Full review: foundamental.com/perspective…

💡 Key Learning: Generic tech investment frameworks often fail in construction. The sector needs investors who understand: Industry-specific unit economics Relationship-driven sales Outcome-based solutions Agree? Disagree? What other fallacies have you seen?

5️⃣ Product vs. Outcome Confusion Construction buys OUTCOMES, not products. One startup we backed was ignored by generalists for "not being SaaS enough" Plot twist: They had 75% margins + were profitable at pre-seed 🚀

4️⃣ Consumer Tech Playbook Copy-Paste Example: "Quick commerce for construction" startups. They forgot: €150 emergency purchases once a month ≠ viable marketplace cohorts. You can't just copy Gorillas/Getir for construction 🤦‍♂️

2️⃣ "Growth At All Costs" Mentality The days of negative gross margins to subsidize growth are OVER. Construction firms won't trust vendors they think won't be around next year. Profitability matters from day one.

1️⃣ The "SaaS Everything" Trap Reality check - construction company spending: 50% materials 48% labor & machinery 2% IT Focusing only on software means you're fighting for 2% of the pie

🧵 5 Common Fallacies Generalist VCs Fall For in Construction Tech:

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What #aectech categories are you building in?

Category trends in #aec-tech

Risers of the month #aec

Full analysis: foundamental.com/perspective…

Concentration ratios 4 and 10 were much higher in Q3, particularly in the US market. This trend may not be healthy if sustained and requires monitoring in the USA.

Seed round sizes saw a substantial increase in Q3 2024, indicating growing investor interest in early-stage AECS-Tech startups.

Market share of AECS-Tech as a percentage of total VC funding continues to increase: 0.54% globally 1% in the US 1% in APAC 0.5% in Europe

✔️Over $800 Million in funding for Q3 2024 ✔️Cumulative VC funding has now reached $35 Billion ✔️Post-2021 quarters consistently show higher funding levels compared to pre-2021

❓ What startups are involves in the analysis: core construction, renovation, planning & design, and directly-related supply chains

Summary of AEC-tech fundraising research 2024 🧵

What is the state of fundraising for #aec tech #startups? 1⃣Over $800 Million in funding for Q3 2024 2⃣Cumulative VC funding has now reached $35 Billion 3⃣Post-2021 quarters consistently show higher funding levels compared to pre-2021 #VentureCapital