tl;dr

• Mo Akbari, ex-founder of HoloBuilder, shares insights on reality capture in construction
• Reality capture market still has untapped potential despite years of development
• AI and new technologies are reshaping the landscape of construction tech
• Successful products in construction tech need high adoption rates and user engagement
• Funding landscape in construction tech remains active, especially for pre-seed and seed stages
• Future of reality capture lies in autonomous technologies and improved data processing

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"Now still construction is a very manual thing. We should not forget about that."

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Listen to this episode

00:00 Introduction and Overview

01:09 The Journey of HoloBuilder: From Manufacturing to Construction

08:41 The Go-to-Market Strategy of HoloBuilder

14:20 The Decision to Exit HoloBuilder

23:15 The Three Components of Reality Capture in Construction Tech

28:03 Competition in the Reality Capture Space

35:18 Success Factors in Reality Capture Solutions

39:56 The Evolving Reality Capture Market and Market Leaders

41:33 Funding Challenges and Valuation Drops in Construction Tech

45:26 The Importance of Adoption and User Engagement in Construction Tech

57:34 Niche Markets and Disrupting Workflows in Construction Tech

01:09:43 Building Strong Customer Relationships in the Construction Tech Industry

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The Reality Capture Pioneer

Mo's venture into the realm of construction tech began in 2015, at a time when the concept of reality capture was still in its infancy. With a background in computer science and a team of talented individuals, Mo and his colleagues made a pivotal decision to shift their focus from manufacturing to construction. This decision was sparked by an unexpected discovery: the power of 360-degree image capturing and processing in the construction sector.

"There was nobody else out there," Mo recalls, reflecting on the early days of HoloBuilder. "We just started building it and shipping it, and everybody really... I was surprised how many people were using it." This simple observation underscores the untapped potential that existed in the market at the time – a potential that HoloBuilder was uniquely positioned to fulfill.

The journey wasn't without its challenges, of course. As pioneers in the field, Mo and his team had to navigate uncharted waters, developing solutions for problems that many in the industry hadn't even recognized yet. But it was this very novelty that allowed HoloBuilder to carve out its niche and establish itself as a leader in the reality capture space.

The Evolution of Reality Capture

As we delved deeper into our conversation, Mo provided a comprehensive breakdown of the reality capture field, which he divides into three main components:

First, there's the capture technology itself. This includes the hardware used to gather data on construction sites, such as 360-degree cameras and laser scanners. These tools form the foundation of reality capture, allowing for detailed and accurate representations of physical spaces.

Secondly, we have reality capture data management. This component deals with how the captured data is stored, viewed, and interacted with. It's about creating intuitive interfaces that allow construction professionals to easily navigate and utilize the vast amounts of visual data collected on site.

Finally, there's the analytics and AI aspect. This is where the raw data transforms into actionable insights, using advanced algorithms to identify patterns, track progress, and even predict potential issues before they arise.

Despite the significant strides made in these areas over the years, Mo believes that we've only scratched the surface of what's possible. "I think there could be a new company," he states, hinting at the untapped potential still present in the market. "I mean, it's hard to get funding because people maybe not see it as overcrowded. But believe me, I know there are some ways how you can disrupt now the whole thing or just one of the categories."

This optimism is not unfounded. As we'll explore further, the rapid advancements in AI and other technologies are opening up new avenues for innovation in the reality capture space.

The AI Revolution in Construction Tech

One of the most exciting developments in the field of reality capture – and indeed, in construction tech as a whole – is the impact of artificial intelligence. Mo's insights on this topic are particularly illuminating, highlighting how AI is reshaping the landscape at an unprecedented pace.

"Everything what people did is worthless," Mo states, referring to the years of work put into developing AI models for image recognition and flow plan recognition. "All they spent in the past six years on AI creating, and image recognition, flow plan recognition, now an out of the box model can do with some modification."

This statement, while potentially alarming for some, actually points to an exciting reality: the barriers to entry for AI-powered solutions in construction tech are lower than ever before. Tasks that once required extensive resources and expertise can now be accomplished with readily available models and a bit of fine-tuning.

This shift opens up a world of possibilities. For instance, Mo suggests that robotics could play a significant role in the future of reality capture, especially for large capital-intensive projects. Imagine autonomous robots roaming construction sites, capturing detailed 3D scans and feeding that data directly into AI systems for analysis. Such a scenario, which might have seemed like science fiction just a few years ago, is now within the realm of possibility.

However, it's important to note that this AI revolution doesn't negate the value of domain expertise. If anything, it makes industry knowledge more crucial than ever. The challenge now lies not in developing AI models from scratch, but in applying these powerful tools in ways that truly address the unique challenges of the construction industry.

The Importance of Adoption and User Engagement

While discussing the technical aspects of reality capture, Mo repeatedly emphasized a crucial point that often gets overlooked in the tech world: the importance of user adoption and engagement. In the construction industry, where traditional methods are deeply ingrained, creating a product that people actually want to use is paramount.

Mo puts it colorfully: "Let's say it should be like cake and everybody or burritos here on a job site, so everybody love to use it or eat it. Yeah. If you do free burritos or there's a burrito truck, a company paid for, everybody would line up and eat for it. Yeah, that thing goes. And your product should be the same."

This analogy, while humorous, encapsulates a profound truth about product development in construction tech. It's not enough to create a technically superior product; it needs to be something that construction workers and managers actively want to use. It should seamlessly integrate into their workflow, making their jobs easier and more efficient.

Mo stresses that this focus on adoption goes beyond just selling a product. It's about creating something that becomes an integral part of the daily routine on a construction site. "Now still construction is a very manual thing," he reminds us. "We should not forget about that. So there are people who put metal in something and maybe they have to do some decision making. But what is really changes their lives? What is something maybe they are not doing today and they want to do?"

This user-centric approach to product development is what separates truly successful construction tech solutions from those that fail to gain traction. It's about understanding the real needs and pain points of the people on the ground, and developing solutions that address these needs in a way that's intuitive and engaging.

The Funding Landscape in Construction Tech (for Reality Capture)

Our conversation also touched on the current state of funding in construction tech, providing valuable insights for entrepreneurs and investors alike. Patric Hellermann from Foundamental shared his perspective on the pre-seed and seed funding landscape, painting a picture that might surprise some.

Contrary to the narrative of a funding crunch, Patric notes that there's still significant liquidity in the market for promising startups. "The exact opposite is happening for actually most of the deals at pre-seed stage in Europe, in the U.S. Even in India, you have still have a very liquid pre-seed and seed market. And with liquidity come actually ridiculously large rounds."

This observation suggests that while the days of easy money might be over, there are still ample opportunities for startups with strong ideas and solid execution. However, Mo cautions against unrealistic expectations, especially for first-time founders. The landscape has changed, and the bar for funding has been raised.

Gone are the days when a startup could raise millions with just an idea and no product or revenue. Now, investors are looking for more substance – early traction, a clear market need, and a strong team. The exception to this rule seems to be in specialized areas like AI, where the potential for groundbreaking innovation can still attract significant funding at very early stages.

This changing landscape presents both challenges and opportunities for entrepreneurs in the construction tech space. On one hand, it means that startups need to be more prepared and further along in their journey before seeking significant funding. On the other hand, it also means that those who do secure funding are likely to be more robust and have a higher chance of long-term success.

The Future of Reality Capture

As we look to the future of reality capture in construction, several exciting possibilities emerge. Mo sees potential for innovation in several key areas:

Firstly, there's the prospect of autonomous capture technologies. As mentioned earlier, robotics could play a significant role here, especially for large projects. Imagine swarms of drones or ground-based robots systematically capturing every detail of a construction site, providing a level of coverage and consistency that would be impossible with human operators.

Secondly, improved data quality is likely to be a major focus. As capture technologies become more sophisticated, the quality and detail of the data they produce will increase. This, in turn, will enable more accurate and insightful AI analysis.

Thirdly, advancements in scan-to-BIM technology hold great promise. The ability to automatically generate detailed Building Information Models from scan data could revolutionize how construction projects are planned, executed, and maintained.

However, Mo emphasizes that the most successful innovations will be those that truly engage users and provide tangible value on the job site. It's not just about creating impressive technology; it's about developing solutions that make a real difference in the day-to-day work of construction professionals.

As we wrap up our conversation with Mo, one thing becomes clear: the field of reality capture in construction is far from saturated. Despite years of development and hundreds of millions in investment, there are still vast opportunities for innovation and growth. For entrepreneurs and investors willing to dig deep, understand the real needs of the industry, and develop user-centric solutions, the future looks bright indeed.

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Companies mentioned

HoloBuilder, Faro, OpenSpace, Matterport, Disperse, Versatile, Indus.ai, Doxel, Cupix, IPX, Ricoh, XYZ Reality, BuildDots, Autodesk

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Keywords

reality capture, construction tech, AI in construction, HoloBuilder, startup funding, user adoption, scan-to-BIM, construction innovation, robotics in construction, construction data management