Construction know-how is a rising sector, which is why Brick & Mortar Ventures has raised a $97 million fund to spend money on each {hardware} 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 firms creating progressive software program and {hardware} options for the industries of structure, engineering, development, and services administration. The agency has already invested in 16 firms via an earlier fund.

Bechtel, who serves as managing director, has been investing private capital into Built 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 are excited to formally announce our first institutional venture capital fund and publicly introduce our corporate strategic investors and partners,” stated Bechtel in an announcement. “While angel investing across a wide variety of verticals, I observed that out of my portfolio of roughly 40 companies, the Built World investments were standout performers and looked to be the start of a larger trend.”

Brick & Mortar Ventures launches $97 million construction tech venture fund

Above: Brick & Mortar Ventures desires to disrupt development.

Image Credit: Brick & Mortar Ventures

He added, “Whether by good intuition, pure luck, or something in between, my first four construction tech investments were into the seed rounds of PlanGrid, BuildZoom, BuildingConnected, and Rhumbix. The rapid growth, impact, and early success of these companies strengthened my conviction there was ‘gold in them hills’ and now was the time to invest and double down on our built world tech investment 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 Rentals.

Such organizations get pleasure from a strategic relationship with the Brick & Mortar workforce 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 business use.

The Bechtel Group — a 120-year-old multinational engineering and development agency based by Darren’s great-great-grandfather and run as we speak by his brother, Brendan Bechtel — isn’t an investor in Brick & Mortar or any of its portfolio firms. However, resulting from Darren’s familial and previous skilled relationship with Bechtel, Brick & Mortar considers the corporate a most popular trade companion, together with its anchor buyers.

These companions work with Brick & Mortar to establish trade challenges, discover options, and take into account the advantages provided by early-stage firms, whether or not or not Brick & Mortar is an investor within the startup in query. In addition to the person help and partnership between the agency and every Preferred Industry Partner, Brick & Mortar facilitates knowledge-sharing and direct collaboration.

“We are excited to be a Limited Partner of Brick & Mortar and support their efforts to accelerate promising startups that are developing built-for-purpose solutions for the construction industry,” stated Kevin Barnes, managing director at Ferguson Ventures, in an announcement. “Darren, his team, and the participating industry-leading LPs will add tremendous capability 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, Serious Labs, ConstructingConnected (acquired by Autodesk), Branch Technology, Canvas, Cumulus, Connect Homes, Illumagear, SafeAI, Veerum, Ynomia, Curbio, Wingtra, Timber, and SafeSite.

The agency plans to proceed to steer seed and collection 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 shown a true commitment to creating value for their LPs, not just talking about it,” stated Cutler Knupp, director of technique and know-how investments at Dysruptek, the CVC arm of Haskell, in an announcement. “Industry expertise, in combination with a disciplined focus on real solutions that scale, sets Brick & Mortar apart. They have a real passion for advancing technology in the AEC industry, and it shows with the quality of investments and willingness to get a little dirt on their boots. The team works hand in hand with us (the LP’s) and their portfolio companies as a true partner to build lasting value.”

Through Brick & Mortar’s experience and strategic LP relationships, the portfolio founders acquire entry to incomparable trade expertise and connections to main gamers within the development worth chain. Brick & Mortar supplies 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 workforce of 5 consists of Darren Bechtel, Alice Leung, Kaustubh Pandya, Curtis Rodgers, and Austin Yount.

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