In this episode of Bricks, Bucks & Bytes, Owen, Martin, Dustin, and Patric dive deep into the biggest misconceptions shaking up construction and venture capital. Plus, we're joined by Victor Muchiri from Barton Malow (a $5 billion general contractor) who reveals what tech actually works in the field.

What we cover:

Why Dubai developers are bringing $19 billion worth of construction in-house (and whether this trend will hit the West)

The shocking truth about that McKinsey productivity chart everyone uses in pitch decks

Why 8 out of 10 construction companies can't even define what a "project" is

Time Magazine's controversial VC rankings that reward management fees over actual returns

Victor's insider perspective on which construction technologies actually deliver results

The Pablo Escobar business model lesson that might change how you think about valuations

Key quote: "Construction companies can't even define what a project is. Eight different customers cannot define internally what a project is. One customer had eight different definitions. This is your business - the project is the equivalent of the order in manufacturing." - Patric

From Sequoia being mysteriously absent from "top VC" lists to why rats eating cash might be better than some investment strategies, this episode challenges everything you think you know about construction productivity, venture capital, and business models.

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Chapters

00:00 Introduction and Awkward Beginnings

03:08 Dubai's In-House Construction Trend

11:01 The Best Owner Logic in M&A

18:40 Market Dynamics and Developer Strategies

21:19 Construction Productivity and Industry Comparisons

30:45 Luxury and Value in Construction

32:09 The Economics of Markup and Intangible Assets

34:32 Current Trends in the UK Construction Market

36:02 Introduction to Barton Mello and Its Operations

38:36 Innovations in Construction Technology

41:31 Data Strategies in Construction

45:10 Defining Projects in Construction

49:59 Standardization Challenges in Construction

53:15 Engaging with Startups in Construction Technology

54:35 Navigating AEC Tech Startups

56:01 The Importance of Industry Expertise

57:09 Defining Success in Venture Capital

58:36 Exploring America's Top Venture Capital Firms

59:53 Evaluating Venture Capital Performance

01:01:42 Critiquing the Scoring Criteria of VC Firms

01:04:49 The Role of Sequoia in Venture Capital

01:08:25 Understanding the Power Law in VC Investments

01:10:19 The Impact of Management Fees on VC Performance

01:13:13 The Purpose Behind Controversial Lists

01:15:33 Top Podcasts and Their Influence