck$ And BytesAI, Low-Carbon Cement, and the Missing Science VCs: Hidden Pitfalls in Construction Tech InvestingVenture capital flooding into AI startups, but are we overlooking the real breakthroughs in construction materials?
In this episode of Bricks, Bucks and Bytes, we explored Findable, a Norwegian startup transforming building documentation, which raised €9 million in Series A funding.
We discussed Holcim's investment in Sublime Systems' innovative low-carbon cement technology, sparking a conversation about sustainable building materials.
Also, we delved into a VC's perspective on the challenges faced by startups valued between $50-200 million in revenue but struggling to find exit opportunities.
Tune in to find out about:
✅ The p...2024-10-1151 minBricks, Buck$ And BytesEnscape's Journey From Idea To Exit - Moritz Luck, Co-Founder & CEOFrom garage startup to major exit: The Enscape story
In this episode, we had Moritz, co-founder of Enscape, and we got to learn about his journey from a university project to a game-changing 3D rendering software... and many more!
Tune in to find out about:
✅ How Enscape evolved from a VR treadmill idea to revolutionizing architectural visualization
✅ Why focusing on customer happiness trumps optimizing for investor metrics
✅ The power of community-driven marketing in the AEC industry
✅ The future of AI in rendering and its impact on existing tools2024-10-041h 04Bricks, Buck$ And BytesCan Small Modular Nuclear Reactors Solve Big Energy Problem? - Last Energy's $40M Bet on Energy IndependenceNuclear power's comeback? Last Energy raises $40M for micro modular reactors
In this episode of Bricks, Bucks and Bytes, we got to learn about Last Energy's $40 million Series B funding for developing 20 MWe micro modular nuclear power plants.
We also explored how nuclear energy fits into the broader energy landscape, including its role in providing baseload power for data centers.
Additionally, we delved into venture capital fund economics and the challenges of generating returns for large funds.
Tune in to find out about:
✅ The potential for modular nuclear reactors in...2024-09-2755 min
Bricks And BytesBuild a Real Business - Why 1% of a Huge Market Isn't EnoughNote: This is a repost from an episode released last month on Bricks, Bucks & Bytes.
"Building a f***ing business isn't about chasing 1% of a huge market."
In this episode, Patric Hellermann share insights on construction tech startups and investment strategies. We explored the evolving landscape of ERP solutions, 3D visualization software, and the pitfalls of lazy market assessments.
Tune in to find out about:
✅ Why targeting a small niche can lead to greater success
✅ The challenges facing new entrants in the...2024-09-2450 minBricks, Buck$ And BytesHow Starpath Robotics Plans to Mine Space Water From Moon- Is It Even Possible?Construction robots: From hot dogs to highways?
In this episode of Bricks, Bucks and Bytes, we explored how robotics is changing construction.
We learned about Starpath Robotics' plan to mine water on the Moon for rocket fuel. This could change how we explore space.
We also covered how construction companies are now more open to using robots. This is due to a lack of skilled workers.
Patric and Gabriele shared insights on investing in construction tech startups.
Tune in to find out about:
✅ Why robotics companies should st...2024-09-2058 min
AEC VC012 | My AEC Robotics Cheat SheetIn This Episode
Patric's framework for evaluating robotics companies in AEC, emphasizing capital efficiency and scalability
Key factors for success in AEC robotics: buyer readiness, success readiness, and recombination readiness
Ideal founder profiles and development processes for AEC robotics startups
Specific AEC segments that are prime for robotics innovation
Timestamps
(00:00) - Introduction to robotics in AEC
(01:08) - How I think about robotics in AEC
(07:38) - Excerpt from my AEC robotics framework
(12:35) - Examples of promising AEC segments for robotics
(14:28...2024-09-1918 min
AEC VC011 | The AEC-Tech Internet Index | September EditionHere's the podcast episode description based on the provided transcript:
## About This Episode
In this episode, Patric Hellermann introduces the AEC Tech Internet Index, a powerful tool for analyzing adoption trends in the architecture, engineering, and construction technology sector. This innovative index uses web traffic data as a proxy to gauge the growth and market presence of AEC tech companies, offering insights beyond traditional venture capital metrics.
## In This Episode
Explanation of the AEC Tech Internet Index and its methodology
...2024-09-1314 minBricks, Buck$ And BytesNew Scheduling Tools, US Startups High Failure Rate, & How Supply-Side Focus is Reshaping Tech CompaniesIs the traditional construction scheduling software about to become obsolete?
In this episode of Bricks, Bucks and Bytes, we discussed Planera's fresh take on construction scheduling, which just secured $13.5M in Series A funding.
We also explored the surprising uptick in US startup failures and what it reveals about the current market.
Additionally, we delved into the potential shift from demand-focused to supply-focused business models in tech.
Tune in to discover:
✅ How Planera aims to simplify complex construction scheduling
✅ Why more startups are failing, but it might not be...2024-09-0653 minBricks, Buck$ And BytesBillion-Dollar Blindspots: Are Construction Tech's 'Best' Lists Building on Quicksand?Is the construction industry building its future on a foundation of hype? Think again. The latest market maps and "best-of" lists might be leading you astray.
In this episode of Bricks, Bucks and Bytes, we explored McKinsey's updated report projecting a $22 trillion construction market by 2040, alongside the industry's looming labor crisis.
We discussed the expansion of the Bricks and Bytes podcast network, including new shows like "BitBuilders" focusing on robotics in construction.
Patric also shared his critical analysis of "best-of" lists and market maps in construction tech, revealing surprising insights about company success...2024-08-3058 minBricks, Buck$ And BytesThe Niche Domination Strategy - Why 1% of a Huge Market Could Kill Your StartupIs your startup targeting just 1% of a massive market? Think again. This common pitch strategy might be hurting your chances with investors.
In this episode of Bricks, Bucks and Bytes, we learned about Opus Flow's €1.7 million investment to boost their ERP solution for sustainable installers.
We also explored the 3D visualization market, discussing by 7.2 (formerly known as Apex Partners)'s investment in Lumion, a key player in AEC software.
Patric also shared valuable insights on building successful startups in crowded markets like construction tech.
Tune in to find out:
✅ Why f...2024-08-2350 minBricks, Buck$ And BytesWhy 2D Design Still Beat 3D & The Surprising Impact of AI on Architectural Firms and PricingIs the future of architecture in 2D, not 3D? Testfit founder's has got a surprising take…
In this episode of Bricks, Bucks and Bytes, we learned how TestFit grew from a weekend project to raising a Series A, changing how architects do feasibility studies.
We also discovered why small firms might replace big ones like Gensler, as AI changes how architecture works.
Patric shared why "outcome as a service" companies are shaking up the construction tech world.
Tune in to find out:
✅ Why 2D design might still beat 3D and...2024-08-1652 min
AEC VC010 | Grit & Stubbornness Look SimilarAs a VC, I often grapple with a crucial question: is this founder showing grit or stubbornness? In this article, I share my framework for evaluating persistence in AEC startups, emphasizing why learning and adaptability are key in our complex industry.
(01:15) Consistency vs. Adaptability
(02:26) Info Asymmetry Can Make It Hard To Diagnose
(04:00) Learning From Customer Truths
(05:00) … But AECS Makes Diagnosis Harder
(06:09) How To (Self-) Diagnose Grit or Stubbornness in Your AECS Venture
Last week, I met with five AEC founders. All were pushing hard, but I couldn't te...2024-08-1507 minBricks, Buck$ And BytesFencing - The Hidden Gold Mine in Construction Tech & Nexii's Surprising ComebackIs the fencing industry secretly one of the most profitable sectors in construction?
In this episode of Bricks, Bucks and Bytes, we learned about EverFence's $7.7 million Series A funding, showing strong interest in the fencing market.
We also discussed Nexii's attempt to relaunch after going into liquidation, highlighting the challenges in offsite modular construction.\
Plus, we got candid insights from Patric on why advice from generalist VCs might be hurting construction tech startups.
Tune in to find out:
✅ Why fencing companies can see up to 200% profit margins
✅ The...2024-08-0954 min
AEC VC009 | Print Homes With Concrete | Who Gets It?I'm skeptical about 3D concrete printing for homes. Despite major funding, I question its advantages over traditional methods and challenge founders to prove its value in residential construction.
(01:16) Spoken Plainly(02:51) When Is Concrete Used?(04:15) 3D Printing vs. Ready-Mix?(05:15) So It's The Automation?(06:22) Who Can Tell Me Why To Print Homes With Concrete?
I've been puzzled lately. 3D concrete printing for homes keeps attracting major funding. But I can't wrap my head around why.
Let's break it down.
The Trigger
Last week, I sa...2024-08-0208 minBricks, Buck$ And BytesUnicorns, Coast's $40M Raise, and $34 Billion in Construction Tech Funding - Why Headcount Growth Might Be MisleadingConstruction tech funding is booming, but is it all hype?
In this episode of Bricks, Bucks and Bytes, we learned about Coast's impressive $40 million Series B raise for their financial services platform in transportation.
We also got insights on the surprising growth in construction tech funding, reaching 0.53% of total venture capital.
Plus, we heard a critical take on using headcount growth as a measure of startup success.
Tune in to find out about:
✅ Why Coast is attracting big investment
✅ The unexpected trends in construction tech funding
✅...2024-08-0252 minBricks, Buck$ And BytesGUEST: Holobuilder’s Path To $34m Exit, Mo Akbari’s Journey Building The Pioneering Reality Capture ToolEver wonder how a startup goes from $8M to a big exit in construction tech?
In this episode of Bricks, Bucks and Bytes, we learned about HoloBuilder's journey from raising $8M to being acquired by Faro.
We also found out that despite big investments, the reality capture market still has room to grow. Companies like Cupix and Faro are leading, but there's space for new ideas in robotics and AI.
Plus, we got insights on how some VCs are betting on AI startups, hoping to find the next big winner.
Tune...2024-07-261h 16Bricks, Buck$ And Bytes€5.7M VC Bet To Retrofit Europe’s Housing Stock, "Pay What You Want" models and Nemetschek to India - Bricks, Bucks & BytesCould a "Cloud Installer" approach help insulate 30 million European homes faster?
In this episode of Bricks, Bucks and Bytes, we learned about Varm's €5.7M seed round for their innovative insulation business. They're using a "Cloud Installer" approach to scale across Europe.
We also discussed Nemetschek Group entering India's construction software market, starting with university partnerships.
Plus, Patric Hellermann shared why he's excited about Varm and his thoughts on "pay what you want" pricing for software.
Tune in to find out about:
✅ How insulation can cut energy costs by up to 4...2024-07-1952 min
AEC VC008 | The State of AECS-Tech (incl. Constru-Tech) in Q2 2024I just wrapped up my Q2 2024 analysis of AECS-Tech funding, and the numbers are too compelling not to share. This sector continues to defy expectations, showing remarkable resilience and growth in a challenging economic climate.
(01:03) Primer: What is the Scope of AECS-Tech
(02:16) AECS-Tech beyond $34B in VC Funding
(03:04) Quarterly Growth Remains since 2021
(04:13) AECS-Tech now at 0.53% of total VC (2x)
(05:24) Funding round sizes near All-Time Highs
(07:15) Healthy Distribution: Top 10 Deals = 34%
(08:35) No Change in Unicorns Last Quarter
Record-breaking funding
The...2024-07-1509 minBricks, Buck$ And Bytes€69M for Carbon Capture, Trimble Buys Flashtract & Why VC Success from Accelerators is Misleading - Bricks, Bucks & BytesIs raising venture capital really a sign of success for startups?
In this episode of Bricks, Bucks and Bytes, we explore Neustark's €69M growth round. We learn how they're making carbon capture a scalable industrial process, not just a scientific breakthrough.
We also dive into Trimble's acquisition of Flashtract, following similar moves by Autodesk and Procore. This trend is reshaping construction payment solutions.
Patric also shares some candid thoughts on startup accelerators and what really matters for success. Hint: it's not just about fundraising.
Tune in to find out about:
...2024-07-1244 minBricks, Buck$ And Bytes$1B Logistics Deal, $30M Saudi Tech Funding, and 3 Construction Market Insights: Gross Margin, Distribution & Impact Of Global Trade Shifts - Bricks, Bucks & BytesIs Saudi Arabia outpacing Silicon Valley in construction tech? A recent $30M funding round suggests so...
In this episode of Bricks, Bucks and Bytes, we explored Tendered's major Series A funding, signaling the Middle East's growing importance in construction innovation.
We also dissected a billion-dollar logistics acquisition that could reshape the industry's tech landscape.
Plus, we uncovered why gross margins might be the hidden key to startup success in construction.
Tune in to find out about:
✅ Why Saudi Arabia is becoming a hotbed for construction tech
✅ How glob...2024-07-0558 min
AEC VC007 | The P&L of the Construction IndustryHere's a revised short description for a Spotify podcast in first person singular:
I break down why the traditional SaaS model often falls short in construction. I'll dive into the industry's P&L, revealing why services trump software and how startups can tap into a market 50 times larger. I'll share insights on building trust, delivering outcomes, and succeeding in the unique world of AEC. Essential listening for founders and VCs in the construction tech space.
Chapters
(01:13) The herd heuristic: SAAS
(02:37) The 1st principle: AECS = outcome business
(04:14) Se...2024-07-0309 minBricks, Buck$ And BytesBONUS - How India’s FIRST Unicorn In Construction Tech Was Created – InfraMarket - with Shubhankar BhattacharyaFrom delivering concrete in Mumbai to becoming India's second-largest concrete supplier - how did InfraMarket do it?
In this episode, we had Shubh from Foundamental, an early investor in InfraMarket, and we got to learn about the unique challenges of the Indian market, InfraMarket's innovative acquisition strategy, and their journey to becoming a construction tech unicorn.
Tune in to find out about:
✅ How InfraMarket built trust by simply delivering on time in a market where that's not guaranteed
✅ The company's "outcome as a service" approach and its path to profitability
✅...2024-07-0354 minBricks, Buck$ And BytesWhy 70% Of Investors Have A Negative Impact On Your Startup And The Future Of Energy Assessments - Bricks, Bucks & BytesIs remote sales killing your construction tech startup? One founder learned it the hard way. By listening to an investor who had no idea.
In this episode of Bricks, Bucks and Bytes, we got to learn about Kelvin, a French startup using AI for home energy audits, which just raised 4.7 million euros.
We explored Turner & Townsend's latest construction cost survey, revealing cooling inflation across the sector.
Also, we delved into Vinod Khosla's controversial take that 90% of VCs add no value, with Patrick offering his candid perspective.
Tune in to find out...2024-06-2855 minBricks, Buck$ And BytesAI, EVs, IPOs and InfraMarket's Billion Dollars Valuation: What It Tells Us About Global Construction Trends - Bricks, Bucks & BytesFrom billion-dollar unicorns in India to America's EV infrastructure push, the landscape of construction is shifting fast.
In this episode of Bricks, Bucks and Bytes, we had Patric Hellermann exploring the complex world of construction tech, energy infrastructure, and global market trends. We dived into InfraMarket's success, the challenges of electrifying everything, and the future of AI in construction.
Tune in to find out about:
✅ InfraMarket's $2.5 billion valuation and plans to go public
✅ The hidden infrastructure challenges in the "Electrify Everything" movement
✅ Why China is leading the EV race and wh...2024-06-2154 min
The European VCOn investing in the recreation of the real world with Patric Hellermann, GP of FoundamentalIn this conversation, we explore the distinction between construction tech and prop tech, with a focus on the former. Construction tech is a project-based business that optimizes supply chains, while prop-tech is an operations-based business that focuses on real estate transactions and utilization. The conversation delves into:* The different segments within construction tech, including architecture, engineering, construction, and supply chain technology. * The importance of outcome-based business models. * The role of AI and data infrastructure in the construction industry. The conversation concludes with an analysis of the funding trajectory of...2024-06-111h 19
EUVCVC | E325 | On investing in the recreation of the real world with Patric Hellermann, GP of FoundamentalIn this conversation, we explore the distinction between construction tech and prop tech, with a focus on the former. Construction tech is a project-based business that optimizes supply chains, while prop-tech is an operations-based business that focuses on real estate transactions and utilization. The conversation delves into:The different segments within construction tech, including architecture, engineering, construction, and supply chain technology.The importance of outcome-based business models.The role of AI and data infrastructure in the construction industry.The conversation concludes with an analysis of the funding trajectory of construct tech and its potential for future growth. Andreas and...2024-06-111h 19
AEC VC006 | Thesis: Warehousing For ConstructionIn this episode, I dive into an overlooked opportunity in the construction industry: Warehousing. Is there potentially space (pun) to build a generational company, or not?
I explore why construction is fundamentally a supply chain business and how the lack of just-in-time logistics leads to operational and commercial issues on job sites. Leading to a first principles need for buffering in this complex, interdependent industry, as manufacturers and 3PLs aren't stepping up to fill that buffer role.
Finally, I put forward a to-be-validated thesis for entrepreneurs by providing off-site warehousing and just-in-time delivery to contractors.2024-06-0510 min
AEC VC005 | Outcome-As-A-ServiceIn this episode of the AEC_VC podcast, I dig into the concept of "outcome-as-a-service" - a business model that is enabling a new breed of startups to build massive companies in the architecture, engineering, construction and supply chain sectors.
I explain how outcome-as-a-service differs from SaaS, targeting huge cost centers by guaranteeing project results vs just providing tools. I lay out the attributes of companies winning with this model, from how they align with project budgets and buying processes, to how they leverage technology behind the scenes to deliver an end service.
2024-05-1512 min
Startup InsiderCheckpoint ConTech #3 - B2B-Marktplätze in der KonstruktionsbrancheWie funktionieren B2B-Marktplätze in der Konstruktionsbranche? In diesem Monatsrückblick Checkpoint ConTech analysieren die Experten Enrico Mellis und Patric Hellermann die wichtigsten Themen rund um Renovierungen, Workforce-Management, Supply Chain, Logistik sowie fortschrittliche 3D- und computergestützte Design-Technologien. In der neuen Ausgabe konzentrieren sie sich speziell auf das Potenzial von Marktplätzen in der Baubranche und wie sich diese in verschiedenen Teilen der Welt entwickeln.Sie erläutern das Konzept von B2B-Marktplätzen, die speziell für die Baubranche entwickelt wurden, und wie diese Plattformen die Effizienz durch die Digitalisierung von Lieferketten und den Handel mit Bau...2024-05-1445 min
AEC VC004 | Hidden in Spite of ObviousIn this episode of my AEC_VC podcast, I share my "Hidden in spite of obvious" framework for identifying contrarian investment opportunities in the architecture, engineering, and construction (AEC) sectors. I discuss how the most promising early-stage companies I invest in often pursue ideas that are obvious to industry insiders but remain hidden from outsiders. I emphasize the importance of seeking strong signals, such as customer adoption and cash flow, rather than vanity metrics like fundraising hype. I also encourage founders to develop a deep understanding of the industry's nuances to spot these hidden gems. Tune in to learn...2024-05-0812 min
AEC VC003⎢A New Infrastructure Platform Titan?In this podcast episode I talk about the following topics:
• My take on Schneider Electric's reported $16 billion acquisition of Bentley Systems
• My views on the rise of "infraplatform" titans combining design software and operational platforms
• The massive global infrastructure upgrade cycle that I believe is driving this strategic rationale
• The bold thesis I see of controlling authoring to dictate infrastructure hardware choices
• The risks I foresee around integration, valuation, and executing this mega-merger of contrasting assets
Timestamps:
(03:20) Design software for infras...2024-04-2316 min
AEC VC002 | The Macro Thesis No One SeesIn this episode, I share my unique macro thesis on the AEC (Architecture, Engineering, Construction) technology space. Key highlights include:
The distinction between "real world" AEC tech versus property tech, and why the fundamentals of each are vastly different
How AEC tech is thriving counter-cyclically, with funding tripling since 2021 and 6x growth over the past 5-6 years
The universal pattern I've observed across sectors - once a space hits $5 billion in VC, it typically reaches $50 billion in 6-8 years
The critical importance of building robust data infrastructure as the foundation for unlocking the next wave...2024-04-1209 min
AEC VC001⎢1.5 years later: My insulation thesisToday, we revisit our very first topic on AEC_VC, cavity insulation in Europe, with a fresh perspective. After 18 months, our backtesting confirms: this insulation opportunity has an outstanding market potential and exceptional margins and cash flows. It has shown me that it can support the next AEC unicorn.
Flashback: The insulation opportunity
A $100 billion market
Exceptional margins and cash flows available
Highly standardizable and repeatable
The end game: Cloud installation as an infrastructure
All content >> https://aecvc.com/2024-04-0508 min
Bricks And BytesBBBC 30/03/24 - Ediphi's $12M Raise, Pre-Construction Opportunities, and Market DominationWelcome to the Bricks & Bytes Broadcast (BBBC) with Patric Hellermann of Foundamental.
This 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.
-----------------------
In this episode, Patric discusses the underserved areas in ConstruTech, including common data environments, on-site robotics, and the pre-construction space.
2024-03-3023 min
Bricks And BytesBBBC 22/03/24 - $31m Dollars, 20x Revenue Growth and Straight Outta Y Combinator - PermitFlow & FurnoWelcome 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.
-------
In this conversation, Patric, Martin and Owen discuss two startups: PermitFlow and Furno.
They talk about the challenges faced by Perm...2024-03-2325 min
Bricks And BytesHow To Build A Unicorn In Construction Tech - Patric HellermannIn today’s episode, we have Patric Hellermann, General Partner at the largest global early stage investor in construction technology - Foundamental.
Patric explains the 30bn opportunity in construction tech, the past and future models of unicorns, and how VC in the world of construction operates.
Tune in to find out about:
How VC funding in construction tech is defying the recession-hit VC ecosystem, showcasing opportunity and resilience unlike other sectors
The existing and future models of unicorn construction tech startups
What shapes the VC world in construction; fr...2024-03-011h 42
Digitaler Unternehmermut#73 Tech im Bau: "Da sein, wo der Blitz einschlägt" – Patric Hellermann – Foundamental [Innovation Club]Der Fonds Foundamental ist fokussiert auf digitale Innovation im Bausektor, investiert dabei global und glaubt an die Automatisierung der Lieferketten in der Baubranche
Digitaler Unternehmermut gibt es als Podcast, Live-Event und als Innovation-Club -> Wenn ihr nichts davon verpassen wollt meldet Euch hier an: https://digitalerunternehmermut.de
Foundamental: https://www.foundamental.com
Patric Hellermann: https://www.linkedin.com/in/hellermann/
Die Themen mit Patric Hellermann im Überblick:
(01:40) Kurze Frage-Antwort-Einschätzung zu Foundamental
(06:37) Was macht Patric persönlich aus und wieso ist Foundamental im Bausektor tätig
(11:05) Was ist seine Faszination an der Baubranche?
(12:13) Wiev...2022-08-0952 min
DIGITALWERK PodcastInvestments im Bausektor: Foundamental, Patrick Hellermann (#45)Foundamental VC investiert erneut bei der $180 m Finanzierungsrunde des Construction-Tech Startup Tul (https://tul.com.co/).
Ist solch ein Deal auch in Deutschland denkbar? Patric Hellermann ist Co-Founder und General Partner des Foundamental VC und hat zu diesem Thema mit Michél-Philipp Maruhn in der aktuellen Folge des DIGITALWERK Podcast gesprochen. Der 2. Fond steht mit €73 Mio. für Investments in Startups, welche einen Fokus auf die Immobilien-, Handwerks- und Baubranche haben bereit.
2022-02-1533 minReal Estate Network – Deutschlands grösstes Immobilien-Podcast-Netzwerk - mit Alexander Schmid von IRECCDIGITALWERK Podcast: Investments im Bausektor: Foundamental, Patrick Hellermann (#45)Foundamental VC investiert erneut bei der $180 m Finanzierungsrunde des Construction-Tech Startup Tul (https://tul.com.co/).
Ist solch ein Deal auch in Deutschland denkbar? Patric Hellermann ist Co-Founder und General Partner des Foundamental VC und hat zu diesem Thema mit Michél-Philipp Maruhn in der aktuellen Folge des DIGITALWERK Podcast gesprochen. Der 2. Fond steht mit €73 Mio. für Investments in Startups, welche einen Fokus auf die Immobilien-, Handwerks- und Baubranche haben bereit.
2022-02-1533 min
AEC Tech Journeys with Mayur MistryL62 - Patric Hellermann - Investment Framework for AEC Tech StartupsInvestment Framework for AEC Tech Startups2021-12-261h 01
BAUTALK - so machen wir das.Investments und Startups - BAUTALK mit Foundamental - Patric HellermannIn Folge 07 treffen wir Patric Hellermann von Foundamental. Es handelt sich um ein Unternehmen im Bereich Venture Capital oder Risikokapital speziell für die Baubranche. Foundamental ist international tätig und gibt im BAUTALK Einblick in die Investment-Szene. Zudem werden Chancen aufgezeigt und was Deutschland von internationalen Märkten unterscheidet. Foundamental findet Ihr unter http://www.foundamental.comZudem empfiehlt Patric im Podcast das Unternehmen Flinkit: http://www.flinkit.deLeider haben wir anfänglich eine kurze Passage mit einer leichten Tonstörung durch das Netz. Ihr wisst jetzt Bescheid!BAUTALK by BIRCOimpuls - all...2021-08-0324 min