Global venture capital fund Zacua Ventures has launched its inaugural fund focused on backing construction technology start-ups driving sustainability, productivity and urbanisation.
The fund has surpassed its initial fundraising target of $50m by more than 10% and has attracted a large number of corporate limited partners, with 19 companies from around the globe with links to construction.
They include construction management software specialist Procore, sustainable construction materials firm Cemex and vehicle and construction equipment manufacturer Volvo.
Productivity, sustainability and urbanisation
Zacua was established in 2022 by a team of venture capital, technology and construction experts with a combined 30-plus years of industry experience. It aims to allocate its fund across start-ups that address at least one of three primary investment themes: productivity, sustainability and urbanisation.
Within these brackets, start-ups will enhance efficiency in the construction industry, reduce the carbon footprint of construction and building operations, and contribute to the development of resilient, intelligent structures that are ideally equipped to serve the cities of the future.
Since the launch of its fund, Zacua Ventures has invested in early-stage rounds for more than a dozen start-ups across the construction technology ecosystem, making it one of the world’s most active construction VCs in that timeframe.
Vivin Hegde, North America co-founder and partner at Zacua, said: “While recent macroeconomic headwinds posed challenges to venture funding this past year, investment in construction technology remained comparatively stable, driven largely by a pressing need for tech-enabled efficiency in the historically slow-to-evolve construction space.
“Common construction pain points like a lack of skilled labour and materials inflation can be effectively addressed with the right technological tools. Our mission at Zacua is to drive innovation and ultimately create a better, more efficient and more sustainable construction process for buildings and infrastructure projects alike.”
