Japanese company SoftBank Group just followed up a series of massive investments in U.S. real estate with another huge commitment to Katerra – a burgeoning construction company. Katerra utilizes technology to streamline the construction process, which they claim greatly boosts productivity and efficiency.
- SoftBank Group has invested billions in the U.S. real estate market over the past few years
- SoftBank recently led a $865 investment round for California-based construction company Katerra
- Katerra uses its own software platform to optimize the construction process
Katerra is a forward-looking construction company that hopes to revolutionize – and disrupt – the construction industry. The California-based company was founded in 2015 and just became the latest funding target for Japanese technology powerhouse SoftBank Group.
SoftBank Vision Fund led Katerra’s $865 million Series D investment round in the latest of their sizeable investments and acquisition’s in the U.S. real estate market. Last year SoftBank acquired Fortress Investment Group – a company with substantial presence in U.S. real estate – for $3.3 billion.
Katerra attracted they eye of SoftBank with their unique take on the construction process. The promising young construction company uses technology to optimize every aspect of the process.
“The construction industry is ripe for digital disruption. Katerra leverages its own software platform to remove time and costs from building development and construction,” said Michael Marks, chairman and co-founder of Katerra.
Jeffrey Housenbold, managing partner for SoftBank Investment Advisers, showed a lot of faith in Katerra’s potential to change the construction industry. Housenbold will join Katerra’s board of directors as a part of the deal.
“The $12 trillion construction industry is extremely fragmented with tens of thousands of companies using minimal levels of technology. While labor-productivity growth has skyrocketed in the overall global economy, the construction industry has averaged only 1% annual productivity growth over the past two decades,” Housenbold said.
“Katerra is leveraging the latest technologies to radically transform the way people build. Drawing on his experience leading Flextronics, Michael’s unique vision and talented team are taking the great lessons of electronic manufacturing and applying them to an industry that is in dire need of change.”