Mighty Buildings is a visionary startup dedicated to eco-friendly prefab homes constructed with 3D printing technology, has raised an impressive $52 million in a recent funding round co-led by Waed Ventures and Bold Capital, featuring participation from Khosla Ventures.
This latest infusion of capital, according to insider sources, values the startup between $300 million and $350 million, cementing its stature in the industry. With this funding, Mighty Buildings has now amassed a grand total of $150 million, setting the stage for its ambitious expansion plans across North America and the Middle East, with a particular focus on Saudi Arabia. Additionally, these funds will support the launch of their next-generation modular homebuilding kit.
Scott Gebicke, the CEO of Mighty Buildings, emphasized the impact of the pandemic on housing shortages, noted the pandemic aggravated the housing shortage in the U.S. and other countries, as projects needed to be paused and construction workers permanently left the industry.
The ongoing interest rate hikes, which were initially anticipated to reduce housing demand, have paradoxically fueled it further. Gebicke has also pointed out that the recent interest rate increases, which were expected to cool housing demand, have had the opposite effect, as the secondary market for used houses plummeted, driving ever more demand for newly built homes.
Mighty Buildings, founded in 2017 by Slava Solonitsyn, Dmitry Starodubtsev, Sam Ruben, and Alexey Dubov, and is on a mission to revolutionize the construction industry by harnessing the power of 3D printing. This innovative approach addresses the ongoing challenges posed by fluctuating construction materials and labor costs, making affordable alternatives to traditional home building a necessity.
The construction industry in the U.S. currently faces a shortage of 650,000 workers, while material costs, including electrical conduit, steel, and concrete, have seen substantial increases since 2020. 3D-printed homes are emerging as an economically efficient and speedy solution, potentially reducing costs by at least 35%. Notably, constructing a 3D-printed home can take as little as one month, significantly less than the six to eight months required for traditional homes.
3D-printed homes are gaining traction globally, with charitable organizations like Habitat for Humanity initiating projects to print homes for families. Entire neighborhoods of 3D-printed homes, albeit compact ones, have started to materialize.
Mighty Buildings primarily competes against traditional building methodologies such as stick-built single-family homes in the U.S. and concrete precast structures in the Middle East. Gebicke emphasized the urgency of building more homes, faster, to address supply shortages worldwide.
Mighty Buildings offers prefabricated kits to developers, enabling them to construct residential structures with ease. The startup’s proprietary printed material, consisting of 60% recycled glass, boasts five times the strength of concrete, is 70% lighter, and emits fewer carbon emissions during manufacturing. It is also designed to withstand winds of up to 150 miles per hour, adhering to the stringent California Building Code standards.
Mighty Buildings employs ultraviolet light for off-site material curing, enabling the creation of unique and highly refined shapes while minimizing waste. This precise and customizable approach is complemented by automotive-grade quality control in its factory-based advanced manufacturing.
Despite the many advantages of 3D-printed prefab homes, they may not suit everyone’s preferences, given the novelty of the technology. However, as the housing shortage intensifies, the 3D-printed construction market is poised for significant growth, estimated to reach $47.95 million by 2030 according to Straits Research.
Mighty Buildings is witnessing a surge in its customer base, with revenues hitting around $5 million in 2022. The startup has a robust pipeline of projects in the U.S., Caribbean, and the Middle East, potentially worth hundreds of millions in the coming years.
While competition in the 3D-printed construction sector is fierce, with players like Icon, Peri 3D, CyBe, Alquist 3D, Printed Farms, and Nidus 3D, Mighty Buildings is confident in its position of strength. Gebicke also affirmed that the company is now working with some of the largest developers in the U.S. and in the Middle East to build out a very large number of new homes very quickly in order to address the global housing shortage.
Keep an eye on Mighty Buildings as they expand their home building projects around the US & world as they seek to continually address the housing shortage for folks around the world.