INDUSTRY INSIGHTS
Super Series Day!

Today feels like a huge climax of what we have been working on over the last few months - the release of our Super Series with Foundamental.

But…

We’ve done quite a bit of promotion on this across our channels, so in this newsletter, we won’t bore you with what WE have to say. Instead, let’s focus on the top takeaways from Foundamental themselves.

Here are 15 takeaways that stuck with us from the series

1. Consider exploring investment opportunities in sectors outside your direct expertise. Foundamental was created by partners without construction backgrounds, highlighting that deep industry knowledge isn't always necessary.
   

2. Take your time and thoroughly research market potential and trends before making long-term commitments. The founders spent 9-10 months conducting due diligence before committing to the AECS tech sector.
   

3. Consider the optimal fund size for your investment strategy, as bigger isn't always better in venture capital. Foundamental caps their fund size around 100 million euros to maintain focus and avoid deployment pressure.
   

4. Deep empathy is needed to succeed in AECS technology. The construction industry is primarily project-based, service-oriented, and knowledge-driven, making it different from typical software-as-a-service (SaaS) models.
   

5. Don't dismiss service-based startups in construction tech; they may evolve into scalable software businesses. Successful construction tech companies often start with service-based models before transitioning to software solutions.
   

6. Focus on technologies that improve outcomes and efficiency in construction projects. The biggest challenge in construction is that it's an outcome industry, which is why it primarily purchases services.
   

7. The construction industry is facing a significant labor shortage, with projections indicating a shortfall of over 1 million workers in Europe and the US by 2030.

8. Cybersecurity for buildings is an under-innovated space with significant potential.

9. For design software, focus on solutions that enable seamless data exchange and collaboration between various design tools. Data infrastructure and interoperability between different design software tools is a major pain point in the architecture and engineering sector.
   

10. The demand for construction is increasing globally, with projections of adding one New York City worth of construction to the planet every month until 2060.

11. Profitable businesses can be built in construction technology from day one, contrary to the popular venture capital mindset of prioritizing growth over profitability. Ignore the herd heuristic.

12. Look for unconventional business models that address specific pain points in the construction industry. Vertical singularities – unique opportunities specific to the construction industry – often challenge conventional wisdom and may initially seem unattractive to generalist investors.

13. As a founder, cultivate transparency and open communication with your investors and advisors. Founders who demonstrate vulnerability and openly discuss challenges tend to build stronger relationships with investors and make better decisions.
    

14. Identify areas in construction where your solution can easily fit into existing budgets and workflows to accelerate adoption. The construction industry offers many "buy-ready markets" where there's already a budget and established processes for specific outcomes.
    

15. Focus on developing truly disruptive solutions that challenge the core business models of major industry players. To be an attractive acquisition target, startups need to "legitimately scare the daylights” out of the incumbent.

Enjoyed these takeaways? There’s plenty more where that came from. Get the full scoop here. 50% off for the first 10 orders. Use code BB50 👇👇👇

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