Higharc Company Profile

Background

Overview

Higharc, founded in 2018 and headquartered in Durham, North Carolina, is a technology company dedicated to revolutionizing the homebuilding industry through its connected cloud platform. The company's mission is to assist builders in creating better homes and communities more affordably by automating architecture, sales, and construction processes via the web. Higharc's vision is to modernize home design and construction, making the process more efficient and tailored to contemporary consumer needs.

Industry Significance

By integrating generative design technology, Higharc addresses longstanding inefficiencies in the $350 billion U.S. homebuilding industry, offering a streamlined, data-driven approach that replaces outdated methods.

Key Strategic Focus

Core Objectives

Automation of Homebuilding Processes: Implementing generative design to automate and integrate design, sales, and construction workflows.

Enhancing Customization: Providing tools that allow homebuyers to personalize designs through user-friendly 3D online models.

Reducing Waste: Utilizing data-driven insights to accurately forecast material needs, thereby minimizing waste in homebuilding.

Primary Markets

Higharc targets homebuilders across the United States, aiming to serve both large-scale developers and smaller builders seeking to modernize their operations.

Financials and Funding

Funding History

Series A (April 2021): Raised $21 million led by Spark Capital, with participation from MetaProp, Montage Ventures, Tectonic Capital, and others.

Series B (February 2024): Secured $53 million led by Spark Capital and Pillar VC, with contributions from over 18 industry leaders, including SE Ventures (Schneider Electric), Home Depot, Fifth Wall, Ferguson, and Starwood Capital.

Total Capital Raised

As of February 2024, Higharc has raised a total of $78.7 million.

Utilization of Capital

The funds are allocated to support growth, expand automated materials estimating, and enhance generative AI-based workflows.

Technological Platform and Innovation

Proprietary Technologies

The Homebuilding Cloud: A web-based platform that integrates design, estimation, sales, and construction processes, enabling seamless collaboration across departments.

Significant Scientific Methods

Generative Design Technology: Automates the creation of home designs, allowing for rapid iteration and customization based on specific needs.

AI-Driven Workflows: Incorporates artificial intelligence to optimize design and construction processes, reducing manual effort and errors.

Leadership Team

Marc Minor, Co-founder & CEO: Previously launched companies like Desktop Metal and Carbon3D to unicorn status; held management roles at Apple and global design agencies.

Michael Bergin, Co-founder & VP of Product: Led research at Autodesk, focusing on accelerating building design through deep learning and AI.

Peter Boyer, Co-founder & CTO: Former Principal Engineer at Autodesk, worked on computational design systems; co-creator of Dynamo, a generative design system for building information modeling.

Thomas Holt, Co-founder & VP of Visualization: Art and Creative Director from the video games industry, with experience in developing over 15 major games.

Competitor Profile

Market Insights and Dynamics

The homebuilding software market is experiencing significant growth, driven by the need for digital transformation in construction processes. The adoption of cloud-based solutions and AI-driven design tools is reshaping the industry landscape.

Competitor Analysis

Autodesk Construction Cloud: Offers a comprehensive suite for construction management, connecting workflows and data across project stages.

Revit: Provides building information modeling (BIM) software for architects and engineers, facilitating design and documentation.

Procore: Delivers online construction management software for project and cost management, enhancing collaboration.

AutoCAD: A widely-used CAD software for 2D and 3D design and drafting.

SketchUp: Intuitive 3D modeling software for professionals and creatives.

These competitors offer various solutions in building design and construction management, each with unique features and market positions.

Strategic Collaborations and Partnerships

Higharc has established significant partnerships with industry leaders to strengthen its market position and innovation capacity:

Home Depot Ventures: Invested in Higharc to support the adoption of its generative design solution, aiming to bring digital transformation to the homebuilding process.

Ferguson and Starwood Capital: Invested to accelerate automation in home design and construction, enhancing Higharc's technological capabilities.

Simpson Strong-Tie: Invested to boost innovation in the construction process, aligning with Higharc's mission to modernize homebuilding.

Operational Insights

Strategic Considerations

Higharc's integration of generative design and AI-driven workflows positions it uniquely in the market, offering a comprehensive solution that addresses inefficiencies in traditional homebuilding processes. Its cloud-based platform enables real-time collaboration, reducing cycle times and material waste.

Competitive Advantages

Unified Platform: Combines design, estimation, sales, and construction in a single interface, enhancing efficiency.

Customization Capabilities: Allows homebuyers to personalize designs through interactive 3D models.

Industry Partnerships: Collaborations with major industry players provide credibility and access to extensive networks.

Strategic Opportunities and Future Directions

Strategic Roadmap

Higharc aims to continue expanding its platform's capabilities by integrating advanced AI tools to further streamline workflows. The company plans to enhance its services for purchasing and estimating departments and improve integration with ERP systems.

Opportunities for Expansion

With a growing demand for digital solutions in homebuilding, Higharc is well-positioned to expand its customer base, including smaller builders seeking modernization. The company's focus on reducing design cycle times and improving operational efficiency presents significant growth opportunities.

Future Objectives

Higharc aims to become the industry standard for homebuilding software, replacing outdated tools and processes with its innovative, integrated platform. The company is committed to supporting builders in creating better homes and communities more affordably.