Factory_OS has raised $55 million in a Series B funding round, Forbes reported. The round was led by Lafayette Square with participation from Autodesk, Citi, Facebook, Google, and Morgan Stanley. The tech company drives efficiencies in multi-unit housing construction by building modular components in an offsite assembly line operation.
- Dig Deeper: The “OS” in the company name is said to refer to both “operating system” for the high-technology approach to housing construction and to “off site” for factory-based homebuilding. By framing, plumbing, wiring, insulating, wallboarding, painting and finishing the units in the factory, the company said it currently can cut 25%–30% off the cost of constructing the dwellings at the project location, which can be $700,000–$800,000 a unit in downtown San Francisco and Oakland. Other touted benefits for factory homebuilding are 40% faster project completion and 70% reduction in materials waste, NorthBayBusinessJournal noted.
- Worth Noting: Factory_OS had previously raised almost $23 million in equity funding in 2019. The company is based in Vallejo, California, and has about 500 employees.
- Heard on the Street: CEO Rick Holliday: “We’ve gone from a brand new startup to functional and now from functional to stable…Demand for what we’re doing is increasing.” Revenue is on track to end this year with $80 million in revenue and is projecting $150 million next year. The company received a $40 million deposit for six projects to be built in 2021–2022. [Forbes+NorthBayBusinessJournal]