Empowering and connecting construction projects

By Kai-Stefan Schober

Benetics offers a digital solution that connects management and on-site construction workers with the goal to save time, boost productivity, and gather valuable data to support decision making.

This interview is part of the series " Construction Startup Radar ".

Welcome to the Construction Startup Radar! Please introduce yourselves and your team

Ferdinand Metzler: I’m Ferdinand, a native Austrian and the CEO of Benetics. After selling my last startup to a large online retailer, I co-founded Benetics two years ago in Zurich with Aaron Shon, our CSO, and Johan Tibell, our CTO.

Can you describe your company and business model? How do you differ from similar startups?

Ferdinand:There really isn't a "similar startup." This may sound bold, but we've found a niche with Benetics. Our goal is to fundamentally digitize the management and execution of construction projects. There are already other welll-known startups and a few scale-ups in this space focusing on overarching construction management, targeting large contractors with multiple hierarchies. However, they often struggle to reach the workforce on the ground. We call them "The Makers of the Construction Site." These workers make up the majority of the construction industry and have different needs to management personnel. Our app provides them with solutions to simplify their tasks, save significant time, and boost productivity. Simultaneously, we gather important on-site data, which will provide top management with valuable insights for decision-making. Imagine building a bridge: the stronger the pillars, the greater the potential for innovation in connections and the overall structure.

Aaron Shon: Our solution offers a mobile app for on-site workers and a desktop application for office staff and project managers. These easy-to-use tools connect the office and the construction site by providing access to the latest plans, task management, defect tracking, and reporting. Various AI solutions have been implemented, such as the Benetics Voice Assistant, which customers describe as a true game changer. This has been developed in close collaboration with trades like electricians, HVAC specialists, roofers, painters, and plasterers after understanding their specific needs for better work outcomes.

How did you come up with the idea for your company?

Aaron: There’s no industry with a greater impact on the economy, the environment, and people’s lives that has as much ground to cover in digital transformation as construction. This presents both enormous potential and a responsibility. My realization came when I struggled with the analog processes of the craftsmen working on my house.

Ferdinand: Before my studies, I worked as an electrician on construction sites myself. That was 10 years ago, and not much has changed in terms of digitalization since then. The necessary overall revolution, as well as many smaller innovation steps, are still pending. We believe the time is right now. Construction must and will get better.

What has your experience been of the funding process?

Ferdinand: We mainly bootstrapped a year and a half ago with the support of business angels. Our first external funding round is still in preparation for the end of 2024. Before bringing in VC money, we wanted to have more than just a prototype. That's now the case, as confirmed by our customers. Compared to other industries, we expect funding should be easier. The momentum is just beginning – the potential and traction should be compelling arguments for investors.

What will the construction industry look like in 2025?

Ferdinand: We will likely see a digital landscape in flux: startups and solutions sprouting like mushrooms, each being adopted to varying degrees. Consolidation will be inevitable. Let’s take a bold look at 2030 instead. Merging point solutions with new software and hardware innovations will set a new standard for collaboration. Construction projects will be significantly more productive. The shortage of skilled workers will be less of a burden. Sustainability goals will be more measurable and achievable. The construction world will be a better place, with improved physical and mental conditions for those involved. We'll look back and wonder why the transformation took so long and whether we could have accelerated the journey. Every company, association, and government will need to reflect on their role. If productivity in 2030 is just 3% higher, Europe alone could well have saved millions in opportunity costs each day if it had acted more quickly. Not to mention the environmental resources that were wasted due to construction errors.

What role does or can digitalization play in the construction industry?

Aaron: Imagine digitalization as a constantly flowing river that has formed a massive reservoir within the construction industry. The backlog compared to other industries is immense, as are the opportunities. That’s a main reason why construction productivity has stagnated over the last 25 years, while other key industries have seen average productivity gains of over 40%. We have learned that project managers and on-site workers save up to one hour per day with our solution. That translates into more than 8% productivity growth just with our basic app functionalities. The role digitalization plays across all areas of construction is undeniably vast. Predictive functionalities can significantly enhance safety, and entirely new building solutions such as robotics are already seeing early adoption. Construction companies must strike a balance in their digitalization strategy: expand proven methods while staying open to experimentation.

Which key trends do you see in this context?

Ferdinand: No one denies the profound impact digitalization brings to the construction industry, but very few construction workers actually benefit from it. Many companies, and even workers, still believe nothing beats pen and paper and phone calls in terms of speed. And this has been true – until now. Our voice assistant can speed up traditional manual working methods tenfold. We also keep hearing fears about senior employees not being able to handle new technologies, but this is a myth that’s unfair to user-friendly digital solutions like we provide and the people themselves. Whose grandparents still go to travel agencies? They book their trips online. And who are the top content providers in family WhatsApp chats? You got it.

What is your company vision over the next five years?

Aaron: Empowering and connecting everyone involved in construction projects to significantly boost productivity, sustainability, and personal well-being. We want to improve manual work as it is done today and optimize it with digitalization by a factor of 10. Construction becomes teamwork at scale.

As a startup, what is your next goal?

Ferdinand: From a product perspective, we will continue to develop our voice-to-machine interface, the Benetics Voice Assistant, for both tradespeople and overarching functions like quality assurance and defect management. Geographically, we are reaching out into the USA and Canada, aiming to secure our first development partnerships there. Financially, our goal is to attract long-term investors to help us grow our offerings and expand our market reach.

What partners do you need to achieve these goals?

Aaron: For the Benetics Voice Assistant, we seek medium-sized construction companies wanting to use the current version in real-life scenarios, both in Europe and North America. For financial resources, we seek investors who recognize and value our potential and want to advance the company in a fruitful partnership with us.

What investments are necessary for your clients to start working with your solution?

Ferdinand: Nothing more than a bold spirit, a bit of time, and a strong commitment to leveraging the opportunities of digitalization in close partnership. Our solution is extremely quick to deploy and can be used both independently and within an existing digital ecosystem. Our pricing is straightforward, fair, and transparent: customers pay a monthly license fee per user after testing our software for free.

Finally, what is your favorite story about startup life in the construction industry?

Ferdinand: People in construction are known for being pretty tough and rarely showing emotion. A couple of weeks ago, we met with one of our partners, the CEO of an electrical company with 150 employees, at a rather unusual location – a service station near Munich – to demo the beta version of our voice assistant. We asked him to try it out himself. He did and couldn’t believe his eyes or ears. He was literally moved to tears. In that moment, we knew: this has potential.

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