Katerra
{{Short description|American technology company 2015-2022}}
{{Infobox company
| name = Katerra
| logo = Katerra Primary Logo.jpg
| logo_size =
| type = Private
| caption =
| fate =
| successor =
| foundation = 2015
| defunct =
| location = Menlo Park, California, United States
| industry = Construction
| key_people = {{Unbulleted list|Paal Kibsgaard (CEO)}}
| products =
| num_employees = 7,500 (2018){{cite web|url=https://www.forbes.com/sites/bizcarson/2018/01/24/katerra-construction-startup-softbank-fundraise/|title=SoftBank Leads $865M Investment In Katerra, Which Aims To Upend The Construction Industry|first=Biz|last=Carson|website=Forbes|publisher=|accessdate=20 March 2018}}
| revenue = Bankrupt (Under Liquidation){{deadlink|date=September 2022}}[https://www.katerra.com/2019/12/09/end-of-year-update/ Dead link]
| parent =
| subsid =
| website = {{url|Katerra.com}}
}}
Katerra was an American technology-driven off-site construction company. It was founded in 2015 by Michael Marks, former CEO of Flextronics and former Tesla interim CEO, along with Fritz Wolff, the executive chairman of The Wolff Co.{{cite web|url=https://www.cnbc.com/2018/01/24/katerra-raises-865-million-from-softbank-vision-fund.html|title=SoftBank pours $865 million into Katerra, a start-up making buildings in a factory|first=Lora|last=Kolodny|website=CNBC|date=24 January 2018|publisher=|accessdate=20 March 2018}} Katerra was listed on LinkedIn's "Top Startup Companies" to work for in 2017.{{cite web|url=https://www.linkedin.com/pulse/linkedin-top-companies-startups-50-industry-disruptors-daniel-roth|title=LinkedIn Top Companies {{!}} Startups: The 50 industry disruptors you need to know now|first=Daniel|last=Roth|date=November 1, 2017|website=LinkedIn}}
In May 2020, it was announced that as a part of an additional $200 million raise, COO and former Schlumberger CEO Paal Kibsgaard would take over from Michael Marks as CEO of Katerra in June. Some of its independent assets in other regions, including the Middle East would continue to exist as independent entity.{{cite web|url=https://www.katerra.com/2020/05/19/paal-kibsgaard-named-ceo-of-katerra/|title=Paal Kibsgaard named CEO|date=May 2020}} In June 2021, Katerra announced plans to shut down, laying off remaining employees without paying out earned personal time off or severance.{{Cite web|title=SoftBank-Backed Katerra to Shut Down|url=https://www.theinformation.com/articles/softbank-backed-katerra-to-shut-down|access-date=2021-06-01|website=The Information}}
History
The company was founded in 2015. In January 2018, Katerra took an $835 million investment from Softbank. The investment was made from the Vision Fund.
The company manufactured large building components off-site, particularly for multi-family housing. For example, the company would fabricate an entire wall (including windows) off-site for final assembly on site at a construction project. The technique allowed lower cost and the company claimed higher-quality finishes.
Katerra was known for its use of mass timber construction and its manufacture of mass timber products such as glued laminated timber and cross-laminated timber.{{cite web|url=https://www.constructiondive.com/news/katerra-plans-major-us-factory-expansion/518616/|title=Katerra plans major US factory expansion|publisher=|accessdate=20 March 2018}}{{cite web|url=https://www.woodworkingnetwork.com/news/woodworking-industry-news/washington-state-wil-revise-building-codes-okay-mass-timber|title=Mass timber construction okayed for Washington State building codes|first=Bill|last=Esler|date=19 March 2018|website=Woodworking Network|accessdate=20 March 2018}} In support of this specialty, Katerra purchased MGA in 2018, the leading architectural firm in the field of tall wood buildings and mass timber construction.{{cite news |last1=Kitai |first1=David |title=A Silicon Valley Company Just Bought One of Vancouver's Most Esteemed Architecture Firms |url=http://vanmag.com/city/business/katerra-acquires-michael-green-architecture-affordable-housing/ |accessdate=31 May 2018 |work=Vancouver Magazine |date=30 May 2018}} In many of its projects, the company served as an off-site manufacturer, architect, and on-site contractor.{{cite news|url=https://www.treehugger.com/green-architecture/katerra-build-giant-new-clt-factory-spokane-washington.html|title=Katerra to build giant new CLT factory in Spokane, Washington|newspaper=Treehugger |publisher=|accessdate=20 March 2018}} It generally contracted directly with owners.{{cite web|url=https://www.constructiondive.com/news/construction-tech-offsite-startup-katerra-raises-130m/440681/|title=Construction tech, offsite startup Katerra raises $130M|publisher=|accessdate=20 March 2018}}
Katerra used SAP HANA for real-time data and Building Information Modeling (BIM) software such as Revit for building design.[https://www.treehugger.com/will-katerra-disrupt-construction-industry-perhaps-weve-seen-movie-4856518]
The company had projects ongoing in several states; as of the end of 2018 it had 700 projects underway and many in backlog. It had plans to build up to 14 distribution centers across the country.{{cite web|url=http://www.prosalesmagazine.com/news/industry-trends/your-next-big-competitor-get-to-know-katerra_o|title=Your Next Big Competitor? Get to Know Katerra}}
In December 2019, Katerra reported the company plans to lay off approximately 200 of the workforce and close their factory in Phoenix, Arizona. The manufacturing was moved to Tracy, California, where the costs were lower and the factory was highly automated.{{cite news |last=Joyner |first=Sean |url=https://archinect.com/news/article/150174575/modular-construction-startup-katerra-cuts-200-jobs-to-embrace-automation |title=Modular construction startup Katerra cuts 200 jobs to embrace automation |work=Archinect |date=2019-12-13 |access-date=2020-01-08 }}
In June 2021 Katerra filed for bankruptcy, blaming the COVID-19 pandemic as well as an inability to raise new capital following the collapse of its lender, Greensill Capital.{{Cite web |date=2022-05-18 |title=After Katerra: How digital construction is developing in the US |url=https://www.globalconstructionreview.com/after-katerra-how-digital-construction-is-developing-in-the-us/ |access-date=2022-06-07 |website=Global Construction Review |language=en-GB}} Softbank's Vision Fund had reportedly invested more than $2 billion in Katerra in total, including a bailout in December 2020.{{cite news|last1=Kruppa|first1=Miles|last2=Massoudi|first2=Arash|url=https://www.ft.com/content/a70b6130-b062-4850-8759-4a10a5a26f3d|title=SoftBank-backed Katerra files for bankruptcy|work=Financial Times|date=2021-06-07}}
See also
WeWork – American coworking provider with similar investments from SoftBank
References
{{Reflist}}
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Category:Construction and civil engineering companies of the United States
Category:Technology companies established in 2015
Category:Companies based in Menlo Park, California
Category:Defunct Softbank portfolio companies
Category:American companies established in 2015
Category:Construction and civil engineering companies established in 2015