By Ty Findley, Co-Founder & General Partner
General contractors struggle with maintaining visibility of their jobsites. In fact, a recent Foundry survey found that 70% of construction professionals are challenged by a lack of visibility into materials specifically, and 55% face significant communication gaps between project management teams and jobsites on progress tracking. This absence of jobsite visibility has multiple causes including inability to map data siloes, minimal data source integration, no real-time feedback, and limited technology investment into progress tracking. Contractors crave greater visibility into jobsite activities to help solve key problems they face daily on the job. First, lack of visibility stymies coordination between contractors and subcontractors and leads to wasted time and construction delays. An estimated 75% of construction projects are delayed with a median delay of between 20%-40% of project duration. Clearly, lack of visibility creates inefficiencies that meaningfully contribute to this timing lag on the jobsite.
Further, jobsite delays subsequently lead to labor delays as worker schedules are thrown out of whack relative to on-the-ground progress. These labor inefficiencies can really add up, especially since anywhere between 40-60% of jobsite costs consist of labor expenses. Additionally, without visibility into jobsite progress, subcontractors, and general contractors don’t know how far they’ve deviated from a site plan on a particular component of work on the project. This information asymmetry drives up the cost of rework as straying from the site plan means more work has to be redone. Better jobsite visibility and progress tracking could reduce the overall rate of rework, an expense bucket which is estimated to contribute approximately 5-10% of total project costs. Lastly, the data that is missing from a visibility perspective still needs to be collected eventually, leading to additional expense required to manually track progress.
At Ironspring Ventures, we believe better progress tracking for general contractors has the potential to save billions of dollars on construction jobsites. Conservatively, assuming 1.9M construction jobs as a proxy for the US construction industry (assumes two jobs average annually per firm), we estimate the addressable market for software serving the space to be at least $3B in North America alone. It makes sense that the market opportunity is so sizeable as we have seen a number of companies tackle jobsite and progress tracking including INDUS.ai (acquired by Procore), Newmetrix (acquired by Oracle), and AVVIR (acquired by Hexagon). This roster of strong strategic exits combined with what we still see as a greenfield opportunity to service this market with a differentiated, AI-native platform motivated us to dive deeper into the reality intelligence and progress tracking vertical within construction. On top of demonstrated strategic appetite to acquire leading assets in the space, it is clear to us that the solutions in market today haven’t completely closed the data loop to provide true end-to-end visibility to general contractors across jobsites in North America.
Against this backdrop, we’re excited to announce our lead investment in Track3D’s $10M Series A round alongside great partners including Zacua Ventures and other great industry allies. Track3D has emerged as a standout player in the construction reality intelligence and progress tracking space with its AI-powered reality data capture platform that empowers general contractors to reclaim visibility over their jobsites. The company utilizes a hardware light approach that integrates with existing jobsite data sources to help visualize granular jobsite data onto a site plan, transforming a static rendering into a real-time, searchable dashboard that provides updates on jobs, subcontractor progress, material consumption, and other key metrics. Today, the product is able to document jobsites using reality capture to better measure activity, drive insights around project tracking, and use deviation analysis to compare the actual site against 2D and BIM models to check for errors on interiors and exteriors. Long-term, Track3D’s reality capture application has the potential to serve as a platform facilitating a whole host of applications across the construction jobsite including building out vertical AI agents, tracking safety violations, providing predictive analytics, and driving efficiencies in labor scheduling. Overall, Track3D’s vision is to deliver a single source of truth platform, helping break down data siloes across the construction ecosystem, reducing cost overruns, and increasing on-time project completion.
Track3D’s reality intelligence platform helps contractors complete projects on time and on budget
Track3D Co-Founder and CEO NK Chaitanya and team are well on their way to enabling the future of progress tracking and visibility capture across global construction jobsites, and we’re not the only ones excited to back NK’s mission. In this funding round, we’re joined by a stellar set of co-investors who deeply understand this space, including Zacua Ventures, Shadow Ventures, and numerous strategic investors from across the globe that are operating construction sites with Track3D daily. The fact that Hensel Phelps, one of the largest general contractors in the US and incredibly tech-forward through its innovation efforts at Diverge, is a proud customer of Track3D is a large vote of confidence in the platform and its strong differentiation in the marketplace. Hensel Phelps has raved about Track3D’s ability to be network agnostic, operate BIM independent, and offer competitive pricing, and it is just this kind of strong customer feedback that helps explain the company’s 10X ARR growth year over year. Track3D stands out for its commercial traction to date, having captured top blue-chip customers like PCI (in addition to Hensel Phelps) very early on in its journey.
Track3D’ co-founders NK Chaitanya, Kiran Gupta, and Vineeth Kumar
Track3D was co-founded by CEO NK Chaitanya, COO Kiran Gutta, and CTO Vineeth Kumar, a powerhouse trio that brings a breadth of experience across the construction technology ecosystem from having previously co-founded a consultancy focused on technology implementation for general contractors. The team has complementary skillsets that have enabled it to effectively balance founder-led sales, product innovation, and organizational investment to scale commercially at a pace rarely seen in construction technology. Further, NK, Kiran, and Vineeth possess deep networks in construction from their consulting experience and operate with a customer-first mentality that is infectious and critical for inking new enterprise and mid-market logo wins. Since its founding just over three years ago, Track3D has seen impressive adoption among a top players in construction, robust 10X ARR growth year over year, and significant progress innovating on and conquering its product roadmap. Ironspring Ventures couldn’t be more excited to partner with NK and the entire Track3D team to modernize an incredibly important part of the construction ecosystem through a novel AI platform for reality intelligence and progress tracking on jobsites across the globe.
Visit the Track3D website: track3D.ai
