Prefab space is getting crowded
Prefab construction startup, Dvele has raised a $14 million Series A round from Crescent Real Estate, the company announced. This comes a few months after Amazon invested in Plant Prefab, which also manufactures customized homes off-site. The companies try to use technology to make the process of building a house more efficient and cost-effective.
Historical Context: Sears sold more than 70,000 kit houses through mail order between 1908 and 1940. The company shipped them via railroad boxcars, and the kits included most of the materials needed to build a house. Upon delivery, many of them were assembled by the new homeowner. Although the idea was brilliant, Sears served as the lender on the houses, and were ultimately forced to default on many of them during the great recession.
Be Smart: Katerra is the king of the space. The SoftBank-backed company seeks to optimize the construction process for all asset types. Katerra generated north of $500 million in revenue last year and is hoping to exceed $2 billion this year.
Worth Noting: Another competitor Prescient focuses on multi-family properties, and has already raised $103 million.