Brick and Mortar Ventures newly announced fund, which totals $97.2 million, will be used to invest in early-stage companies that focus on technologies in the architecture, engineering, construction and facilities management industries.
Brick and Mortar founder and managing director Darren Bechtel refers to the fund as the “Fifth Wall of construction,” referring to the high-profile venture capital firm that focusses on property-oriented technology, or “proptech”, which last month announced a new $500 million fund.
Though venture capital has been pouring into the proptech sector for some time now, Bechtel said that the building industry has lagged behind in terms of innovation and it has only been in the last few years that “you could build solutions that would radically disrupt construction productivity.”
Bechtel pointed to the possibility of adding greater connectivity and automation to building processes, as well as to the prospect of developing better imaging tools. He also said that the construction industry is facing a labor shortage, which new technologies might help address.
The company has used its money to invest in a variety of technology companies including Canvas, Connect Homes, Veerum, Ynomia, Curbio, Wingtra and others. Going forward, the firm plans to use its cash to invest between $1 million and $4 million in seed and series A funding rounds for additional companies.