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Dive Brief:
- Construction technology investment declined slightly in the first half of 2024, totaling about $1.23 billion, down 1.6% compared to the same period in 2023, according to a quarterly report from Cemex Ventures, the technology-focused venture capital arm of Madrid. Cemex.
- Despite the drop in investment dollars, the number of transactions increased 18% year-over-year, indicating sustained interest and activity in the industry, the report said.
- North America led the world in contech funding, receiving around 55% of investment in the second quarter, continuing a trend established over the past year. Europe followed with 30%, while Asia and Oceania accounted for 13%, according to the report.
Diving knowledge:
The total number of operations in the first half of 2024 reached 145, almost a fifth more than in the first half of 2023.
This momentum continued to grow over time, as the number of deals in the second quarter increased by 20% compared to the first quarteraccording to the report.
In other words, while investors may be more cautious with their capital, they are still actively looking for promising startups and technologies.
Four contech categories
The report groups companies into four main focus areas: green construction, productivity improvement, construction supply chain and the future of construction.
Green construction emerged as the dominant sector during the second quarter, capturing around 35% of total investment. The category includes technologies for carbon capture, water efficiency, alternative fuels, new energy resources and sustainable materials. In particular, investment in green construction continues to grow significantly, driven by increased competitiveness to adopt sustainable practices, according to the report.
Productivity improvement followed closely at 30% of the total investment. The category includes solutions such as geotechnical analysis, BIM, digital twins and health and safety tools.
The other categories, construction supply chain and the future of construction, captured 20% and 15% of the total investment, respectively, according to the report.
Compared to the first quarter, the second quarter showed a more even distribution of investments in all areas. For example, in the first quarter, improving productivity led all categories, followed by green building. But in the second quarter, the report said, investors spread capital more evenly across the board.
Here are the three best deals of the second quarter:
- Infra.Market, an India-based building and construction materials supplier, closed a $50 million funding round from Mars Unicorn Fund at a valuation of $2.5 billion.
- Chevron Corp. led a $45 million Series A funding round for ION Clean Energy, a Boulder, Colorado-based carbon capture company.
- AssetWatch, a Westerville, Ohio-based company focused on condition monitoring and predictive maintenance, closed a $38 million Series B funding round.
