Mosaic raises $44 million to automate the construction planning process – TechCrunch
Mosaic building group, a Phoenix, Arizona-based construction technology startup, raised $44 million 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 since its inception in 2015.
In a nutshell, Mosaic software and team serve as a technology-equipped general contractor for production-scale residential development projects. In other words, the company is managing construction infrastructure in what it says is an effort to free up property developers to focus on things like land acquisition, sales and marketing and l ‘architecture. The end goal? Make residential construction more scalable.
The startup says it’s able to do this because its technology actually automates the construction planning process. Its software is designed to shorten construction times, reduce costs, reduce material waste and improve construction quality for home builders. At its core, Mosaic’s technology digitizes standard building plans and identifies the best way to build homes on-site, using the same materials, workers and procedures as traditional home builders.
According to Salman Ahmad, co-founder and CEO of Mosaic: “We’ve tried to vertically integrate our build operations with our technology stack…instead of trying to take the approach of just building software that addresses a single solution, we’re basically trying to do what AWS made for tech startups where homebuilders and residential developers can offload their construction operations to Mosaic and focus their time and energy on their business operations.
There are a number of proptech companies that use software to make construction more efficient, but Mosaic has taken a unique strategy of partnering with a home builder, Mandalay Homes, in a move that created an instant pipeline to put its technology to work building new homes, Ahmad said. To date, the company 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 workforce of 70 people by the end of 2022 and ramp up construction of homes as part of its pipeline of more than $500 million residential development projects. Specifically, it is actively recruiting for engineering, product, back office, construction, and project management positions. He is also looking to expand outside of his home state of Arizona by the end of next year.
Jason Freedman, Partner at Peak State Ventures, believes that the biggest innovation in the industry until recently was moving construction off-site and standardizing it.
“But that doesn’t serve the remaining 99.99% of homes that are still customized for the buyer and built on site,” he wrote via email. “Nobody found a way to change that equation until September. [Kamvar] and Salman started Mosaic, and the magic of why Mosaic works is that they care as much about why people work together as they care about the homes that get built.
Mosaic’s efforts to focus on artisans or contractors is actually something Ahmad is proud of, especially as labor shortages rage.
“We believe business partners are the industry’s most valuable resource and a big part of Mosaic’s focus has been on developing technologies and tools to truly enable our business partners to be successful and empowered. to rely on Mosaic as a trusted and preferred building partner,” he said. “It is becoming increasingly clear to us that maximizing the efficiency of the valuable business resources at our disposal is paramount not only for our success as a business, but also for the success of the industry and to solve some of the broader housing crises that exist across the country. .”