In today's episode of Bricks, Bucks and Bytes, we learn about the story of an AEC start-up that raised $25M from a prestigious investor only to shut up shop shortly after announcing their round.

We got insights into late-stage funding challenges in construction tech, with a seasoned investor highlighting why businesses struggle to raise Series B rounds when earlier rounds were overvalued.

Also, we learned why Europe might offer better returns for construction tech investors than the US, despite the US potentially delivering bigger individual outcomes.

Tune in to find out about:

✅ Why listening to non-VC entrepreneurs is crucial for sustainable growth

✅ The mechanics of construction tech startup valuations across funding rounds

✅ How to navigate down rounds and recapitalization

✅ Why European construction tech startups have a 4-5x cost advantage

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Chapters

00:00 Introduction and Light Banter

01:49 Challenges in Construction Tech Funding

04:27 Strategies for Raising Capital

09:20 Profitability vs. Growth in Construction Tech

12:56 Late Stage Funding Trends

15:24 Avoiding Overvaluation in Funding Rounds

17:28 Valuation Mechanics in Funding Rounds

21:16 Equity Dynamics in Down Rounds

23:06 Anecdotes from the Industry

25:42 Reflections on Construction Tech Investing

29:25 Comparative Analysis: Europe vs. US in Construction Tech

33:00 Future of Point Solutions in Construction Tech