Cover—a startup that creates custom backyard homes for renters, raised $60 million in a Series B round led by Gigafund.
With participation from investors including Valor Equity Partners, Founders Fund, and homebuilder Lennar, this latest round brings the LA-based startup's total funding to $75 million.
Founded in 2017, Cover builds custom backyard homes for renters and financially-challenged relatives. While construction of modular and tiny homes remains a crowded industry, Cover sets itself apart from the rest of the competition by managing all aspects of the construction process of their accessory dwelling units, also known as ADUs or 'granny flats'.
Cover does not use any conventional methods of typical home construction including the use of drywall or 2x4 wood construction.
Using their proprietary software, Cover designs, engineers, licenses, and constructs all ADUs off-site and then transports and installs each dwelling in as little as 30 days without the use of cranes.
Since typical drywall was not designed for transportation, Cover uses lightweight steel and aluminium to construct their building frame and ceilings, respectively, while their panels are made of a rubber compound.
Currently, Cover has a large backlog of orders due to global supply chain issues and labor shortages that will keep them busy well into 2022.
To date, Cover has built and delivered 20 homes in the Los Angeles area. Over the past year, the startup has doubled its production output and reduced its delivery time by 4x.
Cover plans to use this latest round of funding to hire top talent, scale construction locally, and then eventually expand their business nationwide.