TLDR:
- Ironspring Ventures launched a $100 million fund for industrial-focused startups, including construction technology.
- The firm plans to invest in 20 startups at a rate of four or five per year, with check sizes ranging from $2 million to $4 million.
An Austin-based investment firm, Ironspring Ventures, recently announced the launch of its $100 million Fund II, aimed at investing in industrial-focused startups, including those in construction technology. This follows the success of their $61 million Fund I from 2020. With Fund II, Ironspring plans to invest in 20 startups over the course of a few years, with check sizes typically ranging from $2 million to $4 million.
The decision to create Fund II was in response to challenges facing the construction industry, such as material prices, labor shortages, infrastructure stagnation, and supply chain inefficiencies. Ironspring believes it is well-positioned to address these issues and evaluate startups based on their potential to tackle these industry problems.
The firm focuses on companies throughout the design and build lifecycle, with a particular interest in automation solutions for commercial, industrial, and infrastructure construction. Ironspring is set to inject capital into startups across manufacturing and supply chain logistics, including companies like Goodship, Base Power, Wilya, and Cargado.
While contech funding saw a decrease in 2023, Ironspring’s move to launch a second fund reflects a growing confidence in the industry. The firm’s investment strategy has been successful in backing startups like Document Crunch, Handle, and Join, which offer innovative solutions for contract management and payment rights in the construction sector.
Overall, Ironspring’s $100 million fund signals a continued interest and investment in technology and innovation within the construction industry, aiming to address key challenges and drive growth in this sector.
