The construction sector is known for its slow embrace of technology. However, a new venture capital firm, funded by major construction companies, aims to change that narrative.
Zacua Ventures has launched a $56 million fund targeting early-stage construction technology startups, with backing from 19 industry giants such as Procore, Volvo, and Cemex. The firm was founded in 2022 by Vivin Hegde, Mauricio Tessi Weiss, and Juan Nieto, all with backgrounds in the construction industry.
Tessi Weiss, representing the European Union and Latin America for Zacua, acknowledges the fragmented adoption of technology in the construction industry due to the dominance of small and medium companies. The emergence of startups focusing on AI, industrialized construction, IoT devices, and robotics presents a significant opportunity for innovation.
With a global GDP share of 14% and contributing 40% of worldwide greenhouse gas emissions, the construction industry presents challenges and opportunities for sustainability-focused startups. Zacua Ventures is targeting startups addressing sustainability, productivity, and urbanization.
The firm’s partners are actively seeking startups that enhance efficiency, reduce carbon footprints, and develop resilient, intelligent structures for future cities. They have already invested in several startups in the construction technology space, including Construex and Flexnode.
Despite the challenges, Zacua Ventures successfully raised a $56 million fund targeting the construction technology sector, reflecting the vast potential for innovation in the industry.
