The opportunity is not simply that these markets are large and growing. It is that the software serving them is structurally different from what Silicon Valley typically builds.
It is mission-critical: the last system a superintendent, plant manager, or station owner turns off before shutting down for the day. It is embedded in regulatory, compliance, and operational workflows where switching costs are extraordinarily high. And it is typically built by domain experts who understand their industry deeply but lack the capital and operational sophistication to scale.
That gap, between the quality of the product and the sophistication of the business around it, is where ModVedi invests.
Construction software
Roughly $10.8B in 2025, projected to reach $19–25B by 2030.
Industrial software
About $21.5B in 2024, forecast to approach $46.6B by 2029.
Facility management
On pace to reach $3.6B by 2030, growing ~10–11% a year.
The pattern
Mission-critical, deeply embedded, extraordinarily durable, and under-digitized.
This is not a story about software replacing spreadsheets. Six technology waves are converging on asset-intensive industries at once.
Artificial intelligence is moving from experimental to operational: 74% of architecture, engineering, and construction firms already use it in at least one project phase. Digital twins are moving from pilots to production infrastructure. Embedded finance is becoming standard inside vertical platforms. The Internet of Things is instrumenting physical operations at scale. Cloud migration in these sectors is still in early innings. And agentic AI is the next frontier: software that doesn’t just flag a maintenance issue, but schedules the technician, orders the part, updates the compliance record, and closes the work order automatically.
The software that sits at the center of that convergence becomes exponentially more valuable with each wave. That is the software we invest in.
Three forces are converging to create a rare entry point for this strategy.
Succession
A generation of founder-operators who built vertical SaaS in the 2010s are reaching succession decisions: many bootstrapped, profitable, with no clear path to exit.
Compression
Vertical software venture funding dropped 94% in early 2026. Founders are seeking permanent capital partners, expanding our deal universe and improving entry pricing.
Specialists win
Top-quartile sector specialists achieved 24.5% IRR versus 21.7% for generalists across 2006–2020 vintages. The market rewards exactly what we are built to do.
Our timing
Deep sector expertise, operational value creation, and disciplined capital allocation, at the moment the old playbook of leverage and multiple expansion has broken.
The thesis resolves into two disciplines: how we acquire and invest, and the architecture that makes the firm stronger under pressure.
Control acquisitions of founder-built vertical software. Four levers of operational value creation, not financial engineering.
An antifragile architecture: bounded risk, milestone accountability, and a version-controlled playbook that improves with every input.