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Katerra was an American technology-driven off-site construction company. It was founded in 2015 by Michael Marks, former CEO of Flextronics and former Tesla interim CEO, along with Fritz Wolff, the executive chairman of The Wolff Co. [3] Katerra was listed on LinkedIn's "Top Startup Companies" to work for in 2017. [4]
Jun 1, 2021 · Katerra, a company that aimed to cheaply build properties for real estate developers, has failed after raising more than $2 billion. The company faced financial troubles due to the pandemic and received a $200 million bailout from SoftBank, but it was not enough to save it.
- Revolutionizing The Construction Business
- Softbank Takes Note
- Trouble Begins to Brew
- A Recovery That Never Happened
- Lessons Learned
- Contech Funding Booms in 2021
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The business proposition of Katerra was simple: handle all aspects of the construction process. The company branded itself as the architect, the engineer, the general contractor and the subcontractor of its projects. Its goal was to own construction jobs all the way from property acquisition to architecture, design, construction and management of t...
The company’s rise to the top of construction startups occurred at the same time that more funding was being allocated to construction technology and contractor interest in modular construction was increasing. “I think what Katerra did as a strategy makes intellectual, logical sense — we’ll try to manufacture more away from the site,” said David Br...
By the second half of 2019, there were major signs of trouble. The company faced heightened scrutiny, especially as SoftBank’s other high-flying startup, WeWork, had just gone through its IPO debacle. In just one month, the coworking company removed its CEO Adam Neumann, delayed its IPO indefinitely and saw its valuation slashed from $47 billion to...
Already struggling, the COVID-19 outbreak ultimately proved to be the last blow for Katerra. The company placed numerous jobs on hold due to challenges from the pandemic, including projects in San Marcos, Texas, Washington state and New Jersey. Its projects in India were halted as well. In a last ditch effort, another $200 million funding round in ...
The biggest issue that Katerra never seemed to solve, according to observers, was convincing developers and contractors to move away from their traditional subcontractors. Developers and contractors have “very sticky relationships with their own engineers, own suppliers and their own construction relationships,” said Peter Lewis, chairman and presi...
Despite the billions lost on Katerra, investors are pouring a record amount of money into other construction-related endeavors. Total funding to the construction technology sector so far in 2021 is already more than $2 billion, according to a Construction Dive analysis of Crunchbase data. That is more than a 100% increase from 2020, and may be bols...
Katerra, a startup that aimed to revolutionize construction with vertical integration and mass manufacturing, failed to convince developers and builders to change their ways. The company spent billions of investor money, acquired several firms, and faced challenges from COVID-19 and Greensill's insolvency.
- Sebastian Obando
Jun 7, 2021 · Katerra, the US construction start-up backed by SoftBank’s Vision Fund, filed for bankruptcy with more than $1bn in liabilities, becoming the second leading company in the Japanese conglomerate...
Jun 8, 2021 · Katerra, a construction startup backed by SoftBank and Greensill, filed for Chapter 11 bankruptcy in June 2021. The company blamed COVID-19, bonding issues and capital shortage for its financial troubles, but also faced the fallout of Greensill's insolvency.
Jun 7, 2021 · Construction firm Katerra Inc. filed for bankruptcy protection in the U.S., bookending the implosion of a startup that raised about $2 billion from investors including SoftBank Group Corp.
Jun 1, 2021 · Construction startup Katerra Inc. is shutting down, according to a person familiar with the matter, a dramatic collapse for a company that raised about $2 billion from investors including...
