ConTech Startups / ConstructionTech Startups – Digital revolution in the construction industry
Today we continue our series on startup industries with an article dedicated to ConTech startups. First, we explain what the term ConTech is all about and how it differs from the term PropTech. Then we give a brief overview of the development of the ConTech industry so far and the most relevant technologies in this field. In this context, we also present exemplary three successful ConTech start-ups, as well as the cooperation example of the ConTech start-up RYSTA and its partner TM Ausbau.
What is ConTech and how does it differ from PropTech?
The terms PropTech and ConTech, or RealTech, are often used synonymously. Strictly speaking, this is not entirely correct, so here we first explain the difference between PropTech and ConTech. The term PropTech refers to all technological innovations in connection with the digitalisation of the real estate industry. It is made up of the terms property and technology. This includes solutions from the areas of management, letting, planning and construction. So while PropTech is the umbrella term, ConTech represents a part of the industry that specifically refers to start-ups and companies that are active in the construction process. The term ConTech is made up of the words Construction and Technology, and includes innovative technologies that drive digitalisation in the construction industry, thus optimising processes and workflows.
You can find more exciting information and an overview of the PropTech ecosystem in our PropTech Startup Guide.
The development of the ConTech industry
Although construction is one of the world’s largest industries, it still has a lot of catching up to do in terms of digitalisation and is slow to exploit the added value of digitalisation.. It is the least digitised sector after agriculture. This is due, among other things, to interface problems, a lack of transparency and communication between the parties involved in construction projects. Innovative technologies offer enormous potential here. Productivity in the sector could increase by up to 15% through the use of new technologies (source: McKinsey). The construction industry is one of the most important industries in the world, and its relevance is growing. This is because, for the first time in human history, more people live in cities than in rural areas, a trend that is expected to continue rising, according to the United Nations. By 2050, 70% of the world’s population could live in urban areas. Thus, by the end of the decade, the construction industry could account for over 13% of the global economy (source: PwC).
ConTech trends and technologies
The use of innovative technologies in the construction industry can make processes more efficient and cost-effective. One of the most important technologies in the ConTech sector is BIM. The abbreviation BIM stands for Building Information Modeling. It refers to a holistic data standard in the description of the individual parts of a building. With this planning method, workflows are optimized using software. Defined according to the US National BIM Standards Committee, BIM is a:
“digital representation of physical functional characteristics of a facility and, through a common usable pool of relevant data, creates a reliable basis for decision-making throughout the life cycle of the structure, from the earliest idea to deconstruction.”
The foundation on which BIM is based is a 3D computer model. The added values that can be created by this technology are numerous. In addition to increased efficiency and time savings, the continuous availability of all data leads to greater planning reliability. While BIM has already established itself in large construction companies, the technology is only slowly but surely making its way into the SME sector.
The awarding of construction projects is also becoming increasingly linked to BIM, which is likely to gradually make this the standard. For public transport infrastructure projects, BIM has been a mandatory guideline since the beginning of 2021. Many large general contractors are also already using BIM, particularly for costing, work preparation and coordination on the construction site. In addition, the BIM methodology is used for the integration and coordination of subcontractors. (Source: EY Real Estate Trends August 2020).
But technologies such as 3D printing, robotics, IIoT, VR or smart materials are also being used. These are used along the entire value chain of the construction industry. This includes the areas of planning, procurement, logistics and production. In doing so, the ConTechs pursue the goal of further advancing the digitalisation of the construction industry and coordinating construction processes in such a way that resources, time and costs can be saved efficiently. The latest technologies are presented every second year at digitalBAU the trade fair for digital construction. In addition, visitors to the Tech in Construction trade fair will be able to learn about innovations in the field of construction technologies. The use of ConTech innovations also makes sense from the point of view of sustainability. In this context, the ConTech industry receives funding from the federal and state governments, among others. For example, the “Stufenplan Digitales Planen und Bauen” (Step-by-Step Plan for Digital Planning and Construction) of the Federal Ministry of Transport and Digital Infrastructure made a significant contribution to establishing BIM more firmly in the construction industry between 2015 and 2020.
Before we go into specific startup examples, here are some listings of the most relevant startups in the ConTech industry under the respective link.
| ConTech-Startup Lists |
| Cemexventures top 50 ConTech-Startups 2020 |
| ConTech-Startup Map |
ConTech start-up case study: Visoplan
An exciting startup from the BIM sector is ConTech Visoplan. CEO Boris Goldshteyn had the idea for his solution back in 2015, followed by the founding of ALLVR a year later and then the rebranding as Visoplan GmbH at the beginning of 2020. With its platform-based software, Visoplan develops a digital data twin. The start-up’s customers include architects, specialist planners and project developers. In an interview with Christoph Baier, Boris Goldshteyn from Visoplan talks about the start-up’s solution and the cooperation with partner Filinvest.
ConTech start-up case study: Sablono
Berlin-based startup Sablono offers a web-based construction execution platform for controlling and monitoring complex large-scale projects. The solution is applicable, for example, in residential and commercial construction projects, interior fittings and façade works. Since its founding eight years ago, the start-up has been able to win customers all over the world who are successfully implementing the solution in Europe as well as America, South America and North Africa and the Arab Emirates. The startup’s partners and investors include the technology group SAP and Hasso Plattner Ventures.
ConTech start-up case study: PLAN4
The solution developed by the Freiburg-based startup PLAN Software makes the renovation backlog of existing properties digital and transparent. The PLAN4 Gebäudecheck software can develop standardised assessment processes, create mobile condition assessments and calculate costs for renovation measures. In this way, building refurbishments can be designed more efficiently and cost-effectively than with conventional, manual methods. Furthermore, the software is freely configurable and can be customised by the clients themselves. In an interview with Ambivation, Dr. Hendrik Seibel, Managing Director of PLAN4 Software , talks about the application areas of the software and cooperations with clients who are already using it successfully. In addition to the video interview with PLAN4 Software , you can find a list of other ConTech and PropTech start-ups interviewed here.
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At this point we would like to present the cooperation between the ConTech startup RYSTA and the medium-sized company TM Ausbau as a successful example of cooperation. ConTech RYSTA specialises in construction site monitoring. With their IoT monitoring, they offer warning systems for construction sites. This works by installing sensors on the construction site, which record the relevant data and send it to the customers. This means they don’t always have to be on site, but still have everything in view at all times. The added values that result from this include time savings, increased efficiency and the assurance of quality promises. Ambivation spoke with Julia Gebert, founder and managing director of RYSTA, in an interview about the cooperation with her partner TM Ausbau.
TM Ausbau is a medium-sized company for interior fittings. The contact with RYSTA came about through the management and was arranged to Berlin. The branch there is managed by Mr Berger, who shared his experiences in the cooperation in an interview with Ambivation. The cooperation between RYSTA and TM Ausbau started with a pilot project. TM Ausbau worked on a large construction project in Berlin, Oranienburg with twelve houses and a total of 265 residential units. Here, the sensors from RYSTA were used to measure and monitor the temperature and humidity in the individual rooms during the interior finishing work. This meant that the values did not have to be entered and read manually by the project manager at each construction site, as was previously the case. The data could be retrieved from anywhere at any time and passed on to the building owner.
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In the course of the cooperation, there were always feedback rounds, reports Mr Berger. TM Ausbau was able to contribute its own ideas for possible improvements. In the meantime, RYSTA has already been able to implement some of these. “A very good cooperation from RYSTA, from which both sides have certainly benefited. For us, this means for the future that it has definitely paid off to work with a young start-up like RYSTA,” was Mr Berger’s conclusion about the cooperation. In addition, Mr. Berger emphasised the advantage that cooperation with young people and companies who think differently can prevent the operational blindness that can arise after years of experience in one’s own field.
At this point, we would like to provide an overview of other collected examples of successful collaborations between startups and companies.
| CleanTech-Startup | Corporate | Link to collaboration |
| Visoplan | SachsenEnergieAG | Link |
| Xtree | VINCI Constructions | Link |
| Capmo | RS Wohnbau/ MBN | Link |
| Ecoworks |
Deutsche-Energie-Agentur (dena) |
Link |
Even if the construction industry has made rather slow progress in terms of digitalisation so far, slowly but surely the new technologies are establishing themselves both in medium-sized businesses and in the large construction companies. Start-ups have already recognised this potential and can be at the forefront with their innovative ideas. The technologies they develop can offer the industry some added value. Construction companies have also recognised this advantage, and more and more of them are now cooperating with ConTech start-ups. This creates favourable conditions for strong growth in the sector in the coming years.
About Ambivation
Ambivation connects innovative companies and startups for cooperation and innovation partnerships. As an innovation consultancy and matchmaker, Ambivation promotes cooperation between established companies and startups within the framework of concrete customer, supplier and research partnerships. We support companies in the identification of needs, startup identification, startup evaluation and cooperation initiation with startups. Formats such as research on relevant startups, startup monitoring, strategic cooperation consulting or event formats such as startup tours serve this purpose. Our monthly newsletter also provides information on current examples of cooperation and events.
