What's really happening in AEC tech adoption in August 2024? We've crunched the objective numbers to give you the inside scoop. Our AEC Tech Internet Index cuts through the hype to reveal true trends.

Find all data here: https://www.foundamental.com/perspectives/internetindex

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Web traffic makes a non-arbitrary proxy of adoption trends when we use it at scale.

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The Problem With Poor Signals In AEC Tech

Let's talk about the elephant in the room - the venture world, including AEC tech, loves to hype things up. We see it all the time: big fundraising announcements, flashy PR about team growth, and all sorts of noise that doesn't really tell us much about actual customer adoption.

These are what I call "poor signals". They're easy to publicize but don't give us the real scoop on whether a company is gaining traction. The stuff that really matters - customer adoption rates, genuine growth trends - that's often hidden from view. Unless you're in deep with a company, like during fundraising or as a potential key hire, you're not getting access to those juicy details.

This creates a murky picture of the AEC tech landscape. How can we judge where the market is heading if we can't see the real data? Sure, you could do a bunch of customer interviews, but that's still just anecdotal evidence.

That's where the AEC Tech Internet Index comes in. We've been mulling over this idea for a while, and it's finally here. The big idea? Use web traffic as a proxy for adoption trends. It's not perfect, but it's a hell of a lot better than relying on those poor signals everyone else is using.

The Power Of Web Traffic Data

Now, I'm not saying web traffic is the be-all and end-all. It's got its limitations. But when we use it at scale, focusing on companies that have been around for a while and have built up some real presence, it becomes a pretty solid indicator of what's actually happening in the market.

We're pulling data from SEMrush, which is widely regarded as accurate (though no web traffic analysis is perfect, not even your own Google Analytics). We're looking at companies that have raised more than $25 million in equity, were founded in 2010 or later, and are still kicking around in the market.

What we're tracking is pretty comprehensive:

• Monthly risers: Who's making the biggest splash right now?
• 6-month trends: Which companies are showing consistent growth?
• 12-month champions: Who's in it for the long haul?
• Category trends: How are different sectors of AEC tech performing?
• Mindshare: Who's dominating attention in their category?

Key Insights From The Latest Data

Let's dive into some juicy findings from our August data:

Workflow software is killing it. Companies like HammerTech, Rumbix, and Procore saw 4-10x growth over the last six months. Adaptive takes the cake with a 16x increase, partly due to a big funding announcement.

Project management software is showing consistent long-term growth. A Japanese company called AntPAD is leading the pack, growing 7-8% month over month with incredible consistency. In the West, OpenSpace is doing similarly impressive numbers.

Outcome-as-a-service is the fastest-growing category. We're talking about companies doing things like energetic renovation and roofing services. It's validating what we've been saying for a while - this is what customers actually want to buy.

Small business SaaS in AEC tech is booming. It's the second-largest category in our sample, with 3.5 million web visits last month and still growing at a healthy clip.

Robotics and financial services are still tiny in terms of web traffic. Even well-funded companies like Build Robotics are seeing relatively low numbers. The robotics category clearly hasn't hit mainstream yet.

Digital general contractors are showing signs of recovery. Despite some high-profile insolvencies in the past year (RIP Katerra), companies like Mighty Buildings and Icon are seeing a rebound in interest over the last six months.

What This Means For Founders

If you're building in the AEC tech space, this data is gold. It gives you a clearer picture of where the market is actually heading, not just where the hype is. Use it to inform your strategy, understand your competition, and spot emerging trends before they become obvious.

For those in workflow or project management software, the market is hot but crowded. You'll need to differentiate hard to stand out. If you're in robotics or fintech for AEC, buckle up - you're in for a long ride, but the potential is huge if you can crack it.

And if you're working on outcome-as-a-service models? You're in the right place at the right time. The data backs up what we've been seeing on the ground - customers are hungry for solutions that deliver results, not just tools.

Remember, this index is a living thing. We'll be updating it monthly at foundamental.com/internet-index. Use it, learn from it, and let it guide you as you build the future of AEC tech.

The construction industry is ripe for innovation, and you're the ones who are going to make it happen. Let's build smarter, faster, and better - together.

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Companies Mentioned

Andpad, OpenSpace, Adaptive, HammerTech, Rhumbix, PlanRadar, FieldWire, Built Robotics, Mighty Buildings, Samara, EcoWorks, Sealed, Enter.de, Ergeon

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Patric Hellermann: https://www.linkedin.com/in/aecvc/

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#AECTech #ConstructionTech #VentureCapital #StartupTrends #ProjectManagement #WorkflowSoftware #OutcomeAsAService #DigitalTransformation

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