Katerra
| Company type | Private |
|---|---|
| Industry | Construction, Technology |
| Founded | 2015 |
| Founder | Michael Marks, Fritz Wolff |
| Defunct | June 2021 |
| Fate | Bankruptcy and closure |
| Headquarters | Menlo Park, California , United States |
Key people | Michael Marks (Founder, former CEO), Paal Kibsgaard (CEO from 2020) |
| Products | Off-site building elements, mass timber technologies (glued laminated timber, cross-laminated timber) |
Number of employees | ~700 (2018) |
Katerra was a U.S.-based construction firm emphasizing technology and off-site building methods, established in 2015 by Michael Marks, who previously served as CEO of Flextronics and interim CEO at Tesla, Inc., together with Fritz Wolff, the executive chairman of The Wolff Co. In 2017, LinkedIn included Katerra in its list of "Top Startup Companies."
After securing $200 million in funding in May 2020, Katerra appointed former Schlumberger CEO Paal Kibsgaard as its new chief executive, succeeding Marks. Certain independent regional operations, such as those located in the Middle East, continued to function autonomously. Nevertheless, by June 2021, Katerra declared its closure and dismissed its remaining workforce without providing severance or compensation for accrued leave.
History
Established in 2015, Katerra attracted an $835 million investment from SoftBank's Vision Fund by January 2018. The company focused on off-site fabrication of large-scale building elements, especially targeting multi-family residential projects by manufacturing complete wall sections inclusive of windows for assembly at construction sites. This strategy was designed to lower expenses while enhancing quality standards.
Katerra gained recognition for employing mass timber technologies, producing materials like glued laminated timber and cross-laminated timber. To reinforce this specialization, it acquired Michael Green Architecture (MGA) in 2018, a prominent firm renowned for expertise in tall wood structures and mass timber design. Often functioning simultaneously as manufacturer, architect, and general contractor, Katerra usually engaged directly with project owners through contracts.
The enterprise implemented SAP HANA to manage data in real time and utilized Building Information Modeling (BIM) software such as Revit for design purposes. By the close of 2018, Katerra managed approximately 700 active projects across the United States and intended to open up to 14 distribution hubs nationwide.
In December 2019, the company laid off roughly 200 employees and shut down its Phoenix manufacturing plant, transferring production to a more automated facility located in Tracy, California to achieve cost savings.
Confronted with financial strain worsened by the COVID-19 pandemic alongside the downfall of its financier Greensill Capital, Katerra filed for bankruptcy protection in June 2021. SoftBank's Vision Fund had invested over $2 billion cumulatively, including a rescue injection in December 2020.
See also
WeWork – U.S. coworking space provider with similar SoftBank backing