Dive Brief:
- New York City-based Turner Construction has established Turner Ventures, a new venture capital arm that will invest in solutions for the AEC industry, the builder announced Monday. There isn’t a set budget for the funding arm, and it will be based on the identified opportunities and whatever needs arise from that investment, the company said.
- Turner, the largest construction firm in the country by revenue, will focus on early stage startups that focus on artificial intelligence, digitalization and decarbonization, according to a March 17 news release shared with Construction Dive.
- Via incubation and investment, Turner will offer startups access to the global construction industry, mentorships and jobsites to pilot new tech on, according to the news release.
Dive Insight:
Turner isn’t the only builder with an in-house investment arm — Boston-based Suffolk, for example, runs Suffolk Technologies, and Redwood City, California-based DPR Construction owns WND Ventures. San Francisco-based Webcor established Webcor Ventures in November to invest in emerging construction solutions.
Turner, via its program, will focus on two different areas. The first, ClimateTech, includes innovations that reduce carbon emissions, improve energy efficiency and develop sustainable materials. The second, PropTech, will contain tools that digitalize workflows, eliminate inefficiencies and enhance collaboration, according to the news release.
“Our industry is evolving at an unprecedented pace, and this shift compels us to invest in solutions that foster a more sustainable future,” said Jim Barrett, chief innovation officer at Turner.
Companies that Turner invests in will have access to the construction firm’s building ecosystem, which spans over $20 billion in annual construction projects and a global network of clients, suppliers and partners, per the release.
Startups at various stages of growth can leverage three different avenues of support via the program, according to the news release:
- Ignite: Turner provides mentorship and industry guidance to startups that are refining their solutions.
- Incubate: Startups collaborate directly with Turner to pilot, test and validate their innovations on actual projects.
- Invest: Turner makes strategic capital investments in high-potential startups, accelerating their growth.
Barrett said that Turner is already working with clients, designers and suppliers in the green cement space.
“We are looking to invest as well as broaden our use of sustainable products to continue Turner's goal of reducing carbon emissions on our projects,” Barrett said in an email to Construction Dive.
Following a down year in 2023, contech funding stabilized in 2024 after a marginal 2% gain in spending from $3 billion in 2023 to $3.1 billion in 2024, according to Cemex Ventures, the contech-focused venture capital arm of Monterrey, Mexico-based building materials firm Cemex.
However, investors were far more active, the report noted, completing 325 deals in 2024, compared to 236 deals in 2023. AI in particular was a driving force for the upswing, as builders race to adopt and integrate the tech to maintain a competitive edge.
