Think Like Odysseus

A construction tech startup’s go-to-market strategy is the most important thing. Sorry product!

I was admiring the size, scale and longevity of the Kallimarmaro in Athens, Greece.

I’ve had numerous conversations about why there can be 50 startups tackling the same problem with no clear winner. Because the construction industry is so fragmented, growth and scale with a reasonable CAC (customer acquisition cost) is not common. We’ve seen a lot of great construction technology companies grow organically at the pace of construction projects (slow)… but a lot of these companies do not fit within the venture timeline of growing from $0 to $100M in recurring revenues within a 6-8 year time frame. 

From scanning the 50+ different project planning tools to the 50+ different digital form tools, I have yet to come across a startup with traction on the brink of that “hockey stick” growth. Each of these startups are tackling different market segments, different customers and have slightly different products — don’t get me wrong, they are adding a lot of value to their customers — but none are convincing enough to take a bet on. (Of course, this is my personal opinion 😉.)

Having been an end-user myself, I used to think that the best product would win. I’ve made many competitive analysis charts comparing every feature across a tech category to make sure I was truly using the best tech. Now that there are thousands of construction tech companies out there, software tech overload is real and the go-to-market is what really drives the winner of batch. There just isn’t enough time in a day to do adequate diligence and startups change and pivot so quickly that a startup that didn’t fit your need 6 months ago could very well be the best tech for you today.

When evaluating startups, I think about what pain point they’re solving, how they are initially tackling it, and what the in between looks like. I love it when the initial product doesn’t look anything like what the end product should be, but the path getting there makes so much sense. That initial product is the Trojan Horse. 

Is there some feature or simple tool that we can build for the intended customer that solves an annoying, every day problem, yet allows the startup to continuously build on top of? And, is there some way to leverage another part of the supply chain to help that startup scale? 

ALSO, let’s not forget that most people in construction may not be a social media or have a LinkedIn. AND they are protective with sharing their phone numbers. How do you get in front of these people? 

If you haven’t picked up on it already—construction is hard to sell to. It’s not impossible, but it requires a Trojan Horse. Gone are the days of just going down the list of ENR top 400 and collecting those logos as customers. The logos of the top 20 in pitch decks are pretty standard these days.

I can’t leave you hanging with all talk and no substance so I’ll highlight one real-life example and a made-up (or not 😏) startup and my approach to tackling go-to-market.

Curbio

One great example of a startup with a unique business model and go-to-market strategy is Curbio. Full disclosure: this is a Brick & Mortar Ventures investment. Curbio provides pre-sale home renovation services. The business model is a win-win-win situation for the homeowner, the realtor, and Curbio. The homeowner can have Curbio renovate their home before selling it without paying Curbio until the home is sold. Curbio has streamlined many processes within the renovation scope of work and has data regarding the best renovations to make to fetch a higher home value. They are able to scale very quickly because they can tap into the realtors’ networks to acquire customers. SLAM DUNK.

Fictional Project Planning Tool

Now let’s run through a fictional of example of how I devise a strategy. Say I want to tackle project planning. I want to build the next P6 replacement that becomes the standard scheduling tool for construction. Everyone (especially me) hates P6, but it’s a contractual requirement.

I would start by thinking about who within the project team has to review a project schedule (this can be the architect, the owner, the project manager, the foreman, etc. etc.) and map all of this out. Then I would think about building something that adds value to an underserved stakeholder and provides the ability to collaborate with others within the project team—and also across their own organization. This does not—and maybe should not—be another Gantt chart tool. This also doesn’t—and maybe should not—look like another scheduling tool. Maybe it’s a site logistics plan. Maybe it’s a materials management software. Maybe I’m going to build something that tracks deliveries. The main thing though, is that this initial tool that I’m building must capture data that is relevant for the overall construction project schedule. The interesting thing about the construction supply chain is that the same data can come from multiple sources. Sadly there’s a lot of double entry, but if you can find a unique way to capture that data while adding value, you can build a bigger company on top of that.

I love thinking and talking about this stuff. If you ever want to bounce ideas, please feel free to reach out! What’s your Trojan Horse?