Construction Tech Startup Katerra Receives $200 Million From Investor

Katerra escaped bankruptcy through an investment from investor SoftBank.

Katerra, a technology-enabled construction company, says its shareholders have approved a recapitalization of the business that will enable the company to stay in business.
Katerra, a technology-enabled construction company, says its shareholders have approved a recapitalization of the business that will enable the company to stay in business.
Katerra

Katerra, a technology-enabled construction company, says its shareholders have approved a recapitalization of the business that will enable the company to avoid bankruptcy and stay in business. The company sells building platforms, structural systems like truss assemblies, as well as cross-laminated timber, commercial glass and more. It aims to use technology and modern building materials to "help address some of the industry's most entrenched challenges."

The approved recapitalization will strengthen Katerra’s balance sheet by eliminating significant debt and providing $200 million of new funding, principally from SoftBank Vision Fund 1. As Katerra exits 2020 with nearly $2 billion in revenue, this new funding enables Katerra to continue its focus on delivering design and construction services for customers. Its business lines include:

  • Commercial release of Katerra’s first building platform, a multifamily garden walk-up building designed as a configurable product and offering cost and schedule predictability for developer customers.
  • Continued growth of the North American mass timber market, leveraging Katerra’s cross-laminated timber manufacturing, design and installation capabilities.
  • Growth of Katerra’s national network of general contracting, renovations and affiliated design partners, which will support deployment of Katerra’s building platforms, as well as traditional construction projects.
  • Advancement of Katerra’s businesses in Saudi Arabia and India, both of which are supported by a backlog and established factory operations and are positioned to help address critical housing needs.

As a part of this new chapter, Katerra has strengthened its leadership team, drawing from highly industrialized sectors. 


“The decision to recapitalize follows a thorough review of options available to us to enhance our financial strength and ensure Katerra’s ability to continue to pursue our goal of transforming the construction industry,” says Paal Kibsgaard, Katerra’s CEO. “Since taking over as CEO in July 2020, my team and I have been hard at work reducing costs and refocusing on our core businesses. We believe that this strategic and operational realignment, supported by SoftBank, is in the best interest of all stakeholders and will provide Katerra with the financial flexibility and resources needed to invest in areas that have the most promising growth trajectory. We appreciate SoftBank’s continued support and confidence in the company and its prospects throughout this process.”


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