Building Ventures closes new fund with $95M in capital
The firm’s first fund was launched in 2018 to support startups wanting to innovate in the construction sector.
Building Ventures partner Heather Widman (right) addresses attendees during one of the firm’s summit events. – Building Ventures
Key Takeaways:
- The Boston-based firm announced its second fund will continue to support startups that are wanting to improve the built environment.
- Since the firm began in 2018, it has seen growth in property tech and climate tech but believes there is still massive room for more.
- Building Ventures noted that it’s critical to assist these startups in their ‘sapling’ stage so they can be given the resources they need to grow.
The Whole Story:
A Boston-based venture capital firm has closed its second fund with $95 million in new capital that will be spent supporting innovation in the built environment.
Building Ventures began in 2018 with a $53 million debut fund. Its goal was to invest in early-stage startups working to create a better built world.
“We knew that the area needed focus, innovation, and capital in order to improve our physical spaces to meet the needs of our growing population and combat the significant impact buildings have on our climate,” stated the firm. “Over the last four years, we’ve seen massive growth in investments in and increasing adoption of construction and prop tech along with the rise of climate tech. But there’s still work to do.”
The firm explained that while the industry has become increasingly hungry for innovation, spurring the creation of new firms focused on contech, proptech, and climate solutions, buildings still pose what it calls “the 40 per cent problem.” The processes of constructing, operating, and maintaining buildings significantly contribute to landfill waste, raw material consumption, energy use, and emissions.
The group said their second fund will continue to invest in exceptional entrepreneurs leveraging technology throughout the full building lifecycle to bring innovation to the design, build, operate, and experience phases.
“Building Ventures was the first investor who committed to Dandelion—before any other investors had said yes, before we had the market traction or the press we now have,” said Kathy Hannun, founder of Dandelion Energy, the nation’s largest geothermal company.
Building Ventures explained that its timing and approach targets the “sapling stage”.
“We like to invest when a company is still early enough in its formative development that our team’s experience, expertise, and network can help it to attract the best talent and optimal early customers to help it grow and reach its potential,” said the firm. “This also means we’re not limited by the typical conventions of Seed or Series A investments.”
As its “saplings” mature, the firm also pursues opportunities to connect with larger institutions across the building lifecycle.
The company plans to host its Fall Summit in Boston next month, where experts will gather to explore the impact of artificial intelligence and machine learning on designing sustainable offices, the use of IoT in the most data-forward development in the Boston area for life sciences, and more.
