More contech deals, fewer dollars mark 2024’s first half


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Dive Brief:

  • Investment in construction technology dipped slightly during the first half of 2024, totaling about $1.23 billion, a 1.6% drop compared to the same period in 2023, according to a quarterly report from Cemex Ventures, the contech-focused venture capital arm of Madrid-based Cemex.
  • Despite the decline in investment dollars, the number of deals surged by 18% year-over-year, indicating sustained interest and activity in the sector, according to the report.
  • North America led the world in contech funding, receiving about 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.

Dive Insight:

The total number of deals in the first half of 2024 reached 145, almost a fifth more than in the first half of 2023. 

That momentum continued to grow over time, as the number of second quarter deals jumped 20% compared to the first quarter, according to the report.

In other words, while investors may be more cautious with their capital, they are still actively seeking out promising startups and technologies. 

Four contech categories

The report groups companies into four primary focus areas: green construction, enhanced productivity, construction supply chain and construction’s future.

Green construction emerged as the dominant sector in the second quarter, capturing about 35% of total investment. The category includes technologies for carbon capture, water efficiency, alternative fuels, new energy resources and sustainable materials. Notably, investment in green construction continues to grow significantly, driven by increasing competitiveness to adopt sustainable practices, according to the report.

Enhanced productivity followed closely with 30% of overall investment. The category includes solutions like geotechnical analysis, BIM, digital twins and health and safety tools.

The other categories, construction supply chain and construction’s future, captured 20% and 15% of the total investment, respectively, according to the report.

Compared to the first quarter, the second quarter showed a more uniform distribution of investments across all areas. For example, in the first quarter, enhanced productivity led all categories followed by green construction. But in the second quarter, investors spread capital more evenly across the board, according to the report. 

Here were the top three deals in the second quarter:

  • Infra.Market, a building and construction materials supplier based in India, closed a $50 million funding round from Mars Unicorn Fund at a $2.5 billion valuation.
  • Chevron Corp. led a $45 million Series A financing round for ION Clean Energy, a Boulder, Colorado-based carbon capture firm.
  • AssetWatch, a Westerville, Ohio-based company focused on condition monitoring and predictive maintenance, closed a Series B financing round of $38 million.



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