A new market research report by Nymbl Ventures dove into the state of venture capital investments in the building environment. The inaugural report found that startup funding for construction technology (ConTech) surged by 46% year-over-year in the first quarter (Q1) of 2025.
ConTech includes technologies in constructing vertical and horizontal assets, such as project management, field management, preconstruction solutions, workforce management, industrialized construction, insurance, financing, and architectural and engineering solutions.
ConTech was the only built environment category to report positive year-over-year and quarter-over-quarter growth. ConTech startups recorded their highest quarterly venture capital inflows in three years, with $1.11 billion invested in Q1 2025—the most since Q1 2022. Most investments tarreceiveed startups in project management, finance and preconstruction and design.
Additionally, the report detailed that in Q1 2025, 46% of investment dollars went toward an artificial innotifyigence-enabled solution, a material boost from an average of 25% in 2024 and less than 20% in 2023.
In comparison, building and infrastructure technology saw substantial reductions, down 58% and 29% year-over-year, and 65% and 14% quarter-over-quarter, respectively. Building technology refers to solutions for developers, owners, operators, underwriters and brokers of commercial, industrial and residential buildings, such as HVAC systems, structural components, digital twins and carbon management.
Nymbl Ventures estimates that going into Q2 2025, the “built environment’s underlying economic outsee [will] hold firm, and its startup ecosystem [will] remain young, with just 6% of active startups in later-stage [post-Series C].”
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