SINGAPORE, 22 JUNE 2023 - Frontline Industrial Software today announced that it has raised a $700k seed round led by Cocoon Capital, as well as other investors such as Plug and Play, Brain VC Fund and Entrepreneur First to revolutionize construction planning with its proprietary simulation and optimisation software. The software uses artificial intelligence to identify the most efficient and cost-effective construction plans for complex infrastructure, civil, energy, industrial and residential projects. The optimization is done in seconds instead of several hours, helping construction companies save significant time and costs when delivering complex projects.
Construction projects often involve thousands of inter-connected activities that compete for the same resources. Developing an optimized construction plan is therefore traditionally a very complex and time-consuming task, even for current project management software solutions. Due to the time pressure faced in the industry, developing a sufficiently optimized plan is therefore rarely even possible. As a result, construction projects waste precious time and resources. Frontline believes the global construction industry loses up to $96 billion every year due to the lack of proper project management.
With Frontline, construction teams can simulate thousands of options and find the most cost and time-effective solutions. This is a significant improvement compared to existing construction planning tools that offer limited options for optimization.
Luis Martinez, CEO and Co-Founder of Frontline Industrial Software, said: "Frontline’s ‘plug-and-play’ solution seamlessly integrates into the existing work processes of construction companies and uses existing data to deliver insights that were simply not available before." Frontline's software is already being used by international construction companies in the infrastructure, energy and residential sectors. Customers have seen project timeline savings of up to 3 months and a 6% reduction in costs, which is significant in a slim-margin business.
A report by McKinsey & Company states that construction technology investments grew from $1 billion in 2017 to $10 billion in 2020 [1], signalling a strong interest in increasing efficiency. A survey by KPMG found that 91% of construction industry executives believe that digital transformation is important for their business while only 19% have a digital strategy in place [2].
Frontline's technology addresses the productivity challenges faced by the industry, making it a timely and extremely cost-efficient solution.
"We are excited to support the Frontline team as they continue to drive innovation in the construction industry. With the estimated $26 billion global construction technology market by 2027 and the widespread adoption of digital productivity solutions by over 80% of construction companies, a substantial market gap awaits smart software that optimizes project execution", said Will Klippgen, Managing Partner of Cocoon Capital.
About Frontline Industrial Software Pte. Ltd.
Frontline Industrial Software is a construction planning simulation and optimization platform founded by Luis Martinez and Ruiqi Ding. The company has developed proprietary optimization algorithms that enable construction companies, operators and contractors to quickly identify best-in-class construction plans with optimal activity sequencing and resource allocation. Frontline’s software helps construction companies save time and money while improving efficiency.
About Cocoon Capital Management
Cocoon Capital Management is a Singapore-based venture capital firm investing in early-stage, enterprise and deep-tech tech companies across Southeast Asia with assets under management of more than $60m. The fund invests within the medtech, fintech, insurtech and other enterprise tech verticals. It has made a total of 29 investments to date. With its slogan “Dare to Change™”, it differentiates itself by working closely with its portfolio founders to unleash their potential to change the world. Investments include Frontline Industrial Software, Augmentus, BuyMed, Qashier, TransTrack, SensorFlow and See-Mode Technologies. Learn more at cocooncap.com.
About Plug and Play
Plug and Play is a global innovation platform headquartered in Silicon Valley. Since 2006, they have established accelerator programs, corporate innovation services and an in-house VC, facilitating rapid technological advancement. With a presence in over 35 locations worldwide, Plug and Play offers startups the necessary resources to succeed. Their thriving startup ecosystem includes over 80,000 startups, 550 corporate partners and active investments from leading Silicon Valley VCs. The platform fosters connections through 700+ networking events annually and their community has raised over $9 billion with successful portfolio exits including Danger, Dropbox, Lending Club and PayPal.
About Brain VC Fund
Brain VC Fund is an early-stage Venture Capital firm focused on leading Artificial Intelligence startups with the potential to transform industry value chains. The fund is managed with the vision of becoming the global reference for deeptech investments in emerging markets.
About Entrepreneur First
Entrepreneur First invests in exceptional individuals to build startups from scratch. They bring together people with extraordinary futures to develop their most ambitious ideas and raise money from the world’s best investors. The startups co-founded in its programmes are now worth over $10B.
References:
[1] https://www.forbes.com/sites/forbestechcouncil/2021/04/21/why-construction-technology-is-only-scratching-the-surface-of-its-potential/?sh=5e6e5ba1340c
[2] https://constructionexec.com/article/construction-technology-is-booming-but-skills-gaps-remain-a-challenge
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Press Release from: Frontline
