Bloomington’s Terran Robotics completes pre-seed round
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A Bloomington-based automated construction and design company has closed on a pre-seed round of funding that its CEO says will help the company prove the viability of its technology.
Terran Robotics has developed a platform that uses artificial intelligence-powered robots to construct Adobe-style homes with earthly materials that are designed to be energy efficient, environmentally friendly and more affordable.
The round was led by venture capital firms SOSV in New Jersey, Unruly Capital and ARUP Ventures in London, and Third Derivative, though a specific dollar figure for the funding was not disclosed.
Terran CEO Zach Dwiel told Inside INdiana Business the company will use the funding for further development of the technology.
“We’ve got a few people we’ve hired to help run these robots,” Dwiel said. “We’re going to be building a few more robots this winter, and we’ve got projects starting in early spring both in Bloomington and Columbus, Indiana, that we’re going to be building, kind of proving out the technology can work, proving out the price point.”
Terran said the material and building process for its mission can drastically reduce the amount of carbon dioxide created through housing construction and is suitable for developers across regions and project types, such as multifamily housing.
Dwiel said others have tried a similar kind of automated construction, but the expense has led those efforts to dwindle, largely because of the materials.
“You’re reducing the cost of labor [with automation]…but if you’ve got expensive materials, the end product is also going to be expensive,” he said. “In our case, because we’re using the clay that’s on site as our primary building method, we’ve got low cost materials, we’ve got low cost labor, and then our robot is also low cost.”
The robots are driven by cables and can scoop the adobe material, which is placed onto plywood and hammered down and formed into any configuration needed.
Jacob Bower-Bir, founding designer for Terran, told IIB in May that the natural materials used in the company’s operation create a structure that is recyclable, regulates the environment and has benefits for human health. Dwiel adds the buildings are fireproof, tornado proof and can withstand all kinds of storms.
Terran says it has signed contracts with three customers and secured six letters of intent with developers for future projects representing $6 million in potential annual revenue. While the first tests of the technology are being done in Indiana, the company has its eyes set on other regions, particularly in the Southwest.
“At this point, we just have to prove that we can do it, prove that technology works, prove the cost point,” Dwiel said. “People want nice homes at low cost. This is quite a common desire, and so we’re really just kind of bottlenecked by getting this fundraising now, so that we can prove out that it’s possible, and then scale up as quickly as possible. There’s obviously a huge need for low-cost, high-quality housing.”
Terran Robotics currently has seven employees, including two recently hired following the funding round. Dwiel says they are hoping to add one more to the company’s ranks in short order.