Builders VC Company Profile

Background

Builders VC is a venture capital firm established in 2014, headquartered in San Francisco, California. The firm is dedicated to revitalizing antiquated industries by investing in entrepreneurs who combine technical acumen with operational expertise. Builders VC focuses on sectors such as agriculture, manufacturing, real estate, and healthcare, aiming to drive innovation in these traditional fields.

Key Strategic Focus

Builders VC's strategic focus is on supporting startups that modernize legacy industries through the application of advanced technologies, including artificial intelligence, machine learning, and data analytics. The firm targets companies operating outside of Silicon Valley, emphasizing the importance of industry experience and technical knowledge. By investing in sectors with historically low IT expenditure, such as agriculture and industrial technology, Builders VC seeks to drive significant transformation and efficiency improvements.

Financials and Funding

In January 2022, Builders VC announced the closing of its second fund, Fund II, with a total of $250 million. This fund focuses on investing in antiquated industries, including agriculture, food, supply chain, industrial, and logistics sectors. Previously, by June 2018, the firm had closed on a $175 million fund focused on Series A investment opportunities, with typical check sizes ranging from $3 million to $10 million.

Portfolio Development

Builders VC has a diverse portfolio of approximately 79 companies, spanning various industries. Notable investments include:

Colossal Laboratories & Biosciences: A biotechnology company focused on de-extinction and species preservation.

280 Earth: Develops Direct Air Capture systems to extract carbon dioxide from the atmosphere, converting it into biomass for sustainable products.

Dozr: An online marketplace connecting equipment renters with lenders, facilitating the rental of various types of equipment.

SafeAI: Retrofits heavy equipment for autonomous applications in the mining and construction industries.

SomaDetect: Provides real-time, automated analysis of milk quality using machine learning and artificial intelligence.

These investments reflect Builders VC's commitment to supporting companies that leverage technology to transform traditional industries.

Technological Platform and Innovation

Builders VC differentiates itself by investing in companies that apply cutting-edge technologies to modernize legacy industries. The firm emphasizes the use of artificial intelligence, machine learning, and data analytics to drive innovation and efficiency. By focusing on sectors with historically low IT adoption, Builders VC aims to facilitate significant technological advancements and operational improvements.

Leadership Team

The leadership team at Builders VC comprises seasoned operators and investors with extensive experience in scaling venture-backed companies. The team includes professionals who have successfully led companies such as Bower & Wilkins, Bolt Threads, Skybox, Context Relevant, Climate Corp, Udemy, and Sprout Social.

Competitor Profile

Market Insights and Dynamics

The venture capital landscape is highly competitive, with numerous firms seeking to invest in innovative startups across various industries. Builders VC distinguishes itself by focusing on antiquated industries that are ripe for technological transformation, a niche that offers substantial growth potential.

Competitor Analysis

Key competitors in this space include:

CRH Ventures: The venture capital unit of CRH, focusing on ConTech and ClimateTech startups across the construction value chain.

Home Depot Ventures: The venture arm of Home Depot, investing in businesses that solve challenges for Home Depot's customers, with an emphasis on early and growth-stage companies.

These competitors also target traditional industries but may differ in their specific investment strategies and areas of focus.

Strategic Collaborations and Partnerships

Builders VC enhances its market position through strategic collaborations and partnerships. The firm has established a startup studio, B2, to provide portfolio companies with comprehensive services, including data analytics, performance marketing, customer acquisition, and mental health support. This initiative reflects Builders VC's commitment to supporting entrepreneurs beyond capital investment.

Operational Insights

Builders VC's strategic focus on antiquated industries positions it uniquely in the venture capital landscape. By investing in sectors with low IT adoption, the firm identifies opportunities for significant technological transformation. The emphasis on supporting entrepreneurs with industry experience and technical expertise further strengthens its competitive advantage.

Strategic Opportunities and Future Directions

Looking ahead, Builders VC aims to continue its investment in startups that modernize traditional industries through technology. The firm plans to leverage its expertise and resources to support entrepreneurs in driving innovation and efficiency in sectors such as agriculture, manufacturing, real estate, and healthcare. By focusing on these areas, Builders VC seeks to capitalize on the substantial growth potential inherent in transforming legacy industries.