US-based venture capital firm Brick and Mortar Ventures closed its first dedicated fund at $97.2m yesterday, raising capital from a host of corporate limited partners.
The LPs include special materials producer Ardex, design software vendor Autodesk, building materials supplier Cemex, engineering consultancy FMI, construction data modelling software producer Glodon and Ferguson Ventures, the investment arm of plumbing supplies distributor Ferguson.
Construction equipment manufacturer Hilti, construction firm Obayashi and equipment rental services provider United Rentals also provided backing, along with Dysruptek, the corporate VC arm of architecture firm Haskell, and Sidewalk Labs, a subsidiary of internet and technology conglomerate Alphabet.
Founded in 2015, Brick and Mortar Ventures makes investments of $1m to $4m in seed and series A-stage software and hardware developers in the architecture, engineering, construction and facilities management sectors, and is open to providing follow-on funding.
The firm invests in North America, Europe and Australia, and is led by founder and managing director Darren Bechtel, whose family owns engineering group Bechtel.
Each of the fund’s anchor investors share insight about their respective challenges to help inform investments. They can also collaborate with portfolio companies, exploring partnerships covering proof-of-concepts, co-development or commercial use.
The fund achieved its first close in January 2018. Brick and Mortar has stakes in more than 20 companies, 16 from investments through the fund. It has exited construction software developer PlanGrid and preconstruction software producer BuildingConnected in acquisitions by Autodesk totalling $1.15bn.
The Brick and Mortar portfolio currently includes eco-friendly modular house manufacturer Connect Homes, virtual-reality training tool provider Serious Labs, contractor-payment platform LevelSet and construction employee management software producer Rhumbix.
