Construct Capital Research
Investment Thesis
Construct Capital is a thesis-driven venture capital firm dedicated to backing founders who are transforming foundational industries—manufacturing, logistics, transportation, energy, defense, and critical infrastructure—through technology. The fund believes that foundational industries have been neglected for decades with chronic underinvestment, creating a once-in-a-generation opportunity for tech-enabled disruption. The firm's core conviction is that incumbent industrial corporations have become too big to innovate, frozen in operational practices from the 1990s, and that the application of modern software, cloud infrastructure, automation, robotics, and AI to these sectors will unlock trillions of dollars in value while restoring American economic resilience and productivity.
The firm explicitly targets the intersection of technical founders and massive industrial sectors where software-defined systems can fundamentally change outcomes. Rather than focusing on traditional IT or SaaS, Construct identifies opportunities where software, AI, and automation apply directly to physical production, supply chains, and critical infrastructure.
Investment Stage Focus
Construct Capital is an early-stage focused fund, with primary concentration on Seed and Series A financing:
- Seed Stage: $2M-$5M typical investment, for teams with early product validation and initial customer traction
- Series A: $3M-$6M typical investment, for companies with demonstrated product-market fit
- Check Size Range: $2M-$6M (based on firm details)
- Ownership Target: Concentrated ownership in focused portfolio (selective partner approach, not broad diversification)
The fund deliberately limits portfolio size to provide "real-world expertise and investing meaningful time and resources" to support founders deeply. This concentrated approach reflects Rachel Holt's operating background at Uber and the partnership's commitment to hands-on board involvement.
Investment Thesis: The Opportunity
The fund's investment thesis rests on several macro trends:
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Decades of Underinvestment: U.S. manufacturing as a percentage of GDP fell from 16% in 1997 to 11% by 2021. New manufacturing firm starts declined from 12% of all startups in the 1990s to less than 5% today. Meanwhile, China grew 6x faster during the same period.
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Incumbent Stagnation: Industrial incumbents are trapped by aging assets, inefficient operations, and fear of change. The S&P 500's Industrial sector has declined from 15% (1990) to 8% (today), while IT expanded from 6% to 36%. Despite larger initial market cap, Industrials are now $13T behind IT ($3.7T vs $16.5T).
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Technology Leapfrog Opportunity: Modern technologies—cloud, edge computing, generative AI, software-defined systems, robotics—have not been systematically applied to industrial sectors. This represents the largest addressable market opportunity for venture capital: trillions of dollars of annual spend in sectors still operating analog workflows.
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Strategic Imperative: Supply chain resilience, onshoring, and domestic manufacturing capability are now strategic priorities for government and corporations. 86% of manufacturers are restructuring supply chains to find onshore/nearshore suppliers.
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Massive Market: Using public market valuations as a proxy, if Industrial sectors transition to tech-first approaches and grow to 11-12% YoY (matching broader tech), the Industrials market cap could grow from $3.7T to $55T by 2050. This would represent a $55T opportunity—larger than any single venture thesis to date.
Geographic Focus
Headquarters: Washington, DC
Investment Geography: Primarily United States with selective international opportunities in strategic sectors (e.g., Vammo in LatAm for electric mobility). The portfolio shows concentration in US-based founders, reflecting the firm's focus on American manufacturing, defense, and infrastructure resilience.
Sector Specialization
Construct Capital invests across foundational industries with particular focus areas:
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Manufacturing & Automation: Software-defined factories, industrial robotics, precision manufacturing (e.g., Hadrian - aerospace/defense manufacturing, Chef Robotics - robotic process automation)
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Supply Chain & Logistics: Logistics orchestration, supply chain visibility, freight optimization, last-mile delivery (e.g., Veho - parcel shipping, Nauta - supply chain AI, Telegraph - freight rail)
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Energy & Critical Infrastructure: Space-based solar (Aetherflux), EV infrastructure (ChargeLab), battery technology, grid modernization
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Defense & Aerospace: Focus on advanced manufacturing for space and defense (Hadrian, Amca - aerospace manufacturing)
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Industrial Horizontals: AI and software tools designed for industrial workflows (ReadyOn - workforce scheduling, BackOps - logistics OS, Nexxa - industrial AI agents)
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Climate & Sustainability: Clean energy, renewable fuels, electric mobility (Vammo)
The fund is not interested in traditional software, consumer apps, or pure play hardware. They focus specifically on tech applied to industrial processes, manufacturing, and infrastructure.
Portfolio Characteristics
- Total Investments: 67+ companies (as of January 2026)
- Portfolio Size: Concentrated with deep engagement (quality over quantity)
- Portfolio Highlights:
- Hadrian: Manufacturing automation for aerospace/defense, securing major defense contracts
- Veho: Parcel shipping logistics
- Vammo: Electric mobility/battery swapping in LatAm, $45M Series B (Oct 2025)
- Nauta: AI-powered supply chain orchestration, $7M seed (Aug 2025)
- Sphere Semi: AI-powered analog chip design
- Copia: Industrial software and automation tools
- ChargeLab: EV infrastructure connectivity
- ReadyOn: Workforce scheduling and hiring for hourly workers
- Kinetic: Automotive collision repair automation ($21M raised)
Recent Activity & Fund Status
- Fund Status: Actively deploying Fund III ($300M, closed March 2025)
- Recent Investments (2025-2026):
- January 2026: Nexxa.ai $9M seed (led by Construct)
- October 2025: Vammo $45M Series B (led by Construct)
- August 2025: Nauta $7M seed
- Multiple Series A investments throughout 2025
- In the News: Regular updates on portfolio company fundraising, defense contracts, supply chain announcements
Team
The firm is built on deep operating and investing experience. Co-founders Dayna Grayson (former NEA partner, investor in Desktop Metal IPO, Onshape exit) and Rachel Holt (9+ years at Uber as executive, led Rides business and Incubator) bring both venture experience and hands-on operational credibility. The team includes partners with operating backgrounds: Leland Chamlin (Bowery Farming), Joachim Vaturi (America's Frontier Fund), and others who have built and scaled companies. The partnership's operating experience directly translates to portfolio support—the firm positions itself as "a founder's first call" for operational problems.
Lead vs Follow Tendency
Lead Tendency: Leads - The firm is structured as an early-stage lead investor. Portfolio companies show Construct in lead position across recent investments (Vammo Series B, Nauta seed, Hadrian, Nexxa seed round).
Decision Process
Investment approach reflects partnership-based decision making with deep operational involvement. Founders can expect hands-on board support and operational problem-solving, reflecting Rachel Holt's operating background at Uber.
Founder Preferences
Construct Capital backs founders who are:
- Technical Depth: Deep understanding of industrial sectors, engineering-first mindset
- Ambition: "Not taking the easy road"—founders willing to tackle entrenched, massive problems
- Grit: Ability to navigate the complexity of physical operations, supply chains, manufacturing
- Team Orientation: Leaders who can build and scale operational teams
- Vision: Ability to see the transformation opportunity in industries others dismiss
Competitive Position
Construct Capital is one of the few dedicated venture firms focused on industrial technology at scale. Differentiation lies in thesis clarity, founder backgrounds (Uber executive + industrial-focused investor), team depth with operating experience, concentrated portfolio approach, and positioning at the convergence of defense/reshoring priorities, supply chain resilience, and AI/automation advances.