The construction industry is traditionally known as one of the slowest to adapt to the technological revolution - but not anymore. Venture capitalists and startups are revolutionizing the real estate and property development industry one dollar at a time.
In recent years, venture capitalists have played a huge role in the advancement of the construction industry. A huge influx in funds has poured into the construction industry even in means of private equity and we’re truly only seeing the very beginning of venture capital’s role. We expect huge things for this newly kindled relationship but for now here is everything you need to know about venture capital's role in real estate development:
This journey started a few years back. Startups began to see an opportunity in the construction industry. In 2013, funding for the construction technology industry was at about $182.7 million. In 2017, this amount surged 318% to about $581.6 million according to CrunchBase data. And there’s no end in sight for this growth.
This influx in cash flow pouring into the construction industry will truly change the way the development industry operates. Here’s how:
All this cash flow into the construction industry is being put towards developing advanced technologies. These technologies will advance the industry by tenfold. These technologies will help architects, construction managers, and so much more personnel streamline their processes.
Venture capitalist funding will lead to advancements in software, building materials, modular construction, and hybrid building technologies.
Venture capital within the construction industry is presenting endless opportunities. Funds of this kind will create opportunities for more advanced materials and give the industry a freedom it has never before seen. These new funds allow construction managers to create the most advanced developments at a fraction of the price. Restrictions will be a thing of the past.
Venture capitalists have expertise across various industries. In recent years, we’ve seen venture capitalists provide new expertise that the construction industry has never seen before. From finance to tech, venture capitalists have been providing new insights on how to revolutionize the construction industry.
We have not seen the end of the role of venture capitalists within the construction industry. The funds that venture capitalists provide to this industry will take property development to new levels in the upcoming year.
For more information on how you can take advantage of the insurgence of venture capital into the construction industry, contact Focus today!