Investing in BALLAS
by Taku Uchimaru
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Z Venture Capital Joins BALLAS Series B as Co-Lead Investor — Backing the AI Procurement Platform Set to Transform the Construction Industry
Z Venture Capital (ZVC) has joined the Series B round of BALLAS, Inc. as co-lead investor. BALLAS is an AI-powered procurement platform taking on one of Japan's most entrenched industries: construction.
An Industry Under Pressure
Japan's construction sector is in crisis.
In 2023, the beloved Nakano Sun Plaza — a Tokyo landmark for decades — closed its doors. A major mixed-use redevelopment was planned for the site, but the projected cost ballooned from an initial ¥181 billion to nearly ¥350 billion, almost double the original estimate, driven by surging labor and materials costs. Nakano Ward ultimately announced in 2025 that it was voiding its foundational agreement with the developer. This is far from an isolated case. Major projects across Japan — including the Shibuya Station redevelopment — are being revised or scaled back.
The pressures are structural. Construction employment has fallen roughly 30% from its 1997 peak of 6.85 million workers to 4.77 million in 2024. The workforce is aging sharply: workers 55 and older now account for about 37% of the industry, while those under 29 represent just 12%. A wave of retirements looms with no sufficient pipeline of younger workers to replace them. Meanwhile, construction material prices have risen approximately 40% over the past several years. Smaller contractors, unable to pass these rising costs on to clients, are being squeezed out — and the numbers show it.
According to Teikoku Databank, labor-shortage bankruptcies across all industries hit a record 427 cases in 2025 — the third consecutive annual record — with construction accounting for 113 of them, more than any other sector. Total construction industry bankruptcies reached 2,021, a ten-year high. The industry can no longer sustain itself on the status quo.
Why Now
There is a more hopeful dimension to this story.
The advances in AI over the past few years have created genuine possibilities for attacking structural inefficiencies that were previously intractable. Construction is an industry where change has historically moved slowly — but we believe the conditions for accelerated transformation are now in place.
BALLAS is working at the center of that opportunity.
What BALLAS Does
BALLAS was founded on the mission: "Optimize construction. Make people's lives better."
At the root of construction's inefficiency is a fragmented process: design, procurement, fabrication, and installation operate as separate silos. Procurement of custom building components in particular has remained highly manual and person-dependent — driven by individual experience and intuition rather than any industry standard. This fragmentation is a direct driver of cost overruns, schedule delays, and labor shortages.
BALLAS addresses this through its AI-powered procurement platform. By providing a one-stop solution covering design standardization through component manufacturing and delivery, and by applying AI throughout, the platform delivers a roughly 30% reduction in total procurement costs. The company currently serves two segments: MEP (mechanical, electrical, and plumbing) construction and architectural construction.
The ambition extends beyond workflow efficiency. By standardizing supply chain data across specifications, transactions, and production processes, BALLAS aims to rebuild procurement as the foundation of a smarter, more connected construction supply chain.
Less labor, higher output — because AI optimizes the procurement process. Rising materials costs, reduced waste — because data-driven sourcing protects margins. That is what BALLAS brings to the industry.
Why We Invested
At the root of construction's inefficiency is a fragmented process: design, procurement, fabrication, and installation operate as separate silos. Procurement of custom building components in particular has remained highly manual and person-dependent — driven by individual experience and intuition rather than any industry standard.
This fragmentation is a direct driver of cost overruns, schedule delays, and labor shortages.
ZVC is proud to back BALLAS in that effort. We believe they are positioned to become a defining force in the transformation of Japan's construction sector — and we look forward to building that future alongside them.
About BALLAS
https://ballas-inc.notion.site/ballas-entrancebook
References
*¹ Nikkei Cross Tech: Nakano Sun Plaza Redevelopment Scrapped Two Years After Closure; Ward to Revise Master Plan in Spring 2026
*⁴ Japan Federation of Construction Contractors:Construction Costs | Current State of the Construction Industry
⁵ Teikoku Databank,"Construction Industry Bankruptcy Trends (2025)"
