'We built something amazing': Aconex co-founder on life after a $1.6b sale

Rob Phillpot still has mixed emotions when he thinks about the sale of Aconex, the construction technology company he co-founded with a school friend, to US software giant Oracle.

"Sad because it was a change, but proud because we built something amazing," he says. "I can imagine it would be like when your kid leaves to go to uni."

Rob Phillpot experienced mixed emotions after selling Aconex. Credit: Simon Schluter

It's just over a year since Oracle paid $1.6 billion for Aconex, with Phillpot and co-founder Leigh Jasper walking away with about $88.1 million and $92.3 million respectively from the deal.

"The first unicorn exit in construction technology was out of Australia, out of Melbourne actually, it was us, that was the first one in the world," Phillpot says.

A 'hair-on-fire' problem

Phillpot and Jasper, who boarded at Melbourne's Scotch College together, started Aconex 19 years ago to address what they saw as "the inefficient flow of information between organisations" in the construction industry. Their software digitally connects owners, builders and other teams to manage data, documents and costs across all stages of a construction project

Aconex co-founders Rob Phillpot and Leigh Jasper after selling their business to Oracle. Credit: Wayne Taylor

"[The sector] had a hair-on-fire problem around document management," Phillpot says.

"It's kind of almost embarrassing to look back, the solution in its early incarnation was really, really simple, almost embarrassingly simple but that's what you’ve got to start with. You have to start with something that is a minimum viable product and then you build on it and build on it and now we have something 18 years later that is much more sophisticated. But if you tried to build it all before you launch, you’d die and run out of money."

Aconex, which listed on the ASX in 2014, built a customer base of 70,000 user organisations in more than 70 countries and was used to manage more than $1 trillion in projects by the time of the sale.

Since starting Aconex, Phillpot says the construction industry has changed significantly but some of the same problems remain.

"It's the same as it is not connected enough, but it's different because the investment in construction tech has really hit an inflection point," he says.

In 2008, Phillpot says $US4.5 million ($6.7 million) was invested in construction tech startups. In 2013, this grew to just under $200 million and investment reached $600 million by 2018.

"The only reasons investment is ramping is people see the need [and] construction companies are then adopting these bits of tech," Phillpot says. "It is kind of like a necessary ecosystem, it's not a push, it’s not a pull, they need to co-exist."

A new gig

Following the sale, Phillpot and Jasper both stayed on at Oracle in its construction and engineering division. Philpott took on the role of global vice-president of product strategy, while Jasper is vice-resident of strategy and operations.

Phillpot says he's enjoying the challenges of his "new gig" as part of a larger organisation.

"I was doing project strategy at Aconex; now I'm doing product strategy across the whole portfolio of construction tech at Oracle," he says.

"From a personal perspective that's amazing because it is intellectually stimulating for one, and I get to influence how that works for the industry. Now we have all these other tools as part of our kitbag - we have scheduling and portfolio management and payment management and all these other things that we never had the resources to do."

Phillpot won't say how long he and Jasper are required to stay at Oracle.

As long as I have more to contribute and as long as I am enjoying it, I’ll stay.

"This is not about me leaving because I am contracted to Oracle or not," he says.

"I’m in this because the reasons I started Aconex still exist. I care about the industry and I want to transform it and I want to make it better. I actually have more opportunity to do this with this bigger tool kit.

"Whether I have a contracted end date or a hold-back period or not is kind of irrelevant. It’s more about, have I got more to contribute? As long as I have more to contribute and as long as I am enjoying it, I’ll stay."

He's enthusiastic about the opportunities in Australia for construction technology.

"Australia is punching above its weight when it comes to construction tech," he says.

"Productivity of the construction industry in Australia is one of the world's best. It is driven through necessity, partly because we have really high labour costs so you have to look at innovative ways to use technology to get more efficient.

"You can’t just throw people at the problem, you have to use technology to help that. It's partly our have-a-go nature as well, people are willing to have a go."