Cover, a Los Angeles-based startup that builds custom homes for financially struggling renters and parents, has raised $ 60 million to expand.
Gigafund led Series B with participation from Valor Equity Partners and Founders Fund – Elon Musk’s early investors in SpaceX and Tesla – and homebuilder Lennar, among others.
The increase brings the startup’s total funding to $ 75 million. The company was launched in 2017 and completed a $ 10 million Series A in early 2020, led by Founders Fund and Lennar.
Building modular and tiny homes is a crowded field, but co-founder and CEO Alexis Rivas said two things set Cover apart. One is vertical integration: it handles all aspects of creating accessory housing units, also known as granny apartments, from start to finish. And it doesn’t use some “conventional” methods, such as drywall and 2 Ã 4 timber construction.
Using proprietary software, Cover designs, designs, licenses and builds turnkey ADUs as well as detached home offices. The company manufactures components off-site, then moves and installs them without a crane in as little as 30 days. Offers range from $ 200,000 for a studio to $ 335,000 for a two-bedroom unit.
Demand for ADU has been “crazy” for the past year and a half, Rivas said in an interview. âWe have a huge backlog for next year,â he said.
Supply chain issues and labor shortages plaguing businesses around the world are not the reason, he said, while acknowledging that it was difficult to fill positions. highly skilled. The coverage was simply not large enough to cope with the increased demand.
So far, the company has delivered 20 homes in Los Angeles. It has doubled production and cut delivery times by a factor of four over the past year, Rivas said.
The company plans to expand construction locally before expanding nationwide, and is hiring “across a wide range of roles,” the CEO added.
âThe talent market is tight, we have a high bar and we need to develop our team,â he said. âRecruiting the best software, mechanical and manufacturing engineers is a major priority and challenge. “