Modular Construction Off-Site Report 2020: Terracota Ventures

Today, MITHUB released a report on modular construction, conducted by Terracotta Ventures, showing its status in the world and in Brazil. In line with what we have pointed out a few years ago, the document highlights a structured financial moving towards modular construction.

The document points out that 77 modular construction startups have received investments exceeding US$ 2.2 billion, since 2010. No wonder that companies such as Facebook, Google, Amazon and Autodesk are in these investors’ group1.

The figure below shows some of the main investment firms in modular construction and their respective investees.

Figure 1 – Some of the main investment firms in modular construction and investee companies

An important observation is necessary regarding this picture. The companies invested by these world giants present complete solutions in modular construction. This was also the case of Katerra, the largest global construtech in operation.

On the other hand, the investors in Brazil have invested more heavily in startups that own software or mobile applications designed to “boost” a part of the traditional businesses in the Architecture, Engineering and Construction (AEC) sector. Although the investments are more modest in these cases, and the risks are therefore lower, they do not represent complete solutions.

Regarding the thesis of companies such as Google, Facebook, Amazon and Autodesk, the investments that in fact have a large impact on the business model — in the entire life cycle of the projects and in the “Customer’s Journey” — have greater potential to become a robust and high-impact solution for transforming construction into a modern and effective industry.

The modular construction has doubled in size in the last five years. It is a solution to the traditional construction problems: predictability of prices and deadlines, unparalleled speed, quality and performance and even greater sustainability.

The BIM  introduced the construction in the digital age and is one of the technologies explored by modular construction, which also has a strong foundation in the preconstruction and fast-construction, as well as in the tools that both explore. The modular construction has also appropriated the various technologies and innovations offered by digitalization, in processes, products and productivity, towards Industry 4.0.


Aratau Construção Modular is a startup with a robust thesis and disruptive innovation in the business model and in the Customer’s Journey (patent request filed with INPI).


Source: Constru Liga – A Construção Conectada (

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