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Dive brief:
- Austin, Texas-based investment firm Ironspring Ventures, which targets industry-focused startups including construction technology companies, unveiled its $100 Million Fund II end of last month.
- The venture capital business, which was founded in 2020, announced the new cash fund after its $61 million Fund I from 2020, which used to invest in 16 companies in its portfolio, according to the statement . It plans to invest in 20 startups with Fund II, at a rate of four to five companies per year, Stephanie Volk, head of platform at Ironspring, confirmed to Construction Dive. Volk said the usual size of the company’s check in startups it is between 2 and 4 million dollars.
- Ironspring created Fund II because of what it called “desorbed material prices, skilled labor shortages, infrastructure stagnation, supply chain outages and clumsy legacy operating systems,” according to the press release. The company says it is in a unique position to understand the problems facing the industry and to evaluate startups based on how they can tackle those problems.
Diving knowledge:
The investment firm commits money to companies throughout the design-build lifecycle, Ironspring co-founder Adam Bridgman told Construction Dive in an email. The VC is particularly focused on automation solutions for commercial, industrial and infrastructure construction.
“These are complex and fragmented supply chains that challenge systems and data interoperability and effective collaboration between multiple players,” Bridgman wrote. “When you add the current skilled labor crisis to this environment, it creates a sense of urgency to help builders do more with less through technology.”
With the launch of the second fund, Ironspring will inject capital into four startups in the manufacturing and supply chain logistics spaces, according to the announcement. They are:
- Goodship, a Nashville, Tenn.-based AI-powered freight orchestration platform that enables users to monitor distribution networks with built-in performance analytics.
- Base Power, an Austin-based company that provides battery backup services and a monthly power deal for customers in the Lone Star State while promoting clean energy.
- Wilya, a New York City-based software solution that helps manufacturers manage existing workers and build flexible, on-demand talent pools.
- Cargado, a Chicago-based platform that claims it will help provide greater transparency, engagement and security for cross-border logistics.
Among the 16 companies that Ironspring supported in its first fund, three startups from the construction sector stand out:
- Document Crunch, an Atlanta-based startup offering a generative AI-based solution for contract management. It has a chatbot that can answer the contract questions.
- manage, an end-to-end solution that manages credit and payment rights for contractors. The San Francisco company works with both material suppliers and contractors to smooth the payment process.
- join in, an Oakland, California-based company that documents and tracks early construction phase planning decisions for the entire team. It also provides cost information and allows input from all sides of the spectrum, from homeowners to builders and designers.
The new fund arrives just as Contech funding plunged 44% year-over-year to $3 billion in 2023, down from $5.4 billion in 2022, according to Cemex Ventures, the technology-focused venture capital arm of Madrid-based Cemex. However, the company predicted that the first half of 2024 would see the stabilization of the industry, which has at least partially remained: investment in the space. grew 20% year over year for the first quarter of 2024 at $672 million, according to a report by Cemex Ventures.
