The housing boom ignited the construction technology space. Despite the fact that the market has cooled, the funding round demonstrates that investors remain optimistic, and the space remains competitive.
Now, Modulous, a Seattle and London-based construction tech startup, has raised £10M in Series A funding led by SFV, the venture capital fund backed by Patrizia (the German real estate developer).
Sustainable Future Ventures (SFV) (Germany), Regal London (UK), CEMEX Ventures (Mexico), Blackhorn Ventures (US), GroundBreak Ventures (Canada), Goldacre (UK), and Leela Capital are among the investors in the round (UK).
With the funding, the company intends to work with developers, public housing providers, architects, and construction firms to provide them with a configurable Kit of Parts for building modular homes without the need for a factory.
Further, Modulous also hired former real estate design executive Sam Gioia to lead its manufacturing and assembly division.
Automates design, costing and programming
Sustainability in construction is the next big thing. A lot of contech startups are securing investments for the same, like 011h, a new-generation, sustainable building platform headquartered in Barcelona which also recently raised €25 million in Series A funding. Meanwhile, Modulous creates software for multifamily unit developers that manages design and cost lines for various projects by relying on prefabricated components with consistent cost and installation times.
It works with suppliers to pre-build modular home components that construction companies can purchase through Modulous’ “Kit of Parts.” The components are built off-site and delivered to the project for assembly.
Modulous acts as a software intermediary between manufacturers and construction or architecture firms that are unable to fund factory costs themselves.
In 2018, Chris Bone, Chris Mortensen, Markus Cosmann, Reimell Ragnauth, and Romill Bettany founded Modulous. Unlike other companies, they use modern methods of construction (MMC), and operates without the use of factories. The company’s global supply chain and logistics investments will allow it to become more scalable and responsive to the cyclical nature of the housing market.
Chris Bone, CEO at Modulous, said, “Building energy efficient, affordable housing without the waste and carbon footprint that accompanies traditional construction has never been more critical. Modular delivery is really the only way the housing crisis can be resolved, but, for many, the upfront capital investment has held back the industry’s ability to scale. We are keen to prove that by collaborating with each other, the industry can move forward with transparency and cost certainty front and centre. That’s why we are delighted to have completed this Series A round in the most testing funding environment for decades. It’s a testament to the potential we have to solve the housing crisis and to the amazing team we have built.”
Conan Lauterpacht, Partner at Sustainable Future Ventures, said, “We are very pleased to back the outstanding Modulous team, which brings together experts across design, construction, and technology. Modulous stands out for us in the way it has brought together the physical and the digital in the built environment by combining its ground-breaking “Kit of Parts” modular solution with a digital design platform. We are excited to support the company’s mission to reinvent the way homes are delivered while prioritising better outcomes for people and planet.”
Jonathan Seal, CEO at Regal London, said, “We are delighted to be participating in this funding round and entering into a strategic relationship with Modulous. We believe that Modulous is making great strides to truly disrupt the real estate industry as the sector moves towards delivering net zero developments. We are thrilled to be partnering with Modulous, bringing together Regal London’s fully integrated delivery model and Modulous’ technological innovation – we are excited to be part of this journey.”
