Mighty Buildings, a construction 3D printing startup, has raised $40 million to scale production and open a second manufacturing facility, the company announced Tuesday.
The Oakland startup, which uses 3D printing and automation technology to build houses, is in the process of scouting locations outside the Bay Area for the facility, which would bring 20 to 30 new jobs, said Sam Ruben, co-founder and chief sustainability officer of Mighty Buildings. The company has an eye on Seattle, Denver and Florida, all areas where it sees increasing demand for affordable housing options.
The funding was led by Khosla Ventures and co-led by Zeno Ventures. The company has raised roughly $70 million from investors to date.
"One of things we've seen, even in the midst of a pandemic, is that we are still in a housing crisis, and what investor like about us is that Mighty Buildings unlocks the potential of the existing labor market," Ruben said.
Mighty Buildings can make a 350-square-foot studio home in 24 hours under $200,000. Just this year, the company started taking orders for its larger product, Mighty Houses, which will range from 864 to 1,440 square feet with a price range of $303,000 to $430,500.
Might Buildings was founded in 2017 by Alexey Dubov, Dmitry Starodubtsev, Sam Ruben and Slava Solonitsyn, but didn't officially launch until the summer of 2020. Working out of a 79,000-square-foot production facility in Oakland, the company can print out three houses a day. It has grown to more than 100 employees.
Since last summer, demand for Mighty Buildings' 3D printed studios has increased 10 times, according to the company, despite being in pandemic. The company has installed five studios in the East Bay and San Diego, but has bookings for about 30 more.
Because of its 3D-printing, robotics and automation technology, Mighty Buildings claims it can build 3D houses twice as quickly with 95% less labor hours and 10 times less waste than typical construction. Mighty Buildings combines 3D printing and prefabrication to construct homes.
According to the company, its high-tech building methods can nearly cut the cost of the average home in California, which costs $327 per square foot, by up to 45% less than comparable homes.
With other competitors creeping into the space, like Austin-based construction tech startup Icon, which raised $35 million in Series A in August 2020 and has built 20 homes so far in the U.S. and Mexico, Mighty Buildings stays ahead of the game by focusing on automating as much more of the house constructing process as it can, which allows them to have less waste and greater control of the product.
The company also aims to expand its business model from a primarily direct-to-consumer to include B2B services, whereby developers purchase fabricated products from Mighty Buildings.
And by next year, Mighty Building plans to start building homes of three to five stories.