About This Episode

In this insightful discussion, Patric Hellermann and Shub Bhattacharya explore their investment thesis regarding AI versus data infrastructure, authoring tools, and systems of record in the architecture, engineering, and construction (AEC) technology space. They delve into why companies that serve as the "bathtub" containing AI capabilities may ultimately create more value than pure AI feature companies.

In This Episode

Patric and Shub discuss why AI-generated content in construction documents typically requires extensive editing, making authoring tools and systems of record crucial for deterministic outcomes.

They explore the "bathtub and water" analogy (credited to Stan from Rayon), where AI is like tap water—ubiquitous but a commodity—while the true value comes from the vessel containing it.

The hosts examine various types of "bathtubs" in construction tech, including ERPs, authoring tools for designers, data infrastructure companies, and systems of record that provide structure to unstructured data.

Shub and Patric analyze why it's significantly harder for AI-first companies to build data infrastructure around themselves than for infrastructure companies to incorporate AI functionality.

Timestamps

(00:00 ) - Introduction

(01:55 ) - Setting up the discussion topic: AI versus authoring tools

(05:13 ) - Thesis on AI-generated content requiring iteration and editing

(08:27 ) - AI becoming ubiquitous like "internet" in investment thesis

(13:28 ) - The "bathtub and water" analogy for AI and data infrastructure

(15:27 ) - Examples of "bathtubs" in construction tech

(18:07 ) - Challenges for AI-first companies trying to build infrastructure

(24:23 ) - The importance of data structuring and infrastructure

(28:56 ) - Agentic AI and its limitations without systems of record

(33:20 ) - Current landscape of system-of-record companies in construction

Resources or Companies Mentioned

Autodesk: Amy Bunszel mentioned regarding investment thesis about AI (https://www.autodesk.com/)

Speckle: Referenced as an example for 3D geometric data infrastructure (https://www.speckle.systems/)

UiPath: Discussed in context of workflow automation challenges (https://www.uipath.com/)

Procore: Mentioned as incumbent system of record for US contractors (https://www.procore.com/de)

Glodon: Referenced as a significant player in the Chinese market (https://www.glodon.com/en/)

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Foundamental: https://www.foundamental.com/

Patric Hellermann: https://www.linkedin.com/in/aecvc/

Shub Bhattacharya: https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/

Youtube: https://www.youtube.com/@foundamentalvc⁠

The Daily Blueprint: https://tinyurl.com/the-daily-blueprint⁠

#ConstructionTech #AIInvestment #DataInfrastructure