BuiltWorlds Institutional Activity Dashboard is now live. This dashboard tracks deepening M&A activity, venture fund launches, and monthly construction spending in the US.
To see BuiltWorlds Top Deals of 2022 → Click Here
To view the Institutional Activity Dashboard (members only) → Click Here
The FOMO-fueled overzealous fundraising environment of late 2021/early 2022 is finally flushed out. Early-stage fund managers are advising their portfolio companies to batten down the hatches for the next 12 months (cut burn rates to stay alive in 2023’s tough fundraising environment), as many founders look toward the end of their capital runways.
The historical notion that each sequential funding round provides between 18 and 24 months of growth capital till the next raise is needed, is being shaken by macroeconomic headwinds.
Cautiously optimistic is the best way to describe the current VC environment. Despite the growing number of built world-focused funds, these early-stage investors' are still tightening up their due diligence processes, making fundraising incredibly difficult for startups. Now, with the IPO window closed for the foreseeable future (likely the next 12 to 18 months), M&A appears to be one of the only channels left for founders seeking an exit.
At the same time, this economic restructuring period has catalyzed AEC’s highly fragmented legacy leaders to look toward consolidation. Value gaps of the old built world are becoming apparent to corporate construction execs - with cash reserves skyrocketing in the past 2 years - who are now shopping around for acquisitions that would alleviate immediate pain points → new tech as well as vertical & horizontal integration opportunities.
Leaders in this historically near-sighted industry are beginning to lengthen their scope and consider where they will fit into the “new” built world that the current digital renaissance. M&A activity has picked up significantly in the past few months, and based on primary data collected, is only expected to accelerate in the quarters ahead.
At the same time, fresh early-stage capital continues to flood into innovation-guiding built world funds. Piling sidelined cash, precarious public market price action, and evidence of long-term value creation in the AEC-startup ecosystem have led to a cascade of fresh venture capital into funds focused on the future of the built environment. In the final 7 weeks of 2022 6 built world VC/CVC funds were launched, introducing an additional $1.85B in dry powder poised to accelerate vital innovation in this paper-trailing industry.
BuiltWorlds Institutional Activity Dashboard will track these institution activity indicators in real-time as new tech becomes the needed adhesive for consolidation in the highly fragmented construction/building sector.
The insights and trends we have derived from the Venture Dashboards, Reports, and Venture Forum, guide our content programming throughout the year. Our upcoming Venture West Conference will highlight key insights from this report and the extensive primary research created. Members are encouraged to register below before the ticket prices increase.
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