CHICAGO, Ill. — February 26, 2025 – While venture capital funding for construction technology (contech) declined in 2024, deal activity actually increased, according to BuiltWorlds’ Annual Venture & Investment Report. Investors funneled $14.9 billion into contech last year—a 22% drop from the $19.2 billion invested in 2023. However, the number of deals rose from 558 in 2023 to 604 in 2024, signaling a strong appetite for innovation despite financial headwinds.
According to BuiltWorlds, 2023’s higher dollar figures were skewed by five mega-deals exceeding $1 billion, whereas 2024 saw more transactions but at lower valuations.
Despite global economic challenges such as high interest rates and slower exit activity, venture capitalists maintained a robust interest in contech, driven by:
✅ Record-high U.S. construction spending under the Infrastructure Investment and Jobs Act (IIJA)
✅ Government-backed projects supported by the Inflation Reduction Act
✅ Growing European construction output, as reported by Eurostat, the European Union’s statistical office
“It is possible that for the first time since 2019, investment decisions were not significantly driven in some way by macroeconomic impacts,” said Tyler Sewall, BuiltWorlds’ senior director of research. “2020-2022 investment activity was influenced heavily by a remote workforce and digital community, and following that, domestic public infrastructure funding colored VC activity.”
One region that saw a sharp decline in contech investment was the U.K., where activity plummeted 86% year over year due to economic headwinds. However, the report noted that U.K. funding levels remained high compared to other global markets.
BuiltWorlds classified VC investments into three major categories:
1️⃣ Construction Technology: Software, tools, robotics, and project management solutions for job sites and back offices
2️⃣ Building Technology: High-performance materials, smart design tools, and property management software
3️⃣ Infrastructure Technology: Project software, energy storage, utilities, and grid-scale solutions
Aside from VC funding, mergers and acquisitions (M&A) surged in 2024. 88 built environment tech M&A deals were completed, fueled by:
✅ Private equity-backed rollup strategies
✅ Strategic tuck-in acquisitions among industry leaders
These trends align with findings from Cemex Ventures, the contech-focused venture capital arm of Cemex, which recently reported that:
With ongoing public infrastructure spending and a strong appetite for tech-driven efficiencies, industry experts predict that AI, automation, and sustainable construction solutions will lead future investment trends in the built environment
Originally reported by Matthew Thibault in Construction Dive.
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