ICON raises $185 million in Tiger-led round to 3D print more homes »
Citing official ICON sources, TechCrunch exclusively revealed that the US-based construction 3D printing company raised an additional $185 million in a round led by Tiger Global Management. The financing, which would be an expansion of ICON’s $207 million Series B announced last August, brings the company to nearly $2 billion in valuation in a rapidly growing 3DCP (3D construction printing) segment.
A spokesperson for ICON confirmed to TechCrunch via email that “We are thrilled to have the opportunity to continue to partner with world-class investors, board members, and organizations at all levels”.
Previous backers include Norwest Venture Partners, 8VC, Bjarke Ingels Group (BIG), BOND, Citi Crosstimbers, Ensemble, Fifth Wall, LENx, Modern Ventures, and Oakhouse Partners, among others. It is not clear which of these investors also participated in this extension. With the latest funding, ICON has now raised a total of $451 million in equity.
While ICON is primarily active as a service and technology provider in North America (US and Mexico), several other companies offer construction 3D printing at many locations around the world. Of these, the current market leader in terms of installed hardware base is COBOD. The Danish company has already achieved profitability, as well as rapid growth rates, by selling its construction 3D printers to customers involved in many different projects in Europe, North America and Africa.
With more direct involvement from construction giants such as Holcim, Cemex, PERI and GE, the construction 3D printing (3DCP) industry is transitioning from a very promising, but very immature, to a more professionalized and industrialized sector.
As a result, the application of this technology is no longer pursued by start-ups, dreamers and innovative entrepreneur minds wanting to disrupt the construction industry, but also by cement, concrete and concrete companies. increasingly serious and important construction, as well as by real property developers. These big players are now turning to AM technologies to solve some of the market’s burning problems: soaring input prices (including wood), decades of stagnant productivity, lack of skilled labor, a insufficient industrial production to cover the needs of operators. , etc
Therefore, we are seeing more and more signs that 3DCP technology will indeed disrupt the industry. Not just in the US and not just in the housing segment, but globally and also for more commercial/industrial applications. Examples include offices, wind turbines, infrastructure and EPC applications such as those at large oil, gas and fertilizer plants.
Due to this and the multi-trillion dollar size of the global construction market, valuations of companies in the sector have skyrocketed and sometimes resemble the inflated valuation of IT companies, with investors betting on the ability of these companies to grow. their activities efficiently. through increased automation.
With the promise of forever changing the construction industry, 3DCP companies aiming to be part of just 1% of global construction would be looking at multi-billion dollar returns.