A recent report from Jones Lang LaSalle Inc., Chicago, shows during just the first half of the year, investments in construction technology have surpassed last year's total amount by 30 percent, according to www.constructiondive.com.
Spending in the construction technology segment reportedly is outpacing overall tech startup investment growth in the U.S. The report states: "It's no mere accident that this uptick in [construction technology] investing coincides with an industry plagued by cost fluctuations, labor shortage issues and overall lack of productivity improvements—creating what many venture capitalists view as a prime opportunity for disruption."
Construction technology-focused startups will receive funding through about 120 deals by the end of the year.
Collaboration software and project management purveyors account for about 112 construction technology startups, followed by about 50 firms focused on off-site techniques and nearly 40 mobile-centric startups.
Three startups valued at more than $1 billion—Katerra, Uptake Technologies and Procore Technologies—are in the top five construction technology startups in terms of amount of funding received, at $1.1 billion, $287 million and $180 million, respectively.
The report states: "Off-site construction, cloud-based software and new, tech-focused hardware are capturing the largest investor dollars and customer bases. Artificial intelligence and big data solutions are a close second but are positioned to make even larger impacts."