Trying to be an Innovator, Disruptor and Leader of an entire industry is not easy and $200M in new funding, which comes on top of $2 billion already invested, allows construction startup, Katerra, to avoid bankruptcy.
SoftBank Group Corp. has agreed to invest $200 million more to bail out Katerra, a construction startup that ran into financial problems as it tried to shake up the building industry.
Mariotti Building Products
PFS Corporation
Viking CarrierKaterra’s shareholders on Wednesday voted to approve the new investment on top of the roughly $2 billion SoftBank has already invested. Under the plan, the Japanese investment firm’s stake in Katerra will grow to give it a majority stake, while other investors will see their stakes severely diluted, according to people familiar with the matter.
SoftBank’s new investment will enable Katerra to avoid having to seek bankruptcy protection, according to Katerra’s chief executive, Paal Kibsgaard. The company needed SoftBank’s latest investment “to continue as a going concern,” he said in a notice to shareholders about Wednesday’s meeting.
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2 Responses
There are 9 barriers to innovation for construction contractors. We have documented them. They are unforgiving. We do not pretend to know the circumstances however, this is the second riskiest business in the US with hyper-competition amoung other barriers.
The wall just moved out a little, it didn't go away. Moving chairs, throwing money at a bloated hierarchy is just smoke and mirrors.
Katerra's culture and arrogance is the issue, not the industry. Look at Entekra for how to innovate, not disrupt the industry.