Development know-how is a rising sector, which is why Brick & Mortar Ventures has raised a $97 million fund to spend money on each and software program for construction-related industries.
The San Francisco enterprise fund was based by development tech funding veteran Darren Bechtel and is backed by high-profile company funding sources.
The fund targets rising corporations growing progressive software program and options for the industries of structure, engineering, development, and services administration. The agency has already invested in 16 corporations via an earlier fund.
Bechtel, who serves as managing director, has been investing private capital into Constructed World know-how startups since 2012, starting along with his contribution as the most important investor in a seed spherical for PlanGrid (acquired by Autodesk in November 2018 for $875 million).
“We’re excited to formally announce our first institutional enterprise capital fund and publicly introduce our company strategic traders and companions,” mentioned Bechtel in a press release. “Whereas angel investing throughout all kinds of verticals, I noticed that out of my portfolio of roughly 40 corporations, the Constructed World investments had been standout performers and the beginning of a bigger development.”
Picture Credit score: Brick & Mortar Ventures
He added, “Whether or not by good instinct, pure luck, or one thing in between, my first 4 development tech investments had been into the seed rounds of PlanGrid, BuildZoom, BuildingConnected, and Rhumbix. The fast progress, impression, and early success of those corporations strengthened my conviction there was ‘gold in them hills’ and now was the time to speculate and double down on our constructed world tech funding thesis.”
Brick & Mortar’s cash got here from powerhouses within the development worth chain, together with Ardex, Autodesk, Cemex, Ferguson Ventures, FMI, Glodon, Haskell, Hilti, Obayashi, Sidewalk Labs, and United Leases.
Such organizations get pleasure from a strategic relationship with the Brick & Mortar staff so that every is ready — if it chooses — to share info regarding challenges its group faces; collaborate on alternatives it sees; and discover rising know-how options that is perhaps obtainable for proof-of-concept pilots, codevelopment, or industrial use.
The Bechtel Group — a 120-year-old multinational engineering and development agency based by Darren’s great-great-grandfather and run immediately by his brother, Brendan Bechtel — shouldn’t be an investor in Brick & Mortar or any of its portfolio corporations. Nonetheless, as a consequence of Darren’s familial and previous skilled relationship with Bechtel, Brick & Mortar considers the corporate a most well-liked accomplice, together with its anchor traders.
These companions work with Brick & Mortar to determine challenges, discover options, and contemplate the advantages supplied by early-stage corporations, whether or not or not Brick & Mortar is an investor within the startup in query. Along with the person help and partnership between the agency and every Most popular Trade Accomplice, Brick & Mortar facilitates knowledge-sharing and direct collaboration.
“We’re excited to be a Restricted Accomplice of Brick & Mortar and help their efforts to speed up promising startups which can be growing built-for-purpose options for the development ,” mentioned Kevin Barnes, managing director at Ferguson Ventures, in a press release. “Darren, his staff, and the collaborating industry-leading LPs will add large functionality to our .”
Since its preliminary closing of its first fund in January 2018, Brick & Mortar has already constructed up a portfolio of 16 offers from its present fund: ManufactOn, FieldWire, Severe Labs, BuildingConnected (acquired by Autodesk), Department Know-how, Canvas, Cumulus, Join Houses, Illumagear, SafeAI, Veerum, Ynomia, Curbio, Wingtra, Timber, and SafeSite.
The agency plans to proceed to steer seed and collection A rounds globally with a deal with the U.S., Canada, Europe, and Australia and to speculate between $1 million and $four million into new alternatives, with reserved capital for follow-on participation over the lifetime of its portfolio corporations.
“Brick & Mortar has proven a real dedication to creating worth for his or her LPs, not simply speaking about it,” mentioned Cutler Knupp, director of technique and know-how investments at Dysruptek, the CVC arm of Haskell, in a press release. “Trade experience, together with a disciplined deal with actual options that scale, units Brick & Mortar aside. They’ve an actual ardour for advancing know-how within the AEC , and it exhibits with the standard of investments and willingness to get just a little dust on their boots. The staff works hand in hand with us (the LP’s) and their portfolio corporations as a real accomplice to construct lasting worth.”
By means of Brick & Mortar’s experience and strategic LP relationships, the portfolio founders acquire entry to incomparable expertise and connections to main gamers within the development worth chain. Brick & Mortar offers detailed suggestions on product/market match, helps form the product roadmap, and helps corporations land an early POC or pilot with a pathway to scale.
The present staff of 5 consists of Darren Bechtel, Alice Leung, Kaustubh Pandya, Curtis Rodgers, and Austin Yount.
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