Tech giants Facebook and Google are downloading their checkbooks to support the launch of modular housing.
Factory_OS, which aims to build apartments more efficiently and for less money, announced the B-Series on Friday. The $ 55 million round was led by Lafayette Square Holdings with Autodesk, Citi and Morgan Stanley, along with Facebook and Google.
Vallejo, California-based Factory_OS was founded in 2017 by general contractor Larry Pace and Rick Holliday, a developer of affordable housing in San Francisco. According to Crunchbase, the startup previously earned $ 22.7 million.
Factory_OS aims to build houses “more like cars”, as the press release states, which means that the different components of each are pre-assembled at the same time. The company says it can reduce construction costs by 20 to 40 percent by assembling everything outside the plant.
With the new capital, the startup aims to “accelerate the growth” of its technology, the press release said, as well as boost production at the 100,000-square-foot facility currently under construction on Mare Island in the Bay Area. It is also trying to expand to Los Angeles, according to the San Francisco Chronicle, which announced the news for the first time.
Factory_OS plans revenue of $ 80 million this year, with $ 150 million expected in 2021. “Demand for what we’re doing is rising,” Holliday told the North Bay Business Journal in November.
The company has built more than 1,000 units with several projects in progress, including a 250-bedroom apartment for Google employees near the technology giant’s Mountain View office.
Google, Facebook and Apple have pledged billions of dollars to solve the problem of affordable housing in California. Google said it planned to invest $ 1 billion, and entered into a partnership with Lendlease to propose to build communities planned in Silicon Valley.
Last year, Apple announced a $ 2.5 billion housing plan, including $ 1 billion to help home buyers get mortgages.