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Dive brief:
- Suffolk Technologies, the venture capital arm of Boston-based contractor Suffolk Construction, has closed its sixth BOOST technology accelerator through its Demo Day, where eight selected startups presented their products to an audience of investors, experts and stakeholders, according to a Nov. 20 press release.
- BOOST, which Suffolk launched in 2020, has graduated 38 participants, including Trunk Tools and Kaya AI, which have raised more than $700 million in funding, according to the press release. Solutions range from artificial intelligence, prefabrication and robotics to materials science.
- This year, Suffolk drew on its network of 55 partner organizations to give companies access to customers, pilot projects and investors, as well as experience in active Suffolk workplaces. Of those 55, 28 were construction companies, and 10 of those conducted a pilot test on an active job site with one or more BOOST members, according to a Suffolk spokesman.
Diving knowledge:
The BOOST 6 cohort includes:
- ARKI (Canada): A design system that helps architecture and engineering firms complete projects 50% faster by leveraging past data.
- Cyphra Autonomy (Fenton, Missouri): A robotic material movement solution that uses automated wagons adapted to the built environment to allow crews to focus on higher value activities.
- Dig Energy (Manchester, New Hampshire): A geothermal drilling technology that claims to be more cost-effective, compact and thermally efficient than traditional equipment.
- Hard Line (Los Angeles): A voice-first call transcription and documentation solution that captures decisions made over the phone for construction crews.
- MOD (Switzerland): A platform that assesses the potential of prefab in architectural designs and organizes supply chain opportunities to accelerate the adoption of prefab.
- Neuron Factory (Redwood City, California): An AI companion platform for preconstruction data to optimize workflows, increase accuracy, and deliver better results in estimating and planning.
- Material gold (New York): The company produces ultra-strong, fire-resistant composites made from captured carbon dioxide.
- Puppet Robotics (San Francisco): A semi-autonomous robotic arm that keeps workers safe while working at height with an emphasis on maintaining human precision and control.
All BOOST participants receive $100,000 a SAFE post-moneyor a simple deal for future equity, in exchange for a 3% equity stake in the company, according to a Suffolk spokesman. The mechanism allows an investor, in this case Suffolk Technologies, to invest in a company and have a specific percentage of ownership when the money is converted into shares.
In addition, Suffolk Technologies also receives the right to invest in the companies’ next qualified financing rounds up to 20% of the securities offered, according to the spokesperson.
This year’s Demo Day comes during a key time for the contech ecosystem. As builders become more technologically advanced, others join the technological fray investing in the startups themselves. Series B deals, for example, are increasing in the contech space as established companies continue to mature.
AI is a big driver in this space, which Suffolk has been keeping an eye on for the past year. Last December, Jit Kee Chin, Suffolk’s chief technology officer, predicted that rubber would hit the road as AI started to take off in the construction sector. Although this has been developed to some extent, other contractors are still slow to adopt technologyalthough they recognize the benefits of technology.
