US-based construction tech startup, Mosaic Building Group, has raised $44m (c.£32.6m) in a Series B funding round led by Peak State Ventures.
New investors Starwood Capital, invisionAZ, Tekfen Ventures, and Brightstone also put money in the round. They joined previous backers Andreessen Horowitz (a16z), Building Ventures, Innovation Endeavors, 8VC, and Founders Fund, bringing Mosaic’s total funding to $68.75 million (c.£50.9m) since its 2015 inception.
The startup has developed a software that automates the construction planning process to shorten build times, cut costs, reduce materials waste, and improve construction quality for homebuilders.
It does this by digitising standard construction plans and identifying the best way for homes to be built onsite, using the same materials, workers, and procedures as traditional home builders do.
Salman Ahmad, co-founder and CEO of Mosaic, said: “We’ve been trying to vertically integrate our construction operations with our technology stack.
“Instead of us trying to take the approach of just building software that addresses a single point solution, we’re basically trying to do what AWS did for tech startups where home builders and residential developers are able to offload their construction operations to Mosaic and focus their time and energy on their business operations.”
“We believe that the trade partners are the industry’s most precious resources and a lot of Mosaic’s focus has been to develop technologies and tools to really enable our trade partners to be successful and to be able to lean on Mosaic as a trusted and preferred building partner.
“It’s becoming increasingly obvious to us that maximising the efficiency of the precious trade resources that we have is paramount to not just our success as a business, but the success of the industry and to addressing some of the broader housing crises that exist across the country.”
Jason Freedman, partner at Peak State Ventures, believes that the most innovation in the sector has until recently been in moving construction offsite and standardising it.
“But that doesn’t serve the other 99.99% of homes that are still customised to the buyer and built on site,” he said.
“No one has figured out a way to change that equation until Sep [Kamvar] and Salman started Mosaic, and the magic of why Mosaic works is they care just as much about why people work together as the homes that get built.”
To date, Mosaic has completed 160 homes and has 195 under construction, with plans to build 400 homes over the next two years.
The company is looking to double its current 70-person headcount by the end of 2022 and to speed up the construction of homes within its more than $500m (c.£370.5m) residential development project pipeline.
Image credit: Mosaic
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