Industry Exchange: The Intersection of Construction Tech and FinTech

Proptech Collective held an interactive "industry exchange" discussion with Diana Tian and Justin Crist Lee, two of the authors of Alpaca VC's white paper on the intersection of Construction Tech and FinTech. Diana and Justin provide an overview of evolving industry trends and signals, and then the event moves into an interactive, facilitated discussion about the opportunities ahead.

💡 Key findings and themes discussed:

The construction sector has grappled with productivity challenges for decades. Our thesis is that a big source of inefficiency stems from the industry’s poor flow of capital. Our exploration led us to dive into three key ways value is currently being exchanged – the sizing of all three are massive and the pain points are substantial:

1. Payments are slow and create stain on businesses throughout the construction value chain.

2. Insurance is an expensive source of cost for businesses in the construction industry with premiums expected to rise.

3. Lending is a crucial lifeline in construction, and liquidity is a constant constraint for businesses.

The conclusion: FinTech products in Construction need to offer verticalized solutions to drive success of adoption. Due to the industry’s unique demographic and great deal of complexities, we believe that products need to be purposely built for specific industry use cases. We also think category expertise amongst founding teams are critical to build a product that the industry accepts.

Special thanks to our sponsors: PwC Canada, LMRE, BDC, FASKEN, Alate Partners, and Groundbreak Ventures.

Proptech Collective