BlackRock Invests in 3D-Printing Construction Startup Valued at $1.4B
Icon, an Austin-based company specializing in 3D-printed real estate, has reached a $1.4B valuation following its latest funding round, led by a giant of Wall Street.
The U.S. faces a housing shortage of as many as 4.7 million homes, according to some estimates.
BlackRock and Scotland-based investment firm Baillie Gifford co-led a $200M Series D funding round for Icon, according to a release. This brings the company’s total funding to $700M at a $1.4B valuation, as reported by CNBC.
"We were really looking for an investor group who had helped built-world, physical companies move from early startup proof points to scale," said Jason Ballard, co-founder and CEO of Icon.
The new funding follows Icon’s reveal of a multistory, robotic 3D construction system named Titan, which launched commercially in March. It represents a significant leap in the company’s capabilities, with its previous models only able to build single-story structures.
The rising costs of homebuilding, driven by increasing interest rates, land prices, labor, and materials, provide a context for this investment. Meanwhile, U.S. housing supply continues to lag, with a gap of up to 4.7 million homes, as per a July report from Zillow.
Icon claims Titan can cut the average time to build a home by six weeks, reduce the number of workers needed, and lower overall costs by 40%.
With this funding, Icon plans to expand Titan and its footprint in Texas, Florida, and Washington, D.C., and enter new markets.