San Francisco-based Zacua Ventures has closed its second fund at $135m, more than doubling the $56m it raised for its first vehicle in 2024.

Zacua invests in early-stage start-ups developing technology for what it calls the physical industries. While construction remains a core focus, the new fund will also target companies working in energy, mining, manufacturing, housing and other areas of critical infrastructure.

Within construction, the firm plans to increase its investments in robotics, AI-powered machinery and new building materials.

“The industries that underpin modern life are entering a forced transformation cycle,” said Vivin Hegde, one of Zacua's three founding partners.

The fund has backing from more than 30 corporate and institutional investors across over 20 countries. They include major names in construction and industry such as Volvo Group, Holcim, Hilti and Trimble.

These investors play an active role in Zacua's approach. Their industry experience helps the firm assess whether a product can work in real-world conditions, while their networks can give portfolio companies access to potential customers.

Since launching its first $56m fund in 2024, Zacua has invested in 34 start-ups across 11 markets. All are still operating, according to the firm, and more than half of its investments are in North America.

The portfolio has already delivered its first exit. Construction risk management platform Document Crunch was acquired by Trimble earlier this year. Another portfolio company, Swiss start-up Gravis Robotics, which develops AI for autonomous construction machinery, raised $200m from SoftBank at a $1bn valuation.

Zacua has already begun deploying its second fund. Its first investments include Origin Robotics, which makes a robot that can finish interior walls autonomously, and CURA Climate, which is developing technology to reduce emissions from cement production. The firm has also backed Neuron Factory, an AI platform for planning construction projects.

Investor interest in construction technology is growing as AI moves beyond software and into physical work. Bedrock Robotics, for example, recently raised $600m as its autonomous excavators began securing paid contracts.

The potential market is substantial. McKinsey estimates that the world will need $106tn in infrastructure investment by 2040, according to Zacua.