A consortium led by Idekapital, with Aidiom, Investinor, Skagerak Maturo and Oxer Kapital as co-investors, invests $3 million in the Norwegian construction technology company Fonn. Fonn have set out to reinvent project management for construction globally.
- We are humble and proud to have come to agreement with such a star team of investors in the midst of an international crisis. It has been trying times, but we have stayed focused and worked hard through spring and summer, says Jan Tore Grindheim, founder and CEO of Fonn
Fonn provides a uniquely user-friendly collaboration and management platform for construction companies of all sizes and has already made a successful entry to the US and UK construction industry. The company is young, and only three years after launching their collaboration platform, the start-up has achieved a significant market share in Norway. A year ago, the company entered the United States and the United Kingdom and have already signed several agreements in both these markets.
- We have been following the construction industry for a while and have met with several software companies aiming to improve project management in the space. We've worked closely with the management team for months, we have tested the solution, and talked with many industry players. We were amazed by the satisfaction level of their users! Fonn has made wise choices for their product by focusing on usability, and our impression is that Fonn has the best solution available. We were instantly impressed by the professional and go-getter team and the growth they have proven over the past few years, Says Frida Rustøen, Investment Manager at Idekapital.
- We invest in Fonn because the digitalization of the trillion USD housing sector represents a huge market opportunity. The value added from the construction sector contributes to 4% of the US GDP in 2019. Applying software to improve productivity, Fonn is positioned to become a leading platform for the residential construction industry, says Jon Øyvind Eriksen, CEO of Aidiom, an early-stage tech investor focused on applied artificial intelligence (AI).
Approximately 80% of the company's new sales today come from the US and UK.
- With the new capital, we intend to triple our recurring revenue over the next 12-18 months. We will continue our international growth, and at the same time strengthen our position in the Nordics, says Chief Sales and Marketing Officer at Fonn, Daniel Skotheim
- Fonn is well placed to be a success in both the US and the UK for a number of reasons. The product is well designed, easy to use and accessible to a wide range of companies - with an excellent feature set for the SME market, a market that has often been overlooked.
- Immediately finding a product-market-fit, we have already scaled our international presence in the US and the UK. Focus now is to further strengthen these teams with new resources, with specialized roles for to ensure continued growth and customer success, Skotheim adds.
Fonn is a collaboration tool for construction projects. Increasing productivity and quality, by gathering all participants, documentation and communication on one common platform.
- Our success is based on Norwegian principals of quality, and an extreme focus on user-friendliness in an industry that is lagging in digitalization. Our team is strong with competences that compliments each other well, with extensive experience across several industries, adds Jan Tore Grindheim.
The world around construction is progressing to digital platforms at an unprecedented rate. Unfortunately, construction has been stubbornly lagging for decades. This is one of the greatest challenges Fonn will face growing. For the US alone, it is estimated that somewhere near 85% of contractors are not using any project management software whatsoever (National Association of Home Builders, 2019).
In the UK, the government's stimulus package considering Covid19 will kickstart construction, and firms are looking to be more efficient, now more than ever. The huge uptake of collaboration tools like Zoom, Teams and other digital tools, has shown how we can connect remote workers and disjointed teams more easily.
While challenges around the industries attitude to change management remain, Fonn has set itself apart by suiting current needs and at the same time improve the product offering based on the desires of current customers, rather than a closed innovation process and then telling customers what they need.
As the industry strives for manageable change, Fonn will be there to make adoption simple and progress inevitable. Fonn have a compelling offering, which will help Fonn offer a superior proposition. Unlimited users, files and projects. Native offline apps, and affordable transparent price points.