Marathon Venture Capital in Athens, Greece has completed the first closing of its second fund, reaching the €40m / $47M mark. Backing the new fund is the European Investment Fund, HDBI, as well as corporates, family offices and HNWIs around the world (plus many Greek founders). It plans to invest in Seed-stage startups from €1m to 1.5m initial tickets for 15-20% of equity.
Marathon’s most prominent portfolio company is Netdata, which last year raised a $17 million Series A led by Bain Capital, and later raised another $14m from Bessemer. On the success side, Uber’s pending $1.4B+ acquisition of BMW/Daimler’s mobility group was in part driven by a Marathon-backed startup, Taxibeat, which was earlier acquired by Daimler.
Highlights of Fund One’s investments include:
Tziralis tells me the majority of its next ten companies have already raised a Series A round.
Tziralis and Papadopoulos have been key players in the Greek startups scene, backing many of the first startups to emerge from the country over 13 years ago. And they were enthusiastic backers of our TechCrunch Athens meetup many years ago.
Three years ago, they launched Marathon Venture Capital to take their efforts to the next level. Fund I invested in 10 companies with the first fund, and most have raised a Series A. The portfolio as a whole has raised 4x their total invested amount and maintains an estimated total enterprise value of $350 million.
They’ve also been running the “Greeks in Tech” meetups all over the world – Berlin to London to New York to San Francisco, and many more locations in between, connecting with Greek founders.
In the wake of COVID-19 this spring, construction sites across the nation emptied out alongside neighboring restaurants, retail stores, offices and other commercial establishments. Debates ensued over whether the construction industry’s seven million employees should be considered “essential,” while regulations continued to shift on the operation of job sites. Meanwhile, project demand steadily shrank.
Amidst the chaos, construction firms faced an existential question: How will they survive? This question is as relevant today as it was in April. As one of the least-digitized sectors of our economy, construction is ripe for technology disruption.
Construction is a massive, $1.3 trillion industry in the United States — a complex ecosystem of lenders, owners, developers, architects, general contractors, subcontractors and more. While each construction project has a combination of these key roles, the construction process itself is highly variable depending on the asset type. Roughly 41% of domestic construction value is in residential property, 25% in commercial property and 34% in industrial projects. Because each asset type, and even subassets within these classes, tends to involve a different set of stakeholders and processes, most construction firms specialize in one or a few asset groups.
Regardless of asset type, there are four key challenges across construction projects:
High fragmentation: Beyond the developer, architect, engineer and general contractor, projects could involve hundreds of subcontractors with specialized expertise. As the scope of the project increases, coordination among parties becomes increasingly difficult and decision-making slows.
Poor communication: With so many different parties both in the field and in the office, it is often difficult to relay information from one party to the next. Miscommunication and poor project data accounts for 48% of all rework on U.S. construction job sites, costing the industry over $31 billion annually according to FMI research.
Lack of data transparency: Manual data collection and data entry are still common on construction sites. On top of being laborious and error-prone, the lack of real-time data is extremely limited, therefore decision-making is often based on outdated information.
Skilled labor shortage: The construction workforce is aging faster than the younger population that joins it, resulting in a shortage of labor particularly for skilled trades that may require years of training and certifications. The shortage drives up labor costs across the industry, particularly in the residential sector, which traditionally sees higher attrition due to its more variable project demand.
Too many of the key processes involved in managing multimillion-dollar construction projects are carried out on Excel or even with pen and paper. The lack of tech sophistication on construction sites materially contributes to job delays, missed budgets and increased job site safety risk. Technology startups are emerging to help solve these problems.
Here are the main categories in which we’re seeing construction tech startups emerge.