Two years ago Shubhankar Bhattacharya [https://www.linkedin.com/in/ACoAAACgtCwBhJcCtobITjmxko5HwbmuGXu3OQg] of Foundamental [https://www.linkedin.com/company/foundamental/] wrote a great article on The Future of Construction Supply Chains. Foundamental is one of the world’s top construction-tech investors, so his thoughts are worth reading.
As an investor that looks for supply chain, logistics, and distribution investment opportunities in large industries in emerging markets, we are fascinated by construction and construction supply chains.
Shub does a great job of identifying pain points in the traditional contractor model. We also believe that marketplaces and supply chain are a big opportunity here. We caution that anyone who wants to replace existing players and dis-intermediate an industry must clearly understand the value that current intermediaries add and have a clear plan to replace that value.
We have walked away from many construction materials supply chain opportunities because the founders seemed to believe that existing intermediaries had no real value add. That is a recipe for failure.
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