FOBECON, a Korea-based AI construction startup, has secured pre-Series A funding from Xplor Investment and Magellan Technology Investment, signaling a bold step forward in the digital transformation of the construction industry. Founded in January 2024, FOBECON is a ConTech company that’s leveraging artificial intelligence to revolutionize construction cost estimation. Its flagship product, AutoQTO, uses AI to read unstructured data—drawings, quantities, specs—and automatically calculate project costs, turning a traditionally manual, time-intensive process into something automated and standardized.
Magellan Technology Investment was particularly impressed by FOBECON’s ability to handle messy, unstructured data and its proven track record of implementing the technology in real projects. The firm sees the startup as a company that could fundamentally reshape how construction works and wants to be a long-term partner in that journey. What caught both investors’ attention was FOBECON’s hands-on experience—proof-of-concept projects with major builders and real commercialization—combined with AI technology specifically built for construction data.
The round included money from construction company CVCs, which should open doors to partnerships with major players like GS Engineering & Construction and Hoban Construction. The funding will go toward building out AutoQTO 3.0, the next version of the platform. FOBECON plans to improve how accurately it reads drawings, add features that let teams collaborate on big projects, and introduce cost prediction and risk analysis based on past estimates. The goal is to become the standard platform for Korea’s major and mid-sized construction firms.
A company representative said bringing construction CVCs and tech investors together in one round was particularly meaningful. “It shows that people believe in both the technology and the market opportunity,” the representative said. “We’re going to use AutoQTO to help Korean construction companies go digital faster, and eventually build a platform that works globally. Long-term, we’re not just about estimates—we want to be the data hub for the entire construction lifecycle, from building to operations.”
This investment is not just about streamlining cost estimation; it’s about reimagining the future of construction. As the industry grapples with labor shortages, rising material costs, and the urgent need for sustainability, digital transformation is no longer optional—it’s essential. FOBECON’s technology promises to bring efficiency, accuracy, and collaboration to the heart of construction projects, potentially setting a new standard for the industry.
The construction sector is ripe for disruption, and startups like FOBECON are at the forefront of this change. By automating and standardizing processes that have long been manual and error-prone, they are paving the way for a more efficient, data-driven future. The involvement of construction company CVCs in this funding round underscores the industry’s recognition of the need for digital tools that can enhance productivity and profitability.
As FOBECON continues to develop AutoQTO 3.0, the potential impact on the construction industry is significant. The ability to predict costs and analyze risks based on past estimates could revolutionize project planning, reducing delays and cost overruns. Moreover, the company’s vision of becoming the data hub for the entire construction lifecycle—from building to operations—could transform how projects are managed and maintained.
The construction industry is on the cusp of a digital revolution, and FOBECON’s success could inspire similar innovations worldwide. As the sector continues to evolve, the integration of AI and other advanced technologies will be crucial in meeting the demands of a rapidly changing world. FOBECON’s journey is just beginning, but its potential to reshape the construction industry is undeniable.