There’s a perfect storm brewing in the AEC industry with respect to technology, and startup tech companies are stoked because the waves are finally rolling in.
A number of factors are contributing to the sudden surge. An increasingly urban population along with a changing climate is placing unprecedented pressure on the built environment, according to Jesse Devitte, co-founder of Borealis Ventures, an early stage venture capital firm geared toward the AEC industry. Fortunately, mobile devices, cloud computing, and endless sensors capturing data have reached near-ubiquitous status just as a slew of game-changing technologies such as BIM, AR/VR, and Blockchain are arriving, he notes.
“It really does feel like the industry is at a unique moment in time,” Devitte said. “I can tell you one thing for certain: in my three decades of involvement in AEC software I have never seen so much activity. In fact, I wake up to a new startup in my email every single morning, seven days a week.”
As a veteran who was part of Autodesk’s former Softdesk team and who organized the company’s AEC business unit, Devitte is well versed in venture capital. Upon leaving Autodesk, he co-founded Borealis Ventures to support the next generation of software entrepreneurs. “Today, we are focused on overcoming the traditional fragmented and resulting industry inefficiency by backing startups focused on driving data across the entire building lifecycle,” he explained.
The Borealis team identifies and works with teams and technologies materially improving how the built environment is designed, constructed, operated, and experienced—and the potential for a startup to achieve industry disruption has never been better, he says.
“That doesn’t mean it is easy,” Devitte pointed out. “You are still selling to project-based businesses, which, on the design side, have more work than ever but are facing narrower margins,” he said. On the construction side, he paints a rather harrowing picture. Likening it to upgrading a plane mid-flight at low altitudes, Devitte says construction professionals are “attempting to safely deliver the highest quality product on time and budget for the real estate owners, who have their own challenges including the phenomena of ‘space as a service,’ which is the opposite of the long-term investment/cash flow ROI model that built the asset class.”
Welcome to the Start Tank
But shifts of this magnitude are precisely what’s needed to create waves for real market transformation. “These big waves may indeed be the proof that digital transformation of this industry has reached an inflection point—and that is the ideal time to invest for maximum return,” Devitte observed.
To those willing to test the tech-infested waters, they’ll have the opportunity to dive in during Start Tank, shark tank-like feature for exhibiting start-ups to pitch their winning ideas to potential investors and customers at this year’s TECH+ expo in New York City on May 22nd. Led by Devitte and featuring special guest judges Dareen Salama (Lehrer) Justin Hendrix (NYC Media Lab), and Greg Schleusner (HOK), Start Tank will enable startups to get their stories out to the market. “For potential customers it is a unique opportunity to learn about solutions they can deploy to advance their businesses,” Devitte said. “To make sure we deliver on both of those fronts, the judges are industry professionals who are potential customers for the startups. And as we say in the venture business, we will see if the ‘dogs eat the food,’ all while having fun in a positive environment.”