Higharc – a connected cloud platform for homebuilding operations – announced a $53 million Series B funding round powered by over 18 industry leaders from construction, building products, manufacturing, and distribution. Previous investors Javelin Venture Partners, Lux Capital, and Vertex Ventures also joined the round. Spark Capital and Pillar VC led the round, with participation from SE Ventures (Schneider Electric’s Venture Arm), Fifth Wall, Starwood Capital, Standard Investments, Home Depot, Ferguson, Simpson Strong-Tie, Mulhern+Kulp Engineering, Suffolk Technologies, RXR Realty, PSP Growth, Metaprop, SC Masterfund, Carl Bass (former Autodesk CEO) along with leaders from Mighty Buildings, Welcome Homes, CBRE, and Ware Malcomb. The funding will support Higharc’s growth and expand its automated materials estimating and generative AI-based workflows.
The new funding round follows the company’s rapid growth and customer demand last year as it has emerged as the next-generation cloud software leader in the $350 billion US homebuilding industry.
Adopting Higharc’s generative design technology helped builders bring new homes and communities for marketing faster than ever last year, eliminating 90 days from the design cycle for new communities (a 75% reduction) while decreasing soft cycle time by 33%. Over one million homes are built annually in the U.S., but we still have a housing shortage of five million homes. Builders often struggle to improve operational efficiency because they are stuck with old, siloed software solutions and inadequate data. These results are time-intensive manual processes, a whack-a-mole approach to changes, constant rework, and poor customer experiences.
Higharc’s Homebuilding Cloud replaces the pen-and-paper processes and software solutions that dominate the industry. And homebuilders get everything they need to design, estimate, sell, and build homes in one place. This lets departments stay connected and in sync with accurate data while moving much faster. And whenever a plan changes, every department gets updated automatically with new 3D sales experiences, materials takeoffs, and construction documents — drastically reducing cycle time and costly rework.
This funding round brings Higharc’s total capital raised since 2018 to $78.7 million, positioning the company to continue delivering on its mission to help build better and more affordable homes through technology.
KEY QUOTES:
“Higharc exists to serve the hardworking teams who build homes across America–they’ve been stuck using 40-year-old software that wasn’t designed with their needs in mind, and they deserve better. This additional capital reinforces Higharc’s long-term commitment to the success of our customers and to unlocking digital transformation for the entire homebuilding industry.”
- Marc Minor, CEO of Higharc
“Higharc is truly the ‘best in class’ way to draft new home designs and to guide potential buyers through the overwhelming personalization process prior to sale. We’re now more responsive than ever.”
- Paul Hanson, President of Franchising at Epcon Communities and current Higharc customer
“Higharc is modernizing a large, foundational industry that’s traditionally been tough to change with technology. By bringing together builders, manufacturers, and buyers, Higharc’s transformative technology is rewriting the rules of the design-to-construction process. This technology is fundamentally improving how we build homes in this country for generations to come.”
- Alex Finkelstein, Co-founder and General Partner at Spark Capital
“Higharc’s technology is second-to-none in the homebuilding space, offering a system that expedites the design-to-construction process and adds value to all stakeholders. In collaboration with Schneider Electric, SE Ventures is excited to help bring market insight and drive commercial deployment with homebuilders globally.”
- Brad Jones, Principal at SE Ventures
“I’ve rarely seen such a talented team come together around such a powerful shared vision. They cracked the code on how software can help builders move from concept to construction with a smart and precise tool, which means owners get exactly what they want, and the job is both faster and cheaper. Everybody wins.”
- Russ Wilcox, Partner at Pillar VC
