Cemex Ventures: Techniques to Tackle Construction Challenges

Introduce yourself, your role and what Cemex Ventures does

I am Gonzalo Galindo, Head of Cemex Ventures, which is the corporate venture capital (CVC) and open innovation unit of Cemex, the global building materials company. 

My duties include overseeing our global activities investing in, accelerating and partnering with the most innovative, sustainable and promising companies to drive the construction industry revolution. 

What is Cemex doing around R&D?

R&D is a key component of our commitment to sustainability. 

We work very closely with our Global R&D team in Switzerland, which delivers innovative and transformational solutions. 

They are Cemex’s eyes outside of the company, and we work together to identify valuable solutions, evaluate technologies and develop them within our plants. 

How challenging is regulation and financing?

The greatest obstacle with regulation is it differs according to market and geography, which can make it more difficult at times to scale solutions. 

However, we are seeing stricter regulation across the board, which is propelling the adoption of new construction technologies in bigger companies as well as the proliferation of more startup solutions. 

With respect to public investment, there is a great opportunity in securing funding for sustainability projects, such as carbon capture, its use and storage, and alternative energy sources. 

Although we have worked hard to receive public investment from government institutions such as the Department of Energy and European Union, it can be tricky to secure these type of funds, as there is currently a limited amount of investment to be awarded. 

Coupled with this is the fact that major players from the heavy industries are aggressively competing for said public funding. 

Our hope is that as we progress to 2030 and then 2050, there will be more public investment available for companies with sustainability commitments. 

What makes Cemex Ventures unique?

We are one of the first CVCs in the industry, which has provided us with a comprehensive view of the innovation landscape since 2017. Additionally, we go beyond financial investments and returns. We run pilots with startups in our acceleration program and Front End Engineering Design studies with our portfolio companies at Cemex cement plants. Through this, we surpass traditional venture capital firms to find mutually beneficial success for both startups and Cemex. 

This is one of the benefits of being both a CVC and an open innovation unit.

How is technology improving the construction industry? 

New construction technologies, and clean technologies, are helping improve the construction industry by solving some long established pain points. 

This includes making supply chains more agile, digitalising different processes to increase productivity and efficiency, finding new methods to build and, perhaps most importantly, making construction more sustainable.

For example, technologies that capture carbon emissions or make use of alternative energy sources are at the forefront of innovation within our industry. 

The list of technologies that are improving construction goes on and on and changes from year to year. 

Why is collaboration with startups important to building a sustainable future?

Corporations and startups are different from one another. However, from an open innovation perspective, the success that can result from cooperation between the two is greater than by each alone. 

Startups in today’s business ecosystem tend to be less risk averse and at the forefront of innovation with their new business models and technologies.

Corporates are more risk averse and structured, but have greater brand recognition and resources. In the areas where corporates fall short, startups usually excel, and vice versa. 

For this reason, the collaboration between innovation enterprises and startups to build a more sustainable future is the key to achieving a more sustainable and digital industry, and thus a better future for all. 

The construction industry is in a state of transformation. The companies innovating today are building the gold standard of the future. 

It is the work of the most promising construction technology startups and the most innovative construction giants that is ensuring a sustainable future is a possibility today.

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