SoftBank Tech Fund Leads $865 Million Investment in Construction Startup

Founded by the former chief executive of electronics manufacturer Flextronics, Katerra handles everything from design to construction to manufacturing of glued wood beams, while building prefabricated walls and fixtures in indoor factories. The Menlo Park, Calif., startup calls itself a "technology company," emphasizing software aimed at making the process more efficient. A main innovation appears to be a business model that puts architects and construction workers on the same payroll. The deal, which values Katerra above $3 billion, marks the latest investment by the Vision Fund in ground rarely tread upon by tech investors. The fund, anchored by a $45 billion commitment from Saudi Arabia, was initially described by SoftBank as a vehicle to invest in technologies of the future such as robotics and artificial intelligence.