Dive Brief:
- Suffolk Technologies, the venture capital arm of Boston-based contractor Suffolk Construction, has closed out its sixth BOOST tech accelerator through its Demo Day, where eight selected startups pitched their products to an audience of investors, experts and stakeholders, according to a Nov. 20 news release.
- BOOST, which Suffolk launched in 2020, has graduated 38 participants, including Trunk Tools and Kaya AI, that have raised more than $700 million in funding, according to the news release. Solutions ranged from artificial intelligence, prefabrication and robotics to materials science.
- This year, Suffolk tapped its network of 55 partner organizations to give the companies access to clients, pilot projects and investors, as well as experience on active Suffolk jobsites. Of those 55, 28 were construction firms, and 10 of them conducted a pilot on an active jobsite with one or more BOOST members, per a Suffolk spokesperson.
Dive Insight:
The BOOST 6 cohort comprises:
- ARKI (Canada): A design system that helps architecture and engineering firms complete projects 50% faster by leveraging past data.
- Cyphra Autonomy (Fenton, Missouri): A robotic material movement solution that uses automated wagons tailored for the built environment to allow crews to focus on higher value activity.
- Dig Energy (Manchester, New Hampshire): A geothermal drilling technology that claims it is more cost-efficient, compact and thermally effective than traditional equipment.
- Hardline (Los Angeles): A voice-first, call transcription and documentation solution that captures decisions made over the phone for construction teams.
- MOD (Switzerland): A platform that evaluates prefab potential in architectural designs and organizes supply chain opportunities to accelerate prefabrication adoption.
- Neuron Factory (Redwood City, California): An AI coworker platform for preconstruction data to optimize workflows, increase accuracy and deliver better results in estimation and planning.
- Ouros Materials (New York City): The firm produces ultra-tough, fire-resistant composites made with captured carbon dioxide.
- Puppet Robotics (San Francisco): A semi-autonomous robotic arm that keeps workers safe while working at height with an emphasis on maintaining human precision and control.
All BOOST participants receive $100,000 on a post-money SAFE, or a Simple Agreement for Future Equity, in return for 3% equity in the company, according to a Suffolk spokesperson. The mechanism allows an investor, in this case Suffolk Technologies, to invest in a company and have a concrete ownership percentage when the money converts to shares.
In addition, Suffolk Technologies also receives the right to invest in the firms’ next qualified financing rounds for up to 20% of the securities offered, per the spokesperson.
This year’s Demo Day comes during a pivotal moment for the contech ecosystem. As builders become more technologically advanced, others are joining the tech fray by investing in startups themselves. Series B deals, for example, are on the rise in the contech space as established firms continue to mature.
AI is a big driver in this space, which Suffolk has kept its eye on over the past year. Last December, Jit Kee Chin, Suffolk’s chief technology officer, predicted that the rubber would hit the road as AI started to take off in the building industry. While that has played out to a degree, other contractors are still slow to adopt the tech, even as they recognize the benefits of the technology.
