Practical Nerds

Patric Hellermann

The latest in venture and technology in the real world, from construction-tech to design-tech. Two early-stage investors shooting the breeze about startups, founders and venture funding. We talk about design, construction, renovation, blue-collar, robotics and supply chains. Hosted by Patric Hellermann and Shub Bhattacharya, General Partners at Foundamental (www.foundamental.com).

  1. 089⎟Bet-Taking Factories and Commercial AI Engineers: The New Shape of Engineering?

    1 DAY AGO

    089⎟Bet-Taking Factories and Commercial AI Engineers: The New Shape of Engineering?

    ### About This Episode Patric and Shub explore how AEC startups and tech companies should reimagine their engineering organizations to fully harness AI. They unpack a counterintuitive org design that splits "run the business" from "transform the business," introduce a new persona called the commercial AI engineer, and discuss what the head of engineering role looks like in an AI-native world. ### In This Episode Why every startup today must operate as an AI-native firm, much like the shift to internet-enabled companies a generation ago, and what that means for AEC and supply chain founders building in legacy industries. The case for separating your engineering organization into a "run the business" function and a dedicated "bet-taking factory," with examples from Uber, Revolut, Rocket Internet, and Lockheed Martin's Skunk Works. The rise of the commercial AI engineer: a STEM or CS-trained operator who spent most of their career in growth, RevOps, launcher, investing, or founder roles, and who can now ship product at insane velocity by collapsing the engineering-product-commercial interfaces. Why traditional engineers with 5 to 15 years of experience often struggle in the AI transition, while engineers with 20-plus years and fresh graduates tend to deliver the highest ROI in AEC tech and beyond. How to hire the new head of engineering by starting with interpersonal skills and resource-constrained management cases, then testing alignment with commercial AI engineering principles before going deep on technical capability. ### Timestamps (00:00) - Introduction (01:38) - Framing the AI-native organization (04:15) - Run the business vs. transform the business (09:52) - Why so few startups separate bet-taking factories (11:54) - Introducing the commercial AI engineer persona (17:38) - How this profile collapses engineering, product, and commercial silos (19:17) - The risks of transitioning a traditional engineering team (22:15) - Engineering as a tooling, interface, and standards function (24:10) - Which engineering profiles thrive and which struggle in the AI transition (28:30) - Why interpersonal skills now outrank people management for engineering leaders (30:05) - Hiring process for the new head of engineering (33:06) - Conclusion and wrap-up ### Resources or Companies Mentioned Uber: https://www.uber.com/ Revolut: https://www.revolut.com/ Rocket Internet: https://www.rocket-internet.com/ Honda Research: https://global.honda/en/RandD/ Airbnb: https://www.airbnb.com/ Salesforce: https://www.salesforce.com/ Netflix: https://www.netflix.com/ Palantir: https://www.palantir.com/ ### Connect With Us Practical Nerds Website:[⁠⁠ https://practicalnerds.com/⁠⁠](https://practicalnerds.com/) Subscribe to the Newsletter: [⁠⁠https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/⁠⁠](https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/) Foundamental: [⁠⁠https://www.foundamental.com/⁠⁠](https://www.foundamental.com/) Patric Hellermann: [⁠⁠https://www.linkedin.com/in/aecvc/⁠⁠](https://www.linkedin.com/in/aecvc/) Shub Bhattacharya: [⁠⁠https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/⁠⁠](https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/) Youtube: [⁠⁠https://www.youtube.com/@foundamentalvc⁠⁠⁠](https://www.youtube.com/@foundamentalvc%E2%81%A0) #AInativeStartups #AECtech #EngineeringLeadership

    33 min
  2. 088 | A New Venture Asset Class Is In The Making - Hidden In Plain Sight

    17 APR

    088 | A New Venture Asset Class Is In The Making - Hidden In Plain Sight

    ## About This Episode The venture capital landscape is undergoing a structural shift that goes far beyond a typical market cycle and it has direct implications for founders and investors operating in the AEC and construction technology space. In this episode, Patric and Shub unpack the bifurcation of the VC market, where capital is increasingly concentrating at the extremes, leaving a growing gap in the middle. They explore how this realignment could give rise to an entirely new asset class - one that may be uniquely suited to the kinds of capital-efficient, project-driven businesses common in AEC tech. ## In This Episode The VC market is bifurcating, with capital concentrating into mega-funds chasing trillion-dollar outcomes and hyper-specialized early-stage funds, while mid-sized generalist funds face an existential squeeze - a dynamic especially relevant for AEC tech investors navigating a fragmented industry. The middle of the venture market is being hollowed out, forcing fund managers in the $200M–$700M range to either chase hyper-asymmetric outcomes they're structurally ill-equipped to capture or back second-place companies in winner-take-all races. A pattern familiar in construction tech, where market consolidation is accelerating. A new asset class is emerging around the $150M–$500M exit range, orphaned by funds swinging for billion-dollar outcomes, creating a real opportunity for founders building capital-efficient, high-value businesses in sectors like AEC, where project-based economics naturally favor this profile. Founders targeting this gap may be best served by investors operating closer to a private equity model - leading follow-on rounds, maintaining high ownership, and aligning with the realistic exit liquidity available in construction and engineering markets, where strategic acquirers are plentiful. The structural dynamics of AEC - project-driven revenue, slower software adoption curves, and strong M&A appetite from large contractors and industrials - may make it one of the most natural homes for this emerging sub-venture asset class. ## Timestamps (00:00) - Introduction (00:32) - The bifurcation of the VC market: setting the scene (03:02) - Is this a cyclical shift or a structural change (05:40) - What founders and investors are concluding — and what they're missing (11:36) - The emerging gap: the $150M–$500M exit opportunity (18:58) - How to capitalize on the gap: PE-style venture and a new asset class (21:01) - Risks of capital flooding the sub-venture strategy (22:44) - Is venture even the right product, or is it debt? (25:03) - Conclusion and wrap-up ## Resources or Companies Mentioned Andreessen Horowitz (a16z): [https://a16z.com](https://a16z.com/) Anthropic: [https://www.anthropic.com](https://www.anthropic.com/) ## Connect With Us Practical Nerds Website:[⁠⁠ https://practicalnerds.com/⁠⁠](https://practicalnerds.com/) Subscribe to the Newsletter: [⁠⁠https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/⁠⁠](https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/) Foundamental: [⁠⁠https://www.foundamental.com/⁠⁠](https://www.foundamental.com/) Patric Hellermann: [⁠⁠https://www.linkedin.com/in/aecvc/⁠⁠](https://www.linkedin.com/in/aecvc/) Shub Bhattacharya: [⁠⁠https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/⁠⁠](https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/) Youtube: [⁠⁠https://www.youtube.com/@foundamentalvc⁠⁠⁠](https://www.youtube.com/@foundamentalvc%E2%81%A0) #VentureCapital #AECtech #ConstructionTech

    26 min

  3. 18 MAR

    087 | The Art of Self-Selection | How AEC Startups Can Find Their Perfect Fit

    About This Episode In this episode, Patric and Shub explore the concept of self-selection as one of the most powerful and underutilized tools in business and beyond. Drawing inspiration from an unlikely source - their shared love of Seinfeld - the conversation unpacks how startups, founders, investors, and recruiters in the AEC and tech world can harness self-selection to find the right fit efficiently, rather than chasing volume at the expense of quality. In This Episode What self-selection actually means and why the popular interpretation gets it wrong - from a biological lens comparing mRNA binding mechanisms to how AEC startups and founders can design themselves to attract exactly the right counterparts. How radical honesty and vulnerability in recruiting leads to stronger talent density - and why environments or cultural norms that discourage plain speaking actively sabotage the self-selection process, leaving both parties to make costly assumptions. Why founders raising capital should aim for five to eight deeply aligned investors rather than casting the widest possible net - and how obscuring weaknesses during fundraising only delays the inevitable and damages long-term investor relationships. How startup websites and customer messaging in construction and real estate tech often speak to investors rather than to customers - and why Tesla's original Roadster remains the gold standard for deliberate, fearless customer self-selection. The psychology behind why self-selection is so rare: fear of loss, the need for validation through every successful close, and the difference between operating from a mindset of abundance versus scarcity. Timestamps (00:00) Introduction and the Seinfeld connection (02:10) Defining self-selection - filtration vs. biological resonance (06:23) Designing yourself to attract the right counterpart (09:44) Self-selection in recruiting and talent density (13:45) Why hiding imperfections always backfires (16:08) The psychology of fear of loss and why honesty is rare (23:47) Self-selection in fundraising - how many investors should founders meet? (29:26) The investor's perspective - coverage rates and being called first (31:51) Customer self-selection and the danger of investor-facing startup messaging (33:27) The Tesla Roadster as a masterclass in customer self-selection (35:13) Dating apps, swipe behavior, and the limits of maximizing optionality (38:43) Closing reflections on self-selection as a universal principle (39:42) Wrap-up and weekend sign-off Connect With Us Tesla Roadster (original): https://www.tesla.com Practical Nerds Website: ⁠⁠https://practicalnerds.com/⁠⁠ Subscribe to the Newsletter: ⁠⁠https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/⁠⁠ Foundamental: ⁠⁠https://www.foundamental.com/⁠⁠ Patric Hellermann: ⁠⁠https://www.linkedin.com/in/aecvc/⁠⁠ Shub Bhattacharya: ⁠⁠https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/⁠⁠ Youtube: ⁠⁠https://www.youtube.com/@foundamentalvc⁠⁠⁠

    40 min
  4. 086 | The AEC software market is going through its "Revit Moment" - for the second time - here's what we invest in

    4 MAR

    086 | The AEC software market is going through its "Revit Moment" - for the second time - here's what we invest in

    About This EpisodePatric Hellermann and Shub Bhattacharya dive into the accelerating momentum in the 3D CAD design and data infrastructure space within AEC, exploring why enterprise adoption has dramatically shifted over the past 12 months. They unpack the strategic significance of AECOM's acquisition of Consigli and what it signals about the future of the AEC technology landscape. The conversation culminates in a compelling thesis on what it will take to build a $100 billion - or even trillion-dollar - business in CAD and design infrastructure for the project economy.In This EpisodeCommercial momentum in the AEC 3D design and data infrastructure space has reached a new inflection point, with enterprise ACV deals in the $200K–$500K range now closing in days rather than months, driven by the convergence of product-ready startups and a customer base that is finally adoption-ready.AECOM's acquisition of Consigli for approximately $390 million is examined not as a revenue-based deal, but as a product and team acquisition rooted in the belief that next-generation CAD infrastructure represents both an existential threat and a transformational opportunity for traditional incumbents.Pricing model changes and expiring teaser rates from dominant CAD incumbents - predicted back in 2023 - are now materializing in 2025–2026, triggering a broad IT stack reevaluation and reallocation across architecture and engineering firms, independent of AI trends.The thesis for building a $100 billion to $1 trillion business in AEC design centers on combining two core assets: a generalist authoring tool (the "heart") and a flexible, connectable data infrastructure layer (the "brain") - together forming the system of record, or what Patric calls the "bathtub," for geometric data across the full project lifecycle.Timestamps(00:00) Introduction and episode framing(01:28) Recap of the 3D design and data infrastructure theme at Practical Nerds(02:19) Commercial momentum: what's changed in enterprise ACV deals over the last 12 months(09:38) The AECOM–Consigli acquisition: deal value, strategic rationale, and what the numbers actually say(16:23) The 2023 prediction: IT stack reevaluation and incumbent pricing model shifts coming true(21:29) The acquisition as accelerant - or symptom - of a deeper industry tsunami(24:30) The brain and the heart: building a $100B–$1T CAD business through data infrastructure and authoring tools(28:51) Consolidation dynamics, founder advice, and strategic value beyond revenue(29:17) Wrap-up and closing thoughtsResources or Companies Mentioned Snaptrude: https://www.snaptrude.com Speckle: https://speckle.systems Rayon: https://www.rayon.design CalcTree: https://www.calctree.com Enscape: https://enscape3d.com Onshape: https://www.onshape.com AECOM: https://www.aecom.com Revit: https://www.autodesk.com/products/revit Connect With Us Practical Nerds Website:⁠⁠ https://practicalnerds.com/⁠⁠ Subscribe to the Newsletter: ⁠⁠https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/⁠⁠ Foundamental: ⁠⁠https://www.foundamental.com/⁠⁠ Patric Hellermann: ⁠⁠https://www.linkedin.com/in/aecvc/⁠⁠ Shub Bhattacharya: ⁠⁠https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/⁠⁠ Youtube: ⁠⁠https://www.youtube.com/@foundamentalvc⁠⁠⁠ The Daily Blueprint: ⁠⁠https://tinyurl.com/the-daily-blueprint⁠⁠⁠

    30 min
  5. 085 | Momentum vs. Substance Investing | When A Startup Only Works In Boom Times

    19 FEB

    085 | Momentum vs. Substance Investing | When A Startup Only Works In Boom Times

    About This Episode In this episode, Patric and Shub explore the critical difference between substance investing and momentum investing in the venture capital world. Using five cautionary examples spanning from 2010 to the COVID era, they examine why businesses built on hype cycles rather than fundamentals inevitably fail when boom times end. In This Episode The distinction between substance investing and momentum investing, and why timing the market matters less than building sustainable business models A retrospective analysis of failed boom cycle companies including Groupon, fab.com, Homejoy, WeWork, and Hopin, revealing the common patterns that led to their downfall Why great founders alone cannot save a fundamentally flawed business model, challenging the venture industry's obsession with team over substance The dangers of category crowding when VCs pile into trending narratives, creating overcrowded markets with too much customer choice How to identify current boom cycle investments by looking for warning signs like negative gross margins masked by impressive growth metrics Timestamps (00:00) - Introduction (01:26) - Defining substance versus momentum investing using Waymo's recent funding round (03:47) - Groupon: The 2010 daily deals boom and its spectacular collapse (09:47) - fab.com: The 2014 flash sales phenomenon that sold for pennies on the dollar (16:29) - Homejoy: The "Uber for X" era and why hyperlocal execution matters (20:48) - WeWork: The gig economy poster child that went bankrupt after raising $13 billion (25:20) - COVID-era virtual events: Hopin and the pandemic boom that evaporated (29:54) - Identifying today's boom cycle investments Resources or Companies Mentioned Waymo: https://waymo.com/ Groupon: https://www.groupon.com/ WeWork: https://www.wework.com/ WeCrashed (Apple TV Series): https://tv.apple.com/us/show/wecrashed/ Hopin: https://hopin.com/ Zoom: https://zoom.us/ Connect With Us Practical Nerds Website:⁠⁠ https://practicalnerds.com/⁠⁠ Subscribe to the Newsletter: ⁠⁠https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/⁠⁠ Foundamental: ⁠⁠https://www.foundamental.com/⁠⁠ Patric Hellermann: ⁠⁠https://www.linkedin.com/in/aecvc/⁠⁠ Shub Bhattacharya: ⁠⁠https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/⁠⁠ Youtube: ⁠⁠https://www.youtube.com/@foundamentalvc⁠⁠⁠ #VentureCapital #StartupInvesting #BoomAndBust

    28 min
  6. 084⎟EquipmentShare Files For IPO | What The S-1 Reveals About Construction Tech's Next Giant

    26 JAN

    084⎟EquipmentShare Files For IPO | What The S-1 Reveals About Construction Tech's Next Giant

    About This Episode In this episode, Patric and Shub dive deep into EquipmentShare's S-1 filing as the company prepares to go public. They analyze the financials, business model, and growth trajectory of one of construction tech's most significant players, offering insights into what this IPO means for the broader AEC technology ecosystem. In This Episode EquipmentShare's journey from a equipment rental marketplace to a multi-billion dollar construction technology platform Analysis of the company's revenue streams, including equipment rental, equipment sales, parts and services, and the T3 telematics platform The innovative OWN program that allows EquipmentShare to securitize equipment and lease commitments into asset-backed securities Examination of profitability challenges, including rising depreciation and interest expenses despite growing gross margins The strategic importance of the one-stop shop model for future growth and potential 10x valuation expansion Timestamps (00:00) - Introduction and Happy New Year (01:28) - Patric's bold prediction: Three billion-dollar exits in the project economy this year (02:34) - Overview of EquipmentShare's S-1 filing and business segments (05:00) - What EquipmentShare does: From marketplace origins to multi-service platform (07:01) - The one-stop shop strategy and TAM expansion (09:07) - Revenue analysis: $3.8 billion in 2024 with 45% CAGR (15:26) - Profitability deep dive: Gross margins vs. rising operating expenses (19:56) - Leverage and liquidity concerns: Debt-to-EBITDA ratios of 4x to 10x (24:19) - The OWN program explained: Asset-backed securitization innovation (30:06) - IPO valuation: $6 billion target and what it means for investors (32:59) - Governance concerns: 20-to-1 voting shares for founders (33:28) - Three key observations: Mature location margins, T3 ROI, and Q4 revenue anomaly (41:17) - Future outlook: Why diversification beyond equipment is critical (42:22) - Conclusion and wrap-up Resources or Companies Mentioned EquipmentShare: ⁠https://www.equipmentshare.com/⁠ Procore: ⁠https://www.procore.com/⁠ Bricks, Bucks & Bytes Podcast: ⁠https://bricks-bytes.com/podcasts/bricks-bucks-bytes/⁠ Connect With Us Practical Nerds Website:⁠⁠⁠ ⁠⁠https://practicalnerds.com/⁠⁠⁠ Subscribe to the Newsletter: ⁠⁠⁠https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/⁠⁠⁠ Foundamental: ⁠⁠⁠https://www.foundamental.com/⁠⁠⁠ Patric Hellermann: ⁠⁠⁠https://www.linkedin.com/in/aecvc/⁠⁠⁠ Shub Bhattacharya: ⁠⁠⁠https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/⁠⁠⁠ Youtube: ⁠⁠⁠https://www.youtube.com/@foundamentalvc⁠⁠⁠⁠ The Daily Blueprint: ⁠⁠⁠https://tinyurl.com/the-daily-blueprint⁠⁠⁠⁠ #ConstructionTech #IPO #EquipmentShare

    43 min
  7. 083 | VC Meets Movie | The Netflix Shows In VC You Find Entertaining - But Don’t Want To Star In

    18/12/2025

    083 | VC Meets Movie | The Netflix Shows In VC You Find Entertaining - But Don’t Want To Star In

    About This Episode In this candid episode, Patric and Shub explore the challenging side of founder-VC relationships by sharing their most difficult experiences with concerning founder behaviors. They examine patterns of deceptive, manipulative, and hostile conduct they've encountered in the AEC startup ecosystem and discuss whether extreme personality traits are necessary for building outlier companies. In This Episode Identifying concerning behavior patterns and their manifestation in startup foundersExperiences with founders who fabricated term sheets and manipulated VC relationships to create false bidding warsExamples of hostile founder reactions when facing rejection or difficult conversationsThe most challenging case studies including founders with surprisingly few professional references across long careersWhether extreme traits are required for building successful AEC and construction technology companies Timestamps (00:33) - Introduction and Seinfeld reference setup (03:11) - Defining the psychology aspect of VC work and founder evaluation (06:18) - First category: Deceptive and manipulative behavior examples (09:08) - Shub's story of a founder who falsely claimed term sheet offers (17:47) - Patric's example of founders fabricating existing term sheets (24:38) - Additional example of founders misrepresenting VC conversations (31:11) - Second category: Hostility and aggressive reactions (34:19) - Stories of founders making threats after receiving pass decisions (41:32) - Third category: Most extreme challenging cases (51:48) - The founder with zero professional references across four companies (01:00:35) - Final discussion: Do you need extreme personalities to build outlier companies? (01:07:30) - Conclusion and wrap-up Connect With Us Practical Nerds Website:⁠⁠ https://practicalnerds.com/⁠⁠ Subscribe to the Newsletter: ⁠⁠https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/⁠⁠ Foundamental: ⁠⁠https://www.foundamental.com/⁠⁠ Patric Hellermann: ⁠⁠https://www.linkedin.com/in/aecvc/⁠⁠ Shub Bhattacharya: ⁠⁠https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/⁠⁠ Youtube: ⁠⁠https://www.youtube.com/@foundamentalvc⁠⁠⁠ The Daily Blueprint: ⁠⁠https://tinyurl.com/the-daily-blueprint⁠⁠⁠ #FounderBehavior #VentureCapital #StartupPsychology

    1hr 8min
  8. 082 | The Pre-Raise Paradox | Why Founders Delay The Work That Matters Most

    14/11/2025

    082 | The Pre-Raise Paradox | Why Founders Delay The Work That Matters Most

    About This Episode In this episode of Practical Nerds, Patric and Shub share their candid observations from reviewing thousands of startup pitches at Foundamental. They discuss the most common gaps they see in founder presentations and what they wish more founders understood about the fundraising process, offering practical insights for construction tech and AEC startups looking to improve their pitch and execution strategy. In This Episode The critical importance of having extremely specific tactical plans before fundraising, including detailed execution strategies for the next 6 months rather than vague ambitions Why founders should actively seek out and acknowledge bottlenecks in their business, from personal weaknesses to competitive challenges, rather than avoiding uncomfortable truths The power of maintaining direct access to primary information as a founder, including customer conversations and sales calls, rather than delegating information collection Understanding fundraising as capital allocation and recognizing that raising money means trading company ownership for resources that must generate returns The difference between research and experimentation, and why founders need strong hypotheses before running experiments rather than using fundraising to "figure things out" Timestamps (00:00) Introduction and Thanksgiving in Japan banter (02:00) Overview: What founders get wrong about pitching and fundraising (03:56) The lack of tactical specificity in founder plans(09:01) Why founders delay tactical planning and the gym workout analogy (14:34) The importance of identifying and acknowledging bottlenecks (20:48) Founders who delegate information collection versus staying hands-on (24:37) Examples from successful CEOs who maintain founder-led product and sales (26:56) Founders as capital allocators and the cost of equity (32:40) Wrap-up Resources or Companies Mentioned Faktus: https://faktus.eu/ Nvidia: https://www.nvidia.com/en-us/ Palantir: https://www.palantir.com/ Connect With Us Practical Nerds Website: https://practicalnerds.com/ Subscribe to the Newsletter: https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/ Foundamental: https://www.foundamental.com/ Patric Hellermann: https://www.linkedin.com/in/aecvc/ Shub Bhattacharya: https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/ Youtube: https://www.youtube.com/@foundamentalvc The Daily Blueprint: https://tinyurl.com/the-daily-blueprint #StartupFundraising #FounderMindset #VentureCapital

    33 min
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Ratings & Reviews

5
out of 5
3 Ratings

About

The latest in venture and technology in the real world, from construction-tech to design-tech. Two early-stage investors shooting the breeze about startups, founders and venture funding. We talk about design, construction, renovation, blue-collar, robotics and supply chains. Hosted by Patric Hellermann and Shub Bhattacharya, General Partners at Foundamental (www.foundamental.com).

Information

  • Creator
    Patric Hellermann
  • Years Active
    2023 - 2026
  • Episodes
    89
  • Rating
    Explicit
  • Copyright
    © Patric Hellermann
  • Show Website
    Practical Nerds

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