OpenSpace, a construction analytics startup company, has raised $55 million in Series C funding. Founded in 2017, the San Francisco tech company uses AI, cameras, and other technology to make a complete record of a construction job site. OpenSpace business customers have used the product to capture images from over 4 billion square feet of construction projects. The construction startup has increased revenue by 300% over the past year and increased its customer base by 150%.
Investors in OpenSpace AI Analytics Technology
Investing in the AI analytics company comes from a growing list of firms. The Series C funding round was led by Alkeon Capital Management, an investing company with offices in New York, San Francisco, and Hong Kong. In addition, the business has received investments from PSP Ventures, Lux Capital, Menlo Ventures, and Zigg Capital. Menlo Ventures, established in 1976, has a portfolio of successful companies, including 6 River Systems (acquired by Shopify), Scout (acquired by Workday), and Uber. In total, OpenSpace has raised $88 million in funding from investors.
"OpenSpace's combination of advanced AI technology, an easy-to-use platform, and an exciting product roadmap positions the company well for further growth in this rapidly advancing industry," said Alkeon General Partner Mark McLaughlin.
The potential for global expansion is a crucial reason driving investing interest in the analytics startup company. "One of the reasons we're excited about OpenSpace is that the image-based platform can be easily used on projects around the world, with minimal barriers to adoption for new regions or languages," said GreenPoint Partners General Partner Ryan Shmeizer. Today, OpenSpace is already used by business customers in more than 50 countries.
AI Technology for Construction
Image processing, classification, and similar uses of AI have been used for facial recognition for years by companies like Facebook and Apple. OpenSpace is different because it is using AI image processing technology to make construction projects more efficient. The OpenSpace vision engine starts by capturing images and videos from a construction job site. The startup then uses computer vision to organize the images and automatically label critical features of the image, such as critical areas on the ground and walls of a construction project.
Further, the AI startup business makes reporting easier for business owners and others in the construction business. The startup has developed progress tracking technology. That means that a construction company can easily calculate its progress on a project and improve coordination between construction trades.
Construction Tech Pricing Strategy
OpenSpace pricing has three tiers. The company offers a free tier for construction jobs up to 10,000 square feet in size. To access all OpenSpace features, including analytics, OpenSpace uses custom pricing for its project and enterprise tiers. The startup charges a price as a percentage of the construction value. As a result, the company is likely to focus on mega projects since it stands to grow even faster.
The AI analytics startup may grow even faster as the federal government spends more on infrastructure projects. President Biden's infrastructure plan represents a significant opportunity for the construction business. The federal plan includes more than $600 billion for transportation, $50 billion for semiconductor manufacturing, more than $200 billion for housing projects, and $100 billion for school construction and upgrades.
Bruce Harpham is an author and marketing consultant based in Canada. His first book "Project Managers At Work" shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.