CPE News (11/9/2020) – Falkbuilt has closed a $20 million Series A financing led by RET Ventures with $14 million disbursement at closing and the remainder to be disbursed based on subsequent operational milestones.
Borden Ladner Gervais LLP acted as legal counsel to Falkbuilt.
Founded by Mogens Smed and Barrie Loberg in 2018, Falkbuilt is a manufacturer of digital construction components and developer of software bringing efficiencies to design, manufacturing and construction.
Falkbuilt has previously raised over $23 million from private investors.
photo credit: Falkbuilt
Falkbuilt takes interior construction to the next level with $20 million CAD in financing
Calgary, Canada, November 9, 2020 — Falkbuilt, a manufacturer of digital construction components and developer of software bringing efficiencies to design, manufacturing and construction, today announced it has raised up to $20 million CAD ($15.3 million USD) in Series A financing led by RET Ventures, a real estate technology-focused venture capital firm. The round has closed with $14 million CAD funded, with the remainder to be based on subsequent operational milestones.
Founded by interior construction veterans Mogens Smed and Barrie Loberg in 2019, Falkbuilt manufactures digital components that are bringing much-needed speed, efficiency and sustainability to the industry. Echo is using machine learning and big data to exponentially empower industry-standard software in the cloud.
“This financing is validation of our vision and our revolutionary approach to interior construction,” says Mogens Smed, CEO of Falkbuilt. “We are excited to move to the next level and grow our market share. I want to thank RET Ventures for having absolute confidence in our vision and sharing our insight that the interior construction industry is ready for this digital revolution. A surge of demand is coming and now we’re ready to meet it.”
Falkbuilt, which serves commercial, healthcare, retail, industrial and education markets, has seen incredible global market response. Its process, called Digital Component Construction, precision cuts prefabricated components—super studs, digital horizontals and cladding—in the factory and ships them to job sites for a faster, cleaner and far more efficient installation. General contractors, architects and designers are embracing the process, which emulates the stick build of conventional construction, but without the waste and long construction schedules.
Echo exponentially empowers industry standard software in the cloud, creating untold efficiencies in the design, manufacturing and construction processes. It collects and manages all project information and feeds the appropriate data to the appropriate industry standard software, providing a much-needed technology solution for the global conventional construction industry.
Since its founding last year, Falkbuilt has established a robust distribution network of more than 70 independently owned Branches across North America, India and the Middle East, that have completed hundreds of successful installations.
As the construction industry adjusts to coronavirus best practices, the benefits of Falkbuilt’s prefab solutions have become particularly pronounced. Digital Component Construction requires fewer trades on site, meeting new distancing guidelines and making scheduling easier. Further, unlike porous drywall, the walls are easily cleaned with industrial strength disinfectants.
“The construction space is among the areas of real estate best positioned to benefit from innovative technologies and processes, and we are excited to lead this Series A financing as our first investment in the construction tech space,” said Christopher Yip, partner at RET Ventures. “Falkbuilt’s leadership team has an incredible track record in the interior construction market, and the company’s pre-fabricated solutions and Echo software deliver significant value to stakeholders across architecture, design and construction. With the tremendous efficiencies it delivers and a rapidly growing domestic and international client base, Falkbuilt is poised for success. We are eager to help accelerate Falkbuilt’s growth in the near-term and to begin exploring the potential the technology has for multifamily buildings in the future.”
Falkbuilt was advised by Everlast Capital Partners and Escape Velocity Advisers.
About Falkbuilt + Echo:
Falkbuilt combines proven interior construction methods with next-gen technology to build high performing and cost-effective environments. Employing powerful technology, Falkbuilt precision manufactures digital components in the factory and delivers them onsite for fast, efficient and clean installs. Falkbuilt is headquartered in Calgary, Canada and distributes its prefab solutions through 70+ factory-direct Branches across North America, the Middle East and India. Echo is cloud-based software that employs deep learning and big data to exponentially empower industry standard software to streamline design, manufacturing and construction processes. Falkbuilt is Echo’s first user.
About RET Ventures:
A leading real estate technology investment firm, RET Ventures is the first industry-backed early stage venture fund to strategically focus on helping build cutting-edge “rent tech” — technology for multifamily and single-family rental real estate. RET’s base of Strategic Investors includes some of the largest REITs and private real estate owner-operators and managers, who control approximately 2 million apartment units. Through its deep expertise and connections within the industry, RET has created a unique real estate innovation ecosystem that delivers significant value to the companies it backs, providing them with access to thought leaders, development partners and ongoing guidance. For more information, please visit www.ret.vc.