The construction industry is yesterday’s news. DEPO invested in its digitization.
When a building is being designed, a massive pile of data is an inevitable outcome. Only the gathering and analysis of this data takes an extensive amount of time. Czech startup Digital Transformation Systems (DTS) aims to make this tedious process easier for their customers working in industries such as construction and engineering. The way how DTS accomplishes this is by shifting to the building’s digital information system based on the BIM (Building Information Modeling), which in a short amount of time is going to be mandatory to use in the European Union. So far, BIM managed to get a hold of 14 million crowns from the investment funds DEPO Ventures, StartGuide, Lighthouse Ventures, and Czech Founders Fund. This funding is going to be used primarily for foreign expansion.
“The construction industry is going through the process of digitization, which is being pushed forward by the demands of public institutions. The BIM standard is going to be mandatory in the whole EU, for example in Czechia from the year 2023. Upholding BIM is going to create a huge amount of data. However, designers are not data analysts, which is why they will need tools, and those are going to help them work with non-graphically displayed data effectively. And this is a great opportunity for Digital Transformation Systems.” (Petr Šíma, partner at DEPO Ventures)
In Czechia, the state is bound to utilize BIM next year. This will be applied for over-the-limit orders exceeding 150 million crowns.
Numerous construction companies are still using the manual approach for sharing, management, and data handling. They usually use either excel spreadsheets or simple software of their own creation. DTS startup is going to help companies with automatization, improved economic and technical efficiency, and better overall security of data systems. DTS provides the whole package, meaning design, solution, and integration of several different kinds of software platforms, which designers and developers use within their work. This software is being used already in the planning phase, followed by the design and consultation phase, all the way through to the actual process of construction, the function of the finished building, and maintenance.
The company has been making a profit since the very beginning
“We wish to build the largest technological competitor, whose software helps the digitization process of the construction industry. We would like to become the first choice for the mandatory implementation of the BIM process as a result of the digitization of the industry, and our aim is to accomplish this for the entire sector of the European Union, within several different types of projects. Right now, we are preparing for foreign expansion, due to the fact that among our customers, you can find the largest construction companies in Czechia. Our product is highly dynamic, and furthermore, is not dependent on any form of local or foreign legislature.” (Milan Moravec, founder, and CEO of Digital Transformation Systems)
Last year, DTS company sales reached 500 thousand euros. Currently, the company has 15 clients, including the capital city Prague, waterwork companies, infrastructure etc. The market potential, however, is much larger. It is estimated, that only in Czechia, the number of potential companies within the scope of DTS business reach is as large as five thousand. This includes the whole ‘ecosystem’, meaning companies from the design sector, construction as well as semi-state investors.
Founder with experience
Milan Moravec, the founder of DTS is no rookie in the construction industry. “In the past, I managed the largest waterworks consultation company in Czechia, with 200 employees and hundreds of millions in turnover. My responsibility was in the innovation and implementation of this innovation. At the same time, I had the possibility to see the direction and process of construction digitization in Europe.” He is fully aware though, that a startup is a slightly different endeavor, therefore he looked for a key investor, who would help him more than with mere funding. “Building an international dynamic startup has a very peculiar process. The highly skilled investors at DEPO Ventures acquired a large portfolio of startups and they are helping me pinpoint my priorities. I also believe that they would advise me to recognize any potential mistakes and help me to prevent them.”
DEPO Ventures managed to invest in 25 technological companies making a small exception. “Even though we prefer technologically proficient founders, we still believe, that in industries where it is hard to sell your services and selling depends on very good knowledge, Millan Moravec and his expertise will be essential for further growth of the company.” (Petr Šíma)
The current investment process represents the first external investment for DTS. The company has been making a profit since the very beginning. The monetary help from the investors is supposed to help the company to grow and expand. Angel investor DEPO Ventures is going to help with headhunting new clients, verify product market suitability and prepare the company for foreign expansion.