{"id":28778,"date":"2025-01-27T11:47:28","date_gmt":"2025-01-27T19:47:28","guid":{"rendered":"https:\/\/essential.construction\/news\/following-sharp-downturn-contech-funding-stabilizes\/"},"modified":"2025-01-27T11:47:28","modified_gmt":"2025-01-27T19:47:28","slug":"following-sharp-downturn-contech-funding-stabilizes","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/following-sharp-downturn-contech-funding-stabilizes\/","title":{"rendered":"Following sharp downturn, contech funding stabilizes"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">5 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"http:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1737748305\/news\/text_to_speech\/contech-funding-trump-infrastructure_eaopfe.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Brief:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>Following a 44% downturn <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/contech-funding-plummets-in-2023-despite-more-deals\/705790\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>in construction technology investment<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in 2023, the contech funding ecosystem seems to have stabilized last year, according to a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.cemexventures.com\/top-50\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>report from Cemex Ventures<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Total investment in the space grew marginally year over year, up 2% from $3 billion in 2023 to $3.1 billion in 2024, according to the report from the contech-focused venture capital arm of Monterrey, Mexico-based building materials firm Cemex<strong>.<\/strong> <\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>However, data indicated that investors were much more active in 2024 \u2014 investors and startups in the sector completed 325 deals in 2024, compared to 236 deals in 2023.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Insight:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Construction also continues to grow as a total share of the overall venture capital market, according to the report. <span>Contech<\/span> made up more than 1.1% of total VC spend in 2024, compared to 1.06% in 2023 and 0.6% in 2019.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Cemex Ventures broke down its 2024 funding analysis into four categories:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<ul>\n<li><span><span><span><strong><span><span>Enhanced productivity: <\/span><\/span><\/strong><\/span><\/span><\/span><span><span><span><span><span><span>Programs and offerings that help with fields such as project design and budgeting, digital twins and BIM, asset maintenance and tools that use artificial intelligence, raised approximately $1.5 billion.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><strong><span><span>Green construction:<\/span><\/span><\/strong><\/span><\/span><\/span><span><span><span><span><span><span> Processes, products and services that help mitigate construction\u2019s negative environmental impacts, including carbon capture and sustainable materials, garnered approximately $772 million.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><strong><span><span>Future of construction: <\/span><\/span><\/strong><\/span><\/span><\/span><span><span><span><span><span><span>Products and platforms that shape the future of the industry, such as robotics, 3D printing and optimized materials manufacturing, reeled in approximately $535 million.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><strong><span><span>Construction supply chain:<\/span><\/span><\/strong><\/span><\/span><\/span><span><span><span><span><span><span> Programs and offerings that help contractors manage their supply chains, including marketplaces, materials tracking and last-mile platforms, attracted approximately $231 million.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span><span><span><span><span><span>Notably, three of the categories experienced year-over-year declines in investment funding. Only enhanced productivity firms raised more money than in 2023,\u00a0more than doubling the subsector\u2019s year-over-year funding total.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><span><span><span>AI on the rise<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>The category benefited from a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/ai-arms-race-builders-construction-2025\/736685\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>brewing AI arms race<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> that has contractors moving quickly to adopt the technology to stay ahead of the curve and garner an advantage over their peers in the marketplace. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Cemex Ventures\u2019 report noted that while 2024 was a strong year for AI, 2025 promises to take the race even further. The tech accounted for <\/span><\/span><\/span><\/span><\/span><\/span>28% of transactions in 2024 and 37% of total contech deal volume, according to the report.<\/p>\n<p>\u201cWe predict these driving trends will become more pronounced by the end of 2025,\u201d the report said. \u201cThe transition will be gradual as companies increasingly adopt AI-driven capabilities to strengthen their competitive edge.\u201d<\/p>\n<p><span><span><span><span><span><span>Geographically, North America remains the largest player in the contech ecosystem, according to the report. In 2024, the region generated almost 46% of investment dollars and nearly 56% of all deals. When combined with Europe, the two areas account for nearly 85% of investment.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Going forward<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>A question mark for the future, the report said, would be how much the new, Republican-led U.S. government will affect the industry\u2019s performance. The report noted there is room for optimism, as the study\u2019s authors anticipate economic progress and tailwinds from lower tax rates and policy reform that could counterbalance potential headwinds.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But Gonzalo Galindo Gout, head of Cemex Ventures, said that there isn\u2019t a clear correlation between presidents and the contech ecosystem. Instead, it would fall to how President Donald Trump promotes economic activity in areas such as infrastructure, which would boost construction.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201c[There are] plenty of questions in the next three to four months of how this will play out overall,\u201d Galindo Gout told Construction Dive.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Trump has been quick to make moves that could impact U.S. builders. On Jan. 21, Trump announced a plan by a joint venture among tech giants OpenAI, Softbank and Oracle, to invest <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/ai-arms-race-builders-construction-2025\/736685\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>$100 billion in AI infrastructure<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> that could scale up to $500 billion by the end of his second term.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>However, Trump also said that he <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.supplychaindive.com\/news\/trump-tariffs-feb-1-china-canada-mexico\/737965\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>plans to establish a flat, 10% tariff<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> on China-based imports, along with a 25% tariff on Canada and Mexico, as early as Feb. 1. Contractors have told Construction Dive they\u2019re <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/trump-tariffs-construction-projects\/735566\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>bracing for the economic impacts of the tariffs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, which could cause disruptions, shortages and cost increases in the industry.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/contech-funding-trump-infrastructure\/738063\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 5 min This audio is auto-generated. Please let us know if you have feedback. Dive &#8230; <a title=\"Following sharp downturn, contech funding stabilizes\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/following-sharp-downturn-contech-funding-stabilizes\/\" aria-label=\"Read more about Following sharp downturn, contech funding stabilizes\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-28778","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/28778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=28778"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/28778\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=28778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=28778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=28778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}