1001 Startup Ideas - Collaboration Platform for RE Construction Projects
What is the idea?
This 1001 startup idea is to make a collaboration platform for Real Estate Construction Projects where all involved stakeholders can share the updates, documents, approvals, schedules and photos on-the-go. This will increase productivity and eliminate avoidable delay in projects quality, cost, and time.
According to a report on Businesswire.com, the global construction management software market is set to grow at a CAGR of 14.96% during the period 2016-2020. One of the primary drivers of the market is the increased investments in infrastructure development.
According to a report on prnewswire.com, the increased investment in infrastructure development across APAC, the Americas, and Europe is likely to affect the growth of the construction tractors market during the forecast period. It is expected that infrastructure spending in APAC will reach $5.36 trillion a year by 2025, representing 60% of the world's total infrastructure.
There are a few companies which are in the segment providing ERP solution for construction, contractor bidding management, project reporting & inspection reporting, etc. Textura, an Illinois-based company, recently acquired by Oracle Corporations, offers complete online workflow for the construction industry to help them save time, money and reduce the risk. There is another US based company, SKYSITE having file sharing, document distribution, and project collaboration application.
Pain Point & Target Audience
The target audience for the startup would be Real Estate Construction companies who work across multiple projects or locations.
Construction projects involve several stakeholders at different levels, right from architectures, engineers, contractors, accounts & finance personnel, and managers. And it gets a complete mammoth of a task to maintain a proper coordination between the tasks and the stakeholders for the smooth project execution. Also often these stakeholders are located at different locations and are not able to keep each other updated with the latest developments, so either end up spending a lot of time in meetings and calls, or end up with not an update; these add significantly to the overall risk to the project.
The tool can boost productivity and improved collaboration with its set of tools for the construction industry. It will integrate steps and processes right from design, project initiation to completion, keeping all the involved parties up-to-date with the information in the real time.
The tool will also bring a high level of transparency in the management reporting as all the actions and amendments made will be documented and stored in the cloud.
The startup will primarily work on B2B SaaS business model with Real Estate Construction companies. As the project cycle for construction projects are of longer duration, the startup can have annual subscription plans based on the number of users. And it can provide some specific on-demand services like accounting and detailed project analytics and reporting for an additional fee.
Way to market
The first step would be to make an easy to use software for construction industry involving project management, cloud-based documentation, and reporting. The startup would need to complete the mobile applications as well so that the tool can be used by field staff on-the-go. And it must also have the functionality to work offline, as at times site locations do not have access to the internet.
Once the software development and testing are done, the startup should start with small and medium scale construction firms with no more than 20 stakeholders involved in the projects. This will help the startup get the feedback in the controlled environment and further refine the product. Post which the startup should start approaching large construction firms and pitch their product.
The startup should target to complete the launching draft of their software and the mobile applications in 3-4 months. Once the product is ready, the startup should acquire at least 5-6 projects to roll out their product over next six months.
Investment Needed For Prototype
As the startup should aim to develop the initial version of the software in-house, it should not have high expense rate. It should pitch to raise $75 - $100k from angel investors from the Real Estate industry, who can further help in the beta testing of the software. In case you the expertise and demonstrable ability to execute it, you can apply for Inhab’s real estate acceleration program at www.inhab.xyz/apply . Inhab is a global real estate accelerator that is focussed on fast tracking real estate tech startups.
The team must include a full stack and application software to lead the software development cycle. The startup also needs to have other co-founders from Real Estate Construction and Project Management background to provide valuable insights for software development and refinement. The Real Estate experience will also help in onboarding new users for beta testing.
Investors / Expert Take
Y-2016 witnessed over $2.6 billion in funding to Real Estate software and platform startups across 277 deals. And according to a report on cbinsights.com, Y-2017 is set to register 10% increased in funding to the category making the total funding over $2.9 billion.There is a tremendous opportunity in the category and domain expertise will separate the winners from the slackers, who will be solely focussed on building a high-tech piece of software. The startup needs to work on ground zero with a keen understanding of the problem they are solving, and then demonstrate the perceivable benefits to the early adopters of their tool. In case you are looking at scaling or launching this venture, you can apply for our virtual acceleration program Excelrate on the Yostartups website; it will help you in streamlining and structuring your startup idea. We have limited scholarships and discount packs for deserving startups, depending on the strength of your application, you may qualify for a discount.