Zacua Ventures

Mauricio Tessi Weiss

The Contech sector is expected to have significant growth as investor sentiment turns increasingly positive, according to Zacua Ventures’ recently conducted 2025 ConTech Investor Survey. The survey, which gathered insights from 130 venture capital (VC) and corporate venture capital (CVC) funds with a global investment focus, highlights the sector’s resilience and evolving priorities among the diverse technologies coming to our industry.

Capital deployment: Promising outlook with decreasing concerns

One of the most interesting findings of the survey is the continuous investors’ optimism surrounding capital deployment: 90% of investors plan to either maintain or increase their investment levels in 2025 compared with the previous year, reflecting a steady recovery since the sharp decline in 2022. While 47% of respondents intend to increase their capital deployment, 43% plan to maintain current levels.

However, VCs show higher investment apetite compared with CVCs: while 51% of CVCs intend to maintain their investment pace, only 35% plan to increase it (vs. 60% of VCs), reflecting a more conservative approach from corporates.

Investor Concerns and Valuation Trends

Despite growing optimism, market uncertainty remains a concern, albeit less significant than in previous years. 37% of investors identified it as a major concern in 2025, a significant number by itself, but an optimistic fiured compared to 61% in 2023 and 40% un 2024. On the other hand, the availability of funds has become a more pressing issue, with 33% of investors expressing apprehension—a trend that has steadily increased since 2023.

Valuation trends provide an additional sign of positive sentiments: a significant 79% of investors believe valuations will either remain constant or increase, signaling a potential end to the valuation decrease observed since 2022 and, perharps, until 2024.

Technology Focus: AI and Robotics Take the Lead

The survey also reveals a shift in investment priorities toward productivity-oriented technologies. Artificial intelligence (not surprisingly) emerged as the leading area for increased investment, with 56% of respondents planning to allocate more funds to AI-driven solutions in 2025. This marks a departure from the previous dominance of sustainability-focused technologies, which saw a sharp ten-point decline to 48% compared with 2024 results. Nevertheless, it is worth mentioning that the topic remains second in the list and with a significant interst from the investment community.

Robotics placed third, showing increased traction with a nine-point increase to 34%, driven by a combination of macro factors such as skill labor shortages but also driven by advancements in flexible, multi-tasking solutions that address multiple use cases on jobsites. The rise of these technologies shows a growing emphasis on technologies with more immediate ROI and operational efficiency.

Technology differentiation, a key investment criteria

Investors, much like job site workers, are suffering with “app fatigue”, a saturation of overlapping technology solutions. This in leading to focus on differentiation as a critical investment criteria for investors. The survey highlights  “Team,” “Traction,” and “Differentiation” as the top factors influencing investment decisions.

Interestingly, VCs and CVCs differ in their specific priorities. While VCs prioritize team quality, differentiation, and go-to-market strategies, CVCs place greater emphasis on product readiness, burn rate, and strategic fit.

Regional trends & opportunities

However, not all responses behave the same way: when segmented by investors’ geographical scope we spot different trens: North America, which continues to lead in ConTech funding, with 60% of total investment in 2024 remains bullish on AI, followed by robotics and new materials. In contrast, Europe maintains a strong focus on sustainability, albeit with a notable decline from previous years.

Latin America stands out for its emphasis on supply chain solutions and marketplaces, driven by logistical challenges and a largely untapped market for digitalization.

In Asia, robotics, previously a standout focus, has aligned more closely with global trends, while sustainability interest has waned. Finally, Middle East, experiencing the highest construction growth, prioritized modular construction as a key area, with 70% of investors seeking greater exposure in this segment.

Conclusion: A bright future for contech deployment

With increased optimisim in investors and better outlook for valuation behavior, the Contech landscape in 2025 presents exciting opportunities for startups and entrepreneurs. The combination of tech advancements, financial optimism, and shifting market dynamics signals a promising future for the sector, hopefully alligned with an increased willigness to deploy technology from construction companies. For industry stakeholders, the key takeaway is clear: innovation, strategic differentiation, and a keen understanding of regional dynamics will be essential for thriving in this next chapter of Contech growth.