Sat. Aug 24th, 2019

Brick & Mortar Ventures launches $97 million building tech enterprise fund

Development know-how is a rising sector, which is why Brick & Mortar Ventures has raised a $97 million fund to put money into each hardware and software program for construction-related industries.

The San Francisco enterprise fund was based by building tech funding veteran Darren Bechtel and is backed by high-profile company funding sources.

The fund targets rising firms growing modern software program and hardware options for the industries of structure, engineering, building, and services administration. The agency has already invested in 16 firms by means of an earlier fund.

Bechtel, who serves as managing director, has been investing private capital into Constructed World know-how startups since 2012, starting together 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 buyers and companions,” mentioned Bechtel in an announcement. “Whereas angel investing throughout all kinds of verticals, I noticed that out of my portfolio of roughly 40 firms, the Constructed World investments have been standout performers and appeared to be the beginning of a bigger development.”

Above: Brick & Mortar Ventures needs to disrupt building.

Picture Credit score: Brick & Mortar Ventures

He added, “Whether or not by good instinct, pure luck, or one thing in between, my first 4 building tech investments have been into the seed rounds of PlanGrid, BuildZoom, BuildingConnected, and Rhumbix. The speedy progress, influence, and early success of those firms 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 building worth chain, together with Ardex, Autodesk, Cemex, Ferguson Ventures, FMI, Glodon, Haskell, Hilti, Obayashi, Sidewalk Labs, and United Leases.

Such organizations take pleasure in a strategic relationship with the Brick & Mortar crew so that every is ready — if it chooses — to share data regarding challenges its group faces; collaborate on alternatives it sees; and discover rising know-how options that may be accessible for proof-of-concept pilots, codevelopment, or industrial use.

The Bechtel Group — a 120-year-old multinational engineering and building agency based by Darren’s great-great-grandfather and run at present by his brother, Brendan Bechtel — just isn’t an investor in Brick & Mortar or any of its portfolio firms. Nevertheless, because of Darren’s familial and previous skilled relationship with Bechtel, Brick & Mortar considers the corporate a most popular industry associate, together with its anchor buyers.

These companions work with Brick & Mortar to determine industry challenges, discover options, and contemplate the advantages provided by early-stage firms, 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 well-liked 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 might be growing built-for-purpose options for the development industry,” mentioned Kevin Barnes, managing director at Ferguson Ventures, in an announcement. “Darren, his crew, and the taking part industry-leading LPs will add great functionality to our industry.”

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 Properties, Illumagear, SafeAI, Veerum, Ynomia, Curbio, Wingtra, Timber, and SafeSite.

The agency plans to proceed to steer seed and sequence A rounds globally with a give attention to 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 firms.

“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 an announcement. “Trade experience, together with a disciplined give attention to actual options that scale, units Brick & Mortar aside. They’ve an actual ardour for advancing know-how within the AEC industry, and it exhibits with the standard of investments and willingness to get a bit of dust on their boots. The crew works hand in hand with us (the LP’s) and their portfolio firms as a real associate to construct lasting worth.”

By Brick & Mortar’s experience and strategic LP relationships, the portfolio founders acquire entry to incomparable industry expertise and connections to main gamers within the building worth chain. Brick & Mortar gives detailed suggestions on product/market match, helps form the product roadmap, and helps firms land an early POC or pilot with a pathway to scale.

The present crew of 5 consists of Darren Bechtel, Alice Leung, Kaustubh Pandya, Curtis Rodgers, and Austin Yount.

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