Mosaic Raises $44M to Revolutionize Construction Planning

Mosaic Building Group Secures $44 Million in Series B Funding

Mosaic Building Group, a construction technology startup headquartered in Phoenix, Arizona, has successfully completed a $44 million Series B funding round. The investment was spearheaded by Peak State Ventures.

New and Existing Investors Participate

Several new investors contributed to this funding round, including Starwood Capital, invisionAZ, Tekfen Ventures, and Brightstone. They were joined by existing investors such as Andreessen Horowitz (a16z), Building Ventures, Innovation Endeavors, 8VC, and Founders Fund. This brings the company’s total funding to $68.75 million since its establishment in 2015.

A Tech-Enabled General Contractor

Mosaic functions as a technology-driven general contractor specializing in large-scale residential development projects. The company’s core mission is to streamline construction infrastructure, allowing real estate developers to concentrate on crucial areas like land acquisition, sales, marketing, and architectural design.

Scalability Through Automation

The startup’s approach centers on automating the construction planning process. Its software is engineered to accelerate build times, minimize costs, reduce material waste, and enhance the overall quality of construction for homebuilders. Essentially, Mosaic digitizes conventional construction blueprints and determines the most efficient method for onsite home construction, utilizing existing materials, labor, and procedures.

CEO on Integrated Operations

According to Salman Ahmad, co-founder and CEO of Mosaic, the company is focused on integrating its construction operations with its technology platform. He explains that, rather than developing software for isolated solutions, Mosaic aims to provide a comprehensive service similar to Amazon Web Services (AWS) for tech startups, enabling home builders and developers to outsource their construction operations and prioritize core business functions.

Strategic Partnership and Project Pipeline

Mosaic has adopted a distinctive strategy by partnering with Mandalay Homes, a home builder. This collaboration has created an immediate opportunity to implement and refine its technology in real-world home construction projects, as noted by Ahmad. To date, the company has successfully completed 160 homes and currently has 195 under construction, with plans to build an additional 400 homes over the next two years.

Expansion and Hiring Plans

The company intends to double its current workforce of 70 employees by the end of 2022. This expansion will focus on accelerating home construction within its existing pipeline of residential development projects, valued at over $500 million. Specifically, Mosaic is actively recruiting for positions in engineering, product development, back-office operations, construction, and project management. Furthermore, the company plans to extend its operations beyond Arizona by the end of the following year.

Innovation in Onsite Construction

Jason Freedman, a partner at Peak State Ventures, observes that recent innovation in the construction sector has largely focused on offsite construction and standardization.

Addressing the Customization Challenge

“However, this approach doesn’t cater to the vast majority of homes that are still customized to individual buyer preferences and built on location,” he stated via email. “Until Sep [Kamvar] and Salman founded Mosaic, no one had successfully addressed this challenge. The key to Mosaic’s success lies in its equal dedication to both the quality of the homes built and the collaborative relationships with the people who build them.”

Focus on Trade Partners

Ahmad emphasizes Mosaic’s commitment to supporting tradespeople, or subcontractors, particularly in light of ongoing labor shortages.

Prioritizing Trade Partner Success

“We firmly believe that trade partners represent the industry’s most valuable asset,” he stated. “A significant portion of Mosaic’s efforts has been dedicated to developing technologies and tools that empower our trade partners to thrive and view Mosaic as a reliable and preferred construction partner. It is increasingly clear that maximizing the efficiency of our skilled trade workforce is crucial not only for our business success but also for the overall health of the industry and for addressing the widespread housing challenges facing the nation.”