Katerra Valuation, Funding & Investors
Katerra is valued at $3B as of September 2018.
Last Katerra valuation
$3B
Series D · Sep 2018
Last Katerra funding round
$200M
Undisclosed stage · Jan 2021
Cumulative funding Katerra raised
$1.6B
across 10 funding rounds
Key investors in Katerra
SoftBank Group
Celesta Capital
RiverPark Ventures
Khosla Ventures
Greenoaks
Fuel Capital
About Katerra
Katerra is a Palo Alto-headquartered vertical integrator for residential and commercial construction. Combining design, manufacturing, and supply chain operations, the company prefabricates components like wall panels and roof trusses at factories in California, Nevada, and Arizona. Active on projects including multifamily housing and offices, Katerra maintains offices across the United States and Asia to streamline development timelines.
Founded
2015
HQ
San Francisco, CAWebsite
Status
Privately held
Customer focus
B2B
Revenue model
Services
Valuation
$3B (Sep 2018)
Katerra Valuation
Katerra is currently valued at $3B, based on its Series D in September 2018.
The $134M round included Celesta Capital.
Katerra's valuation has grown 3.0x from $1B at its Series B in March 2016 to $3B in September 2018, across 4 priced rounds.
Katerra valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Sep 2018 | Series D | $3B |
| Jan 2018 | Series D | $3B |
| Apr 2017 | Series C | $1B |
| Mar 2016 | Series B | $1B |
Katerra Funding History
Katerra has raised a total of $1.6B across 10 funding rounds.
Katerra's first fundraising round was a $1M seed round in February 2015. The most recent completed round was a $200M undisclosed-stage round in January 2021.
Katerra funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Jan 2021 | Undisclosed stage | SoftBank Group (lead) | $200M | - | Katerra, a US-based construction services provider, offered property developers an end-to-end suite of services including design, engineering, materials provision, manufacturing, and construction itself. The company faced significant challenges including project delays from the coronavirus pandemic, budget overruns, multiple layoffs, and leadership changes, with Paal Kibsgaard taking over as CEO in July 2020. SoftBank's Vision Fund provided a $200 million investment around December 30, 2020 to January 1, 2021, securing a majority stake and severely diluting other shareholders, while Greensill Capital (SoftBank-backed) canceled $435 million in debt for a 5% equity stake. This bailout was critical to avoid bankruptcy and support ongoing operations, following prior SoftBank investments totaling around $2 billion including an $865 million Series D in 2018 and another $200 million in May 2020. Katerra recorded almost $2 billion in revenue during 2020, as stated in its announcement of the funding. The cash infusion was intended to enhance financial flexibility, reduce costs, refocus on core businesses, and invest in promising growth areas like its first building platform for repeatable manufacturing. Despite these efforts, the company continued to struggle with profitability and cash burn. SoftBank had led multiple prior rounds and committed significant capital to Katerra, which had raised approximately $1.5-2 billion overall from investors including Khosla Ventures, Greenoaks Capital, and Foxconn. However, Katerra filed for Chapter 11 bankruptcy in June 2021 and shut down amid investigations into accounting practices and missed financial goals. The episode drew comparisons to SoftBank's troubled WeWork investment, highlighting risks in aggressive growth-focused strategies in construction tech. |
| May 2020 | Undisclosed stage | SoftBank Group (lead) | $200M | - | Katerra was a vertically integrated construction startup aiming to remake the industry through prefabricated materials, end-to-end services, and technological innovation, having raised approximately $2 billion prior to 2020 primarily from SoftBank's Vision Fund. In May 2020, amid financial distress, cost overruns, project delays from COVID-19, and accounting irregularities, SoftBank invested $200 million as part of a restructuring where Paal Kibsgaard replaced Michael Marks as CEO to stabilize operations. This infusion followed earlier heavy funding, including an $865 million round in 2018, and preceded a second $200 million bailout in December 2020 that included debt cancellation from SoftBank-backed Greensill Capital in exchange for additional equity. Katerra reported revenue between $1.5 billion and $2 billion for 2020, as stated by CEO Kibsgaard to shareholders and reported via WSJ, positioning it for significant cash generation despite challenges. Katerra's trajectory highlighted risks in construction tech, as it became the most-funded player in the sector yet succumbed to cash burn and operational issues, filing for Chapter 11 bankruptcy by June 2021 and shutting down. SoftBank gained majority control post-December 2020 but could not prevent failure, drawing parallels to WeWork. The company had acquired over a dozen firms and employed 5,000-10,000 people at peak, underscoring its ambitious scale before insolvency. |
| Nov 2019 | Series E | Celesta Capital | $3M | - | - |
| Sep 2018 | Series D | Celesta Capital | $134M | $3B | - |
| Jan 2018 | Series D | SoftBank Group (lead); Four Score Capital; RiverPark Ventures; Navitas Capital; DivcoWest | $865M | $3B | Katerra, a Silicon Valley-based construction-tech company providing end-to-end services from design to construction, raised $865 million in a Series D round on January 24, 2018, led by SoftBank Vision Fund with participation from DivcoWest, Navitas Capital, and others. The funding propelled the company's post-money valuation to over $3 billion, marking it as a unicorn and the sixth largest U.S. venture round in the prior year. Chairman Michael Marks highlighted the investment's role in advancing R&D, scaling operations, and disrupting the construction industry through proprietary software that reduces time and costs. The capital aimed to reassure large customers of Katerra's stability following prior raises, including $130 million in Series C at over $1 billion valuation. Post-round, Katerra pursued aggressive expansion, acquiring firms like Fields Construction, Michael Green Architecture, and Lord Aeck Sargent, while targeting mass timber projects and multifamily units on the West Coast. |
| Dec 2017 | Undisclosed stage | Investopad | $28M | - | Katerra was a construction technology startup aiming to disrupt the industry through prefabricated materials, modular construction, end-to-end building services including architecture, engineering, and materials supply. Founded in 2015 by Michael Marks and Fritz Wolff, it reached a $1 billion valuation by April 2017 and was listed among LinkedIn's top startups in November 2017. The company raised significant funding, including an $865 million Series D in January 2018 led by SoftBank's Vision Fund, which valued it at over $4 billion, supporting expansion and technology development. It acquired companies like KEF Infra in 2018, bringing in over $3.5 billion in bookings for offsite manufacturing. Katerra became the most heavily funded player in construction tech, raising around $2 billion overall, primarily from SoftBank, Khosla Ventures, and others, with multiple large rounds including $200 million in 2021. Despite projections of revenue surpassing $2 billion in 2019 and later claims of $1.7 billion annual revenue, it faced operational issues like underbidding projects, missing deadlines, budget overruns, and accumulating up to $2.8 billion in debt. SoftBank provided bailouts, including $200 million in May 2020 and another $200 million later, with Greensill forgiving $435 million in debt for equity. The company collapsed in 2021, filing for Chapter 11 bankruptcy after burning through $2.2 billion in funding, amid accounting investigations and failure to meet financial goals, leading to shutdown and thousands of layoffs. No details were found on a $27.8 million round from Investopad in December 2017; searches focused on later SoftBank-led investments and the firm's ultimate demise, which served as a cautionary tale for contech despite ongoing sector investment growth. |
| Apr 2017 | Series C | Greenoaks (lead); Foxconn; RiverPark Ventures; Lucas Venture Group; Khosla Ventures; DFJ Growth; Celesta Capital; Moore Capital; Paxion Capital Partners | $130M | $1B | Katerra, founded in 2015 and based in Menlo Park, CA, is a construction technology company that integrates design, material sourcing, manufacturing, logistics, and construction into a single platform to streamline the building process, targeting inefficiencies in the multi-trillion-dollar industry. Led by executive chairman Michael Marks, former CEO of Flextronics, the company draws parallels between tech manufacturing supply chains and construction, focusing initially on multifamily projects in Seattle and Portland with plans for expansion. It employs proprietary software for cost-effective layouts, factory assembly of components, and on-site installation to control quality and costs via prefabrication. On April 13, 2017, Katerra raised $130 million in a Series C funding round led by Greenoaks Capital, with participation from Celesta Capital, DFJ Growth, Foxconn Technology Group, Khosla Ventures, Lucas Venture Group, Moore Capital, Paxion Capital Partners, and RiverPark Ventures, bringing total funding to approximately $220 million at a post-money valuation exceeding $1 billion, earning unicorn status. Proceeds were allocated to research and development, production facilities, and general corporate purposes for its team of over 550 employees. Katerra's ambitious vertical integration differentiates it from competitors like Prescient and Rhumbix, which focus on narrower aspects, but analysts noted risks in managing multiple construction stages. This round preceded larger raises, including an $865 million Series D in 2018 valuing the company at $3 billion. |
| Mar 2016 | Series B | - | $76M | $1B | Katerra is a US-based technology company that optimizes building development, design, and construction by providing an end-to-end platform. It streamlines the process from design software that generates layouts based on user inputs, bulk material sourcing, manufacturing at facilities like its Phoenix, Arizona site, to on-site assembly and construction services. Founded in 2015, Katerra emerged from stealth with a Series C round of $130 million at a valuation exceeding $1 billion, bringing total funding to $220 million from investors including Foxconn, Greenoaks Capital, Moore Capital Management, Khosla Ventures, DFJ, and Paxion. Proceeds were allocated to research and development, additional factories, and general corporate purposes. This round followed an initial funding that grew to $75 million, with Foxconn contributing $51 million. Later developments included larger SoftBank-led rounds, such as $865 million in January 2018, pushing total funding toward $2 billion, but Katerra ultimately filed for bankruptcy in 2021 amid cash burn and accounting issues. The company positioned itself as a full-stack provider in the construction tech space, handling architecture, engineering, materials, and labor management, though it faced challenges scaling. |
| Jun 2015 | Series A | Fuel Capital | $7M | - | - |
| Feb 2015 | Seed | - | $1M | - | - |
Who has invested in Katerra?
15 investors have backed Katerra across its funding rounds, including SoftBank Group, Celesta Capital, RiverPark Ventures, Khosla Ventures, Greenoaks and Fuel Capital.
Lead investors include SoftBank Group and Greenoaks.
Katerra Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
 Tokyo | 3 | Lead | Jan 2018 | |
| San Francisco, CA | 3 | Participant | Apr 2017 | |
| New York City, NY | 2 | Participant | Apr 2017 | |
| San Francisco, CA | 1 | Lead | Apr 2017 | |
 Taipei | 1 | Participant | Apr 2017 | |
| Boston, MA | 1 | Participant | Jan 2018 | |
| San Francisco, CA | 1 | Participant | Apr 2017 | |
| San Francisco, CA | 1 | Participant | Apr 2017 | |
| San Francisco, CA | 1 | Participant | Apr 2017 | |
 Gurgaon | 1 | Participant | Dec 2017 | |
| Los Angeles, CA | 1 | Participant | Jan 2018 | |
| San Francisco, CA | 1 | Participant | Jun 2015 | |
| New York City, NY | 1 | Participant | Apr 2017 | |
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Start Free TrialAcquisitions by Katerra
Katerra has acquired 3 companies to date.
Last acquisition by Katerra was on October 3rd 2018. Katerra acquired Bristlecone Construction Corp. for undisclosed valuation.
Latest Acquisitions by Katerra
| Description | Bristlecone Construction Corp. is a Sparks, Nevada-headquartered general contractor focused on commercial and multi-family developments. It manages projects valued from $500,000 to $55 million across healthcare, education, and hospitality sectors. The firm has completed over 100 builds in the western United States since 2006. | Lord Aeck Sargent is an Atlanta-headquartered architecture firm designing performing arts centers, higher education facilities, and adaptive reuse projects. The 250-person practice led the renovation of Atlanta Symphony Hall and Spelman College dorms, earning AIA awards. Established through 2014 merger, it operates studios in Boulder and Charlotte serving clients nationwide. | Michael Green Architecture is a Vancouver-based firm specializing in architecture and interior design for large-scale timber structures worldwide. Led by Michael Green, the studio pioneers mass timber construction in high-rise buildings, cultural centers, and educational facilities. Projects include the Wood Innovation Design Centre in British Columbia and the T3 office building in Minneapolis, emphasizing sustainable materials and seismic performance. |
| HQ Country | | |  |
| HQ City | Boston, MA | Atlanta, GA | Vancouver |
| Deal Date | 3 Oct 2018 | 14 Jun 2018 | 31 May 2018 |
| Valuation | undisclosed | undisclosed | undisclosed |
| EV/Revenue | |||
| EV/EBITDA | |||
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Katerra Competitors
Katerra competitors include listed companies like Knife River, Peab and Grupo Argos, and private ones like Prescient, Renco USA and SIBS.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| United States | Publicly listed | $3.1B | $489M | $3.1B | 1.4x | |
 Sweden | Publicly listed | $6B | $315M | $2.8B | 0.6x | |
 Colombia | Publicly listed | $3.7B | $958M | $4B | 1.5x | |
| Charlotte, NC | Private | - | - | $650M | - | |
| Miami, FL | Private | - | - | $318M | - | |
| Stockholm | Private | - | - | $237M | - |
Katerra Public Comps
Katerra is still privately-owned, but its public comps include Hill & Smith, Bravida Holding, Grenergy Renovables, Aktor Group, Veidekke, Knife River, Bird Construction, Downer EDI, Electra and Honeywell Automation.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $1.1B | $213M | 2.8x | 2.6x | 14.9x | 12.4x | |||
| $2.9B | $234M | 1.0x | 1.0x | 12.9x | 11.5x | |||
| $804M | $199M | 5.4x | 3.9x | 21.8x | 16.3x | |||
| $1.6B | $165M | 2.7x | - | 26.1x | - | |||
| $4.6B | $329M | 0.6x | 0.6x | 8.3x | 8.1x | |||
| $3.1B | $489M | 1.5x | 1.4x | 9.7x | 9.0x | |||
| $2.4B | $115M | 1.4x | 1.2x | 29.1x | 17.0x | |||
| $6.9B | $475M | 0.5x | 0.5x | 7.7x | 6.7x | |||
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Common questions about Katerra
| When was Katerra founded? | Katerra was founded in 2015. |
| Where is Katerra headquartered? | Katerra is headquartered in San Francisco, CA, United States. |
| Is Katerra publicly listed? | No, Katerra is a private, VC-backed company. |
| What is Katerra's valuation? | Katerra was last valued at $3B in its Series D in September 2018. |
| How much funding has Katerra raised? | Katerra has raised $1.6B across 10 funding rounds. |
| What was Katerra's last funding round? | Katerra's last funding round was a $200M undisclosed-stage round in January 2021, led by SoftBank Group. |
| Who are Katerra's investors? | Katerra's investors include SoftBank Group, Celesta Capital, RiverPark Ventures, Greenoaks, Foxconn, Four Score Capital, Lucas Venture Group, Khosla Ventures, DFJ Growth, Investopad and 5 others. |
| Which companies are comparable to Katerra? | Companies comparable to Katerra include Knife River, Peab, Grupo Argos, Prescient, Renco USA and SIBS. |
| How many companies has Katerra acquired? | Katerra has acquired 3 companies, including Bristlecone Construction Corp., Lord Aeck Sargent and Michael Green Architecture. |
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