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NEW RELEASE
GOLDBECK - The World’s Most Advanced Construction Powerhouse

The documentary premieres this Friday, September 26th, at 12pm BST.

INDUSTRY INSIGHTS
Inside Procore's Novorender Acquisition: How Customer Obsession and Technical Innovation Drive Strategic Deals

When Procore's Dave McCool first spoke with Novorender founder Tore Hovland, it wasn't about acquisition at all. It was about solving a problem that had stumped every major player in the BIM space.

Years later, that conversation led to an acquisition that demonstrates how the best construction tech deals happen: through authentic relationships, genuine technical breakthroughs, and shared vision about serving customers.

TL;DR: Inside Procore x Novorender

Procore’s acquisition of Novorender shows how the best construction tech deals get done, not through chasing exits, but by:

• Customer obsession first - The relationship began around solving BIM challenges, not acquisition.

• Breakthrough tech - Novorender’s streaming solution made massive BIM files cloud-ready.

• Cultural alignment - Both teams shared a “serve the customer” DNA.

• Market validation - Norway’s BIM mandate proved real-world value in high-stakes projects.

• Strategic fit - Global standards, any-size project handling, and stronger “one source of truth” positioning.

• Lesson learned - The best acquisitions happen when you’re indispensable, not when you’re for sale.

The result: Procore strengthened its global platform strategy, and Novorender became indispensable infrastructure.

The Technical Challenge That Started It All

Procore faced a fundamental limitation that threatened their cloud-first strategy. Every BIM viewer hits the same wall: browsers can't handle files larger than 2GB.

The industry's responses involved compromises:

• Fragment large models into smaller pieces

• Force users back to desktop applications

• Accept that complex projects couldn't be viewed properly online

For a platform supporting 17,000+ companies globally, none of these worked. "We cannot go back, like desktop, we cannot, we are a cloud-based platform," Dave explains.

Procore's engineering team could have built a solution, but as Dave admits: "The answer was yes, we could. It would just be maybe longer than we wanted."

Meanwhile, in Norway, Tore had already solved it.

The Breakthrough That Changed Everything

Novorender didn't try to force massive files through browsers. Instead, Tore rethought the entire approach, creating a streaming solution that loads only what users actually see.

When Dave witnessed it in action, everything changed. A 50-mile infrastructure project loaded instantly in a browser. No installation, no fragmentation, no waiting.

This wasn't just a better BIM viewer. It was a fundamental reimagining of how 3D data could work in the cloud. First principles thinking had solved what seemed impossible, demonstrating the kind of technical breakthrough that creates real competitive advantage.

Why Relationships Matter More Than Technology

The acquisition story really began with Dave's approach to building industry relationships. Rather than waiting for acquisition opportunities, he proactively connected with innovative companies.

"I started conversations with Tore pretty early and was like, hey, I heard about you. Let's get on a call and talk."

What happened next reveals why most acquisitions fail while this one succeeded (so far).

Their first conversation wasn't about deals or valuations. It was about customers. Dave discovered something rare: complete alignment on values and vision.

"When I get on a call with Tore, he's like, it's all about our customers. And I'm like, yes, it is."

Both teams obsessed over democratizing technology access rather than just building features. This cultural alignment proved more valuable than any technical specification. When teams share the same DNA around customer obsession, integration becomes natural rather than forced.

This patient approach runs counter to typical startup wisdom. As PlanGrid co-founder Ralph Gootee learned through his own experience, sustainable companies focus on building customer relationships rather than seeking buyers: "You can't build a company to be sold. Leverage is made through having a lot of customers that love you."

The Norwegian Market Validation

Novorender's credibility came from solving real problems in a demanding market. Norway's BIM mandate for government projects over 100 million euros created the perfect testing ground.

The results were significant:

• 2D-only projects averaged 20% cost overruns

• BIM implementations reduced overruns to 5%

• European BIM data growing 30% annually

This wasn't theoretical innovation. Construction companies actively sought out Novorender after seeing these results, even with free alternatives available.

The company started in oil and gas, but construction companies began approaching them: "We saw this news article about Novorender, can we use that for our roads and tunnels?"

Customer traction in regulated, high-stakes markets provides the strongest acquisition validation. When customers actively seek out your solution despite having alternatives, that signals genuine value creation.

Procore's Strategic Imperative

For Procore, this acquisition addressed multiple strategic needs simultaneously.

Technical capabilities: Novorender brought deep IFC expertise and European standards compliance exactly when Procore needed to expand globally.

Market positioning: The ability to handle any project size anywhere supported Procore's goal of serving "from the smallest projects to the biggest projects."

Platform strategy: Rather than just adding features, Novorender strengthened Procore's position as "the aggregator of information" that creates "one source of truth" for project teams.

Cultural fit: Most importantly, the teams shared the same customer-obsessed DNA that drives long-term innovation.

This combination of technical capability, market positioning, and cultural alignment created the foundation for a successful integration. Platform companies don't just buy features; they acquire capabilities that strengthen their entire ecosystem.

The Acquisition Process Reality

Most acquisitions fail, and the statistics are sobering. As Tore noted from industry discussions, seven out of 10 acquisitions don't deliver expected outcomes. Only one in 10 companies successfully executes multiple acquisitions.

The primary culprit isn't technical integration but culture mismatch. When technology companies get acquired, the value lies not just in existing products but in what teams will build next.

This reality affects every deal. As MSUITE founder Britton Langdon discovered when Stanley Black & Decker acquired his company, even successful acquisitions carry uncertainty. His board member warned him bluntly: "99% chance that this fails. So don't get your hopes up."

Yet successful acquisitions do happen when certain conditions align:

For acquirers: Build relationships before you need them. Dave's early outreach created trust that accelerated the eventual process.

Prioritize cultural alignment over pure technology fit. Teams that share values innovate better together post-acquisition.

For potential targets: Solve fundamental problems others struggle with, not just incremental improvements.

Focus on customer outcomes in demanding markets rather than chasing acquisition interest.

Develop authentic relationships with potential partners over years, not months.

The Platform Strategy: Moving Left

Procore's BIM acquisitions represent something larger than feature expansion. They're fighting to control data early in the project lifecycle.

This "moving left" strategy means owning data before ground breaks, becoming essential infrastructure rather than another tool, and building defensible moats around workflow integration.

As the industry moves toward more complex projects and tighter integration requirements, the companies that thrive will be those that make previously impossible workflows routine.

What This Means for Construction Tech

The Novorender acquisition offers a blueprint for founders and acquirers willing to think beyond traditional metrics.

For founders: The most successful companies solve fundamental problems that platform players recognize they can't build internally. This requires patience and genuine customer obsession rather than acquisition-focused thinking.

For acquirers: Cultural fit and shared vision matter more than technology alone. The best acquisitions happen when teams connect on deep levels around customer value and long-term thinking.

For the industry: Platform companies pay premiums for solutions that make their entire ecosystem more valuable. Success comes from becoming essential infrastructure rather than just useful tools.

The pattern is clear: sustainable acquisitions happen when you're not seeking them but have become too valuable to remain independent.

The Bottom Line

The Novorender acquisition succeeded because teams aligned on fundamental customer value and long-term vision rather than short-term metrics. This reflects a broader pattern among successful construction tech exits. As Levelset founder Scott Wolfe learned through his own $500 million sale to Procore: "Focus on building value because that's going to serve all masters."

This customer-first approach shaped Novorender's entire trajectory. When Norwegian BIM mandates created demand, they were ready because they'd built for customer value, not investor presentations.

As Building Connected founder Dustin DeVan discovered through his own $275 million exit to Autodesk: “Obsess over the customer, the product, and what you're making. There are so many companies focusing so much on being at the right places... that really don't actually matter for your end customers."

In an industry where most acquisitions fail due to cultural mismatches and integration challenges, this deal demonstrates that patient relationship-building and genuine problem-solving create the foundation for lasting success

Listen to the early release episode with Dave and Tore here👇👇👇

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