Mighty Buildings, a startup specializing in prefabricated and environmentally-friendly homes, has announced that it has secured $52 million in funding in a round co-led by Waed Ventures and Bold Capital, with participation from Khosla Ventures. This latest investment brings the startup’s total funding to $150 million. CEO Scott Gebicke stated that these funds will support Mighty Buildings’ expansion in North America and the Middle East, especially in Saudi Arabia, and aid in the launch of the company’s next-generation modular homebuilding kit.
Gebicke noted, “The pandemic exacerbated the housing shortage in the US and other countries due to project interruptions and a permanent departure of construction workers from the industry. Recent interest rate increases, expected to reduce housing demand, have had the opposite effect, driving more demand for newly constructed homes as the secondary market for used houses declined.”
Founded in 2017 by Slava Solonitsyn, Dmitry Starodubtsev, Sam Ruben, and Alexey Dubov, Mighty Buildings aimed to leverage 3D printing technology to automate the construction industry, specifically in home construction. Gebicke, a former naval officer and McKinsey project lead, was appointed CEO in December.
3D-printed prefab homes have become increasingly popular due to fluctuating construction material and labor costs, offering an affordable alternative to traditional home building. The US faces a shortage of 650,000 construction workers, and materials like electrical conduit, steel, and concrete have seen significant cost increases since 2020.
3D-printed homes promise cost savings of at least 35% according to a 2018 study, and they can be constructed in as little as a month, compared to the six to eight months required for a typical house.
Mighty Buildings primarily provides prefabricated kits of parts to developers for constructing residential structures. Initially, the company sold prefab homes directly to customers, but it has shifted to selling entire communities of homes to developers in recent years.
The company claims that its proprietary printed material, composed of 60% recycled glass, is five times stronger than concrete, 70% lighter, and has lower carbon emissions during manufacturing. It is also wind-resistant, compliant with the California Building Code, and offers customization options while minimizing waste.
Mighty Buildings utilizes ultraviolet light for material curing, allowing for unique shapes and customization while reducing waste. Gebicke added, “Our factory-based advanced manufacturing techniques ensure automotive-grade quality control and can be scaled up rapidly with relatively low capital expenditure.”
While 3D-printed prefab homes may not suit everyone due to the newness of the technology and limited design options, the growing housing shortage is fueling the 3D-printed construction market, estimated to be worth $47.95 billion by 2030, according to Straits Research.
Mighty Buildings has seen its customer base grow, with revenue reaching around $5 million in 2022. Gebicke predicts that the company’s pipeline of projects in the US, Caribbean, and Middle East could be worth hundreds of millions in the coming years.
Despite strong competition in the 3D-printed construction sector, including players like Icon, Peri 3D, CyBe, Alquist 3D, Printed Farms, and Nidus 3D, Gebicke believes that Mighty Buildings is well-positioned to work with major developers to address the global housing shortage efficiently and at scale.
