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
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