Joey Kim

The difference between a $10K contract and a $100K contract is which budget you're competing for. Why startups can land contracts that are 10x larger than incumbents: A large platform focused on serving HVAC companies captures ~1% of their revenue. For example, a typical HVAC company making $1M pays the platform $10k. A startup, also specifically targeting HVAC companies, captures 4-10% of their revenue. The same $1M HVAC company pays the startup $40-100k. The difference is that the big-player platform is just another software expense, while the startup enables companies to operate with fewer employees. Replacing work lets your product capture a payroll budget that's 10x larger. This shift redefines your startup’s entire approach, while traditional platforms focus mainly on selling more seats and subscriptions. You focus on one industry and learn its operations inside out. You become part of their team. Big cos can’t work like this b/c they can’t focus solely & completely on a single vertical problem. Small teams can… and they have to. I’m interested in vertical AI companies that control entire workflows and are built by small teams close to operational work.

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2025 was a record year for the Construction Startup Competition, 563 applicants across 53 countries. Each year, I’m continually impressed by the strength and depth of innovation in the construction startup ecosystem. Selecting just eight finalists, representing roughly 1.4% of total applicants, is becoming increasingly difficult as both the quality and quantity continue to rise. A few insights that stood out this year: - European startups have overtaken North America in share of applicants for the second year in a row. Europe grew from 34% to 40% of total applicants, while - - North America declined from 33% to 30%. - The UK ecosystem remains strong and growing. The UK has consistently been the second-highest country in applicant volume (behind the US) and saw meaningful growth again this year. - Spain entered the top 5 applicant countries for the first time — a clear sign of growing momentum. - Sustainability continues to be a core focus, with ~29% of applicants in this category — up from last year. Over half of these startups are based in Europe, but North America also represents a steady portion (flat YoY). - Fleet management saw the most dramatic growth, with a 500% increase year over year, albeit from a small base. - Planning and scheduling startups increased significantly, while marketplaces declined. - Document and project management startups still make up ~10% of applications, highlighting ongoing pain points in project delivery. - Slight increase in later-stage applications, which now make up the majority of the pool. The innovation across the sector is broad, deep, and increasingly global. Looking forward to seeing how these trends evolve heading into 2026. Join us for the final at Trimble Dimensions this November. Register now at the link below: https://lnkd.in/gjhs9Exm

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