Cemex Ventures is a firm that believes in the power of technology and entrepreneurship to disrupt the construction industry. Pulse 2.0 interviewed Cemex Ventures investment manager Mateo Zimmermann Gonzalez to learn more about the construction-focused investment firm.
Mateo Zimmermann Gonzalez’s Background
What is Mateo Zimmermann Gonzalez’s background? Zimmermann said:
“I am currently the Investment Manager at Cemex Ventures, leading our Venture Capital efforts. I have over 15 years of professional experience working with consulting firms like Boston Consulting Group (BCG), private equity, and industrial companies. My educational background is in engineering and management. When I was working as a consultant, I was very involved with construction and construction-related companies in the industry practice and, during that time, I realized the impact that innovation could have on construction, an industry that was lagging in terms of productivity, technology adoption, and investment in innovation.”
“Being such a vital sector for society and such a large industry (14% of global GDP), I knew I had to do something to try to help the industry advance. So, I joined Cemex Ventures to help build a better future for the construction industry through open innovation, sustainability, and technology. Since joining Cemex Ventures, I have been involved in over 23 investment deals and multiple collaboration agreements between Cemex and startups to drive innovation and entrepreneurship forward.”
Evolution Of Cemex’s Thesis
How has your firm’s thesis evolved over time? Zimmermann noted:
“Our value proposition has always been the same since our conception in 2017: to foster the construction industry revolution, however, our scope has changed alongside the evolution of global macro trends, the technology landscape, and the needs of the industry. A good example is that about 5 years ago, when we identified a more decisive move to more Sustainability to help our planet and society, we widened our scope from Construction tech to also actively target Cleantech startup solutions with application to construction.”
“We look for the most disruptive solutions according to our four market areas – Green Construction, Enhanced Productivity, Construction Supply Chain, and Future of Construction – to invest in, partner with, and accelerate, so as new technologies appear, we try to operate at the forefront of innovation.”
“Adoption has also become a huge part of our firm’s thesis, thinking not just financially, but also strategically. Our parent company (Cemex) has some of the most competitive digitalization and sustainability objectives by 2030 and 2050, so testing the right solutions now is crucial to ensure large-scale employment in the future to achieve the goals our company has set out.”
Favorite Memory
What has been your favorite memory working for your firm so far? Zimmermann reflected:
“Over the last years, there have been many memorable moments for the team and for me.”
“I personally remember the first meetings with founders and entrepreneurs, being surprised by the level of talent, drive, and experience of the management teams. I remember my first investment in a company and the gratitude of the founding team in our support of them.”
“Also, when I look back, I believe we have made step-by-step achievements with Cemex. We have broken down many walls by demonstrating that innovation today is open, that a lot of times it comes from the outside, and that we must embrace collaborations with startups where we look for win-win situations.”
Significant Milestones
What have been some of your firm’s most significant milestones? Zimmermann cited:
“The world of VC and open innovation moves fast, but in terms of significant milestones, a few come to mind.”
“We have grown a lot as a team, both in terms of size, but also personally and professionally. We have tried new initiatives and investments and we have also failed many times, but we always get back up again and continue the learning process. I would highlight two specific milestones:
— Launching our acceleration program Cemex Ventures Leaplab was a great success because it meant our company was ready after 5 years to really embrace innovation and collaboration with startups at a company-wide level. It was more than just a bet on open innovation and venture capital, but rather a belief in the impact it could have on advancing the industry. After two cohorts with 10 companies, it has been a great success and the impact for the company has exceeded expectations.
— Continue our commitment to our venture capital activity after 8 years. We were one of the first CVCs (corporate venture capitals) in construction, and in contrast to other open innovation vehicles, we started with investment from the very beginning. Many people, companies, and other detractors thought that our VC activity would not last for long. We had to fight against many biases and misconceptions, but with hard work, flexibility, and market understanding, we have been able to thrive. With a clear focus to provide both financial and strategic value (more long-term strategic value than other open innovation activities), we have shown the value of venture capital to Cemex and our industry. Our Executive team at Cemex has backed us all the way, with a clear commitment for the future.”
Investment Success Stories
When asking Zimmermann about investment success stories, he highlighted:
“All the companies that have been able to move forward thanks to our small investment and contributions are a success. We watch them grow from a very early seed stage to become thriving companies. Just to name a few:
Energy Vault, one of our first ten investments, went public in 2022 to promote clean energy solutions.
StructionSite went through a transaction to become part of DroneDeploy, one of the leading startups in digitalization of the construction industry.
Carbon Clean has continued growing and achieving all the milestones that the company has set and is now one of the hottest CCUS companies worldwide.
We invested in Carbon Upcycling early on because we were impressed by the team and the possibilities of its technology. We are very much looking forward to growing alongside the company.
It’s not only about the companies, but more about the people. We have seen the entrepreneurs grow, making their vision a reality, after so much hard work and sacrifice.”
AUM And Other Metrics
When asking Zimmermann about AUM and other metrics, he revealed:
“Without disclosing private and confidential information, we can say that we have a portfolio of 23 investments, with companies in 13 different countries. These are mostly Seed and Series A investments, 44% of our focus goes to sustainability solutions, while 35% are digital solutions. We plan to continue investing in around 4-5 new companies per year.”
Industry Focus
What are some of the industries that your firm is focused on? Zimmermann emphasized:
“We are primarily focused on innovative Contech (construction technology) and Cleantech (clean technology) startups who have solutions that can help the industry become more sustainable, efficient, connected, and disruptive.”
“But we also have a global scope in order to mirror Cemex’s strategic presence in the Americas, the Caribbean, Europe, Africa, the Middle East, and Asia. We look for high-potential and typically early-stage startups.”
Differentiation From Other Firms
What differentiates Cemex from other firms? Zimmermann explained:
“While many investors offer financial support, Cemex Ventures goes beyond to also provide strategic support, offering startups the opportunity to work with Cemex as a partner or a supplier, connect to its resources and network, and receive mentoring with industry experts and financial specialists.”
“This means that as an investor and CVC, we are providing startups not just with financial and growth strategies, but also with industry experts who are extremely knowledgeable in diverse fields that can help support startups in a more technical capacity as well.”
“We’re in the midst of a very capricious cycle in venture capital funding, so the support, resources, and network we can offer is something that differentiates us, among the ever-increasing number of investors in our sector.”
Challenges Faced
What challenges have Zimmermann and the team faced while building the firm? Zimmermann acknowledged:
“In the world of open innovation, you’re always operating at the forefront, so it can be complicated to convince others to adopt unknown technologies, take risks, and disrupt the status quo. Convincing the wider company and the construction industry about the value of open innovation has been a challenge that we actively attempt to overcome through clear and open communication. We also have worked hard to find the right people within Cemex to push for innovation collaborations and the right and suitable processes for every situation.”
“Another challenge was applying market practice legal terms and conditions to venture capital. We quickly resolved this issue by forming an in-house legal team of experts on the topic.”
“Like many VCs, showing the long-term value of our venture capital activity and finding creative ways to continue supporting the companies in our portfolio that have a special urgency in raising capital can be complicated, so we try to think critically and ensure that every solution we support solves a very real pain-point within the industry.”
Future Firm Goals
What are some of your firm’s future goals? Zimmermann concluded:
“Our goals will always evolve, just like the nature of innovation. However, right now, our objective is three-fold: to make more value-added investments that can move our industry forward, establish collaborations with startups that are obsessed with solving the most pressing issues, and work together with other innovation-focused corporate partners in our sector to create synergies and propel innovation forward.”
