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I spent 5 years working on one of these startups. I'm not sure that the highway lane constraint is fundamental to the reality that contech startups tend to fail, but I think the assessment about the hubris of contech startups is fair. The first lesson to learn is that construction doesn't happen behind a laptop or on a phone. From your user's perspective, time spent fiddling with your app is time not spent on real work. So naturally you focus on selling to the "office workers" who spend more time on planning and administration. The problem with that segment is that the tools they already have are good enough. Construction projects always take far longer and cost far more than expected because of what's happening in the field, not because of what's happening in the office, so software simply isn't a bottleneck in this industry. The fact that your tool was specifically designed for their use case, or has an AR feature that allows them to walk the site virtually, or whatever -- it's cool, and you can get a few sales that way, but it's not going to result in better project economics, so it's not going to revolutionize anything. |
The problem is that nobody can align the incentives of the tradespeople and the office folks when it comes to integrating into an information system together. You have to cross multiple organizational boundaries between owner, builder, contractor, and subcontractor of which very few people have a bottom up understanding. Mostly the people with the incentive to put everyone on a single platform (owner / builder) think very low of the tradespeople, which is why tradespeople are beginning to make more money than the accountants and PMs.