A study on the current state and success factors of construction technology startups
Abstract/Contents
- Abstract
- Construction technology startups have struggled to perform as well as their counterparts in other industries, and the reasons behind this discrepancy remain largely unknown. Existing research has focused on general factors influencing success but has overlooked the specific context of construction technology companies. This gap is filled by investigating the construction tech landscape, identifying unique characteristics, and examining the factors that influence their success. Through the CIFE horseshoe method, which emphasizes a holistic understanding of construction projects, and a quantitative-leaning mixed method approach, two datasets were analyzed; one focused on construction technology startups and the other on general technology startups. These datasets were sourced from investment intelligence platforms like Crunchbase and PitchBook. Through exploratory data analysis, including distributions, and confirmatory analysis utilizing the Mann-Whitney U test and logistic regression, this thesis unveils the distinct characteristics of construction startups and identifies the parameters that contribute to their success. The findings highlight that construction technology startups exhibit uniqueness in terms of their founding team composition, fundraising strategies, and exit events. Founding teams typically consist of two-person teams with technical backgrounds, emphasizing agility and collaboration. Funding dynamics reveal shorter durations for early-stage funding and longer durations for late-stage funding. Successful exits are more commonly achieved through mergers and acquisitions. Construction tech startups exhibit unique characteristics, such as larger founding teams and a prevalent optimum exit period between 6-8 years. Factors influencing success include waiting to raise the first funding round, having architecture, engineering, and construction (AEC) experience within the team, and targeting various customer segments. Startups focused on construction management, design/engineering, and data management/analytics show higher success rates. These insights inform strategic decision-making and offer opportunities for further research and exploration in the construction technology startup landscape. A notable contribution of this thesis is the in-depth exploration of construction-focused technology companies, delving into unconventional variables such as experience in AEC, as well as customer base analysis. By considering these factors, a more comprehensive understanding of the construction tech landscape is obtained, shedding light on the industry-specific challenges and opportunities.
Description
| Type of resource | text |
|---|---|
| Form | electronic resource; remote; computer; online resource |
| Extent | 1 online resource. |
| Place | California |
| Place | [Stanford, California] |
| Publisher | [Stanford University] |
| Copyright date | 2023; ©2023 |
| Publication date | 2023; 2023 |
| Issuance | monographic |
| Language | English |
Creators/Contributors
| Author | Maulana, Fauzan Reza |
|---|---|
| Degree committee member | Fischer, Martin, 1960 July 11- |
| Thesis advisor | Fischer, Martin, 1960 July 11- |
| Associated with | Stanford University, School of Engineering |
| Associated with | Stanford University, Civil & Environmental Engineering Department |
Subjects
| Genre | Theses |
|---|---|
| Genre | Text |
Bibliographic information
| Statement of responsibility | Fauzan Reza Maulana. |
|---|---|
| Note | Submitted to the Civil & Environmental Engineering Department. |
| Thesis | Thesis Engineering Stanford University 2023. |
| Location | https://purl.stanford.edu/np153rm4827 |
Access conditions
- Copyright
- © 2023 by Fauzan Reza Maulana
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
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