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  • December 2021 (Revised December 2021)
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Katerra (A)

By: Lindsay N. Hyde, Thomas R. Eisenmann and Tom Quinn
  • Format:Print
  • | Language:English
  • | Pages:15
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Abstract

In April 2020, Katerra executives struggled with a series of decisions that would determine the fate of one of the best-funded construction startups in history. Katerra was founded in 2015 by technology-industry executive Michael Marks and commercial real estate developer Fritz Wolff to “redefine the construction industry.” Over the next four years, Katerra raised $2.5B in venture capital investment and grew to 7,500 employees. Focused on creating a fully integrated commercial real estate development process, Katerra built and operated factories manufacturing building components ranging from pre-fabricated wood panels to windows, acquired architecture and general contracting firms globally, and developed a series of proprietary software systems to design and manage construction projects. Management touted a project pipeline filled with eager commercial real estate developers and multifamily housing projects, but actual revenue was lacking. Katerra would soon run out of money without additional investment. Customer complaints about Katerra’s ability to deliver on promised time and cost savings, coupled with the departure of one of the company’s co-founders, call into question the company’s strategy and Marks’ leadership. Investors must decide whether the company’s vision is salvageable, and if so, what steps they should take to construct a pathway to profitability.

Keywords

Business Startups; Insolvency and Bankruptcy; Entrepreneurship; Failure; Construction; Real Estate Industry; Technology Industry; United States

Citation

Hyde, Lindsay N., Thomas R. Eisenmann, and Tom Quinn. "Katerra (A)." Harvard Business School Case 822-021, December 2021. (Revised December 2021.)
  • Educators

About The Authors

Lindsay N. Hyde

Entrepreneurial Management
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Thomas R. Eisenmann

Entrepreneurial Management
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Related Work

    • December 2021 (Revised December 2021)
    • Faculty Research

    Katerra (B)

    By: Lindsay N. Hyde, Thomas R. Eisenmann and Tom Quinn
    • December 2021 (Revised December 2021)
    • Faculty Research

    Katerra (A)

    By: Lindsay N. Hyde, Thomas R. Eisenmann and Tom Quinn
Related Work
  • Katerra (B) By: Lindsay N. Hyde, Thomas R. Eisenmann and Tom Quinn
  • Katerra (A) By: Lindsay N. Hyde, Thomas R. Eisenmann and Tom Quinn
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