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5 contech firms pull in cash amid funding downturn

Feb 28, 2024 - constructiondive.com
The article discusses the current state of venture funding in the construction technology (contech) industry, highlighting that despite a 44% decrease in funding from $5.4 billion in 2022 to $3 billion in 2023, the number of deals has increased. Five firms that secured funding in the first two months of 2023 are PermitFlow, Monumental, Shepherd, Document Crunch, and Buildstock. PermitFlow, a permit accrual software company, raised $31 million in a Series A funding round, while Amsterdam-based robotics firm Monumental secured $25 million in funding. Commercial insurance platform Shepherd raised $13.5 million, contract intelligence firm Document Crunch pulled in $9 million, and materials marketplace Buildstock raised $1.6 million in pre-seed funding.

These firms are using their funding to expand their teams, scale their products, and develop more solutions. For instance, PermitFlow aims to simplify permit applications across the country and is working on adding large language models to its software. Monumental, which creates bricklaying robots, plans to increase the types of bricks and construction tasks the robots can manage. Shepherd offers an AI-based compliance tool, Document Crunch uses AI to analyze contracts for risk provisions, and Buildstock offers AI-driven product discovery and aims to shorten payment cycles for suppliers.

Key takeaways:

  • Venture funding in the construction technology industry decreased by 44% from $5.4 billion in 2022 to $3 billion in 2023, but the number of deals increased.
  • Five firms that secured funding in early 2023 include PermitFlow ($31 million), Monumental ($25 million), Shepherd ($13.5 million), Document Crunch ($9 million), and Buildstock ($1.6 million).
  • These firms are innovating in areas such as permit accrual software, robotics for construction, commercial insurance platforms, contract intelligence, and materials marketplace.
  • Despite the decrease in funding, these firms are still finding success and are using the funds to scale their products, grow their teams, and develop more solutions for the construction industry.
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