Katerra started with a hefty goal: to revolutionize the $12 trillion global construction industry. Founded in 2015, the company received $1 billion in funding from SoftBank and was once valued at $4 billion, according to TheRealDeal. Katerra told employees this week that it would shut down, resulting in thousands of jobs lost, potentially without severance packages, and walking away from construction jobs. The company had publicly struggled meeting its promises and value. It laid off hundreds of employees last year and neared bankruptcy.
The company also faced an investigation into its accounting practices by the Securities and Exchange Commission and by its board of directors, according to The Information.
Last year, the company was reportedly exploring the possibility of Chapter 11 bankruptcy proceedings, until it was bailed out by a $200 million cash infusion from SoftBank. That round of funding gave another SoftBank-backed company, Greensill Capital, a 5 percent stake in the company in exchange for erasing more than $400 million in debt. Greensill also collapsed earlier this year.
Katerra’s founder Michael Marks and CEO left the company last May. Paal Kibsgaard, the company’s most recent chief executive, departed last month.
The company has 2,434 employees, according to its LinkedIn page. A spokesperson for Katerra did not immediately respond to a request for comment. SoftBank also did not return a request for comment.
Advertisement
Related Stories
Trade Contractors
Skilled Trades Are Open to Technology, Survey Finds
Amidst the ongoing labor shortage, technology and digital tools can offer labor-saving gains, and the skilled trades are willing to embrace new tech in their jobs
Building Technology
How This Luxury Custom Home Builder Wins Business with AI and Innovation
How AI is helping custom home builders differentiate and win more business through exceptional customer experience and more efficient workflows.
Building Technology
Putting AI at the Center of Home Building
Even though my wife and I worked with a top-notch, reputable custom home builder, building our first custom home turned out to be more challenging…