Modular construction has proven to be innovative, cost effective, and efficient, eliminating delays and costs due to weather or other natural circumstances. It is also environmentally-friendly, and produces less waste (most products are recycled in the factory).
The modular construction market is expected to grow significantly in the next ten years. Builders are trying to find more efficient ways to complete projects, to save as much time and money as possible. Traditional building methods are becoming increasingly expensive due to the rise in prices of cement and bricks.
In addition to the US, modular construction is very popular in Europe and Asia. The construction market in the US alone is just above a trillion dollars – the global construction market is ten trillion.
Investors have been active in this space. Recent capital raises include Katerra’s $865 million from SoftBank in January of this year and Emagispace’s $5 million raise from Alpha Edison in May 2018.
Castle Placement believes this technology will continue to disrupt the construction business and is currently raising capital for Cogent Modular, manufacturer of modular hotels, mixed-used developments, and luxury multi-family homes. Castle plans to launch capital raises for two more modular construction companies this month.
About Castle Placement: Founded in 2009, Castle Placement raises equity and debt capital for private middle market companies across a broad spectrum of industries. Highly experienced investment bankers and a robust, data-driven, innovative technology platform – including artificial intelligence/machine learning – match great companies with global institutional investors. Castle Placement’s proprietary app, CPGO, connects companies with investors in real time. It has over 64,500 private equity, venture capital and strategic investors, family offices, pension funds, foundations, endowments, sovereign wealth funds, hedge funds and lenders.