#11: Aleh Kandrashou & Aleksandr Gampel - Building the Factory that Builds the Homes

#11: Aleh Kandrashou & Aleksandr Gampel - Building the Factory that Builds the Homes

I'm so excited to talk to you guys. I think that one of the coolest things about this

company is that it adheres to Elon's vision of the

world with his company. So often when Elon talks about his companies,

he says, you know, yeah, sure. Tesla's building cars. Sure. SpaceX is

building rockets, but the real product is the factory, the factory that

builds the rockets, the factory that builds the cars. And so for you guys, it

really, to me, it seems like your product is the factory that builds the homes.

A hundred percent. Everything was built day one with scale in

mind. After all, our goal is 275 mobile micro

factories out in the wild. There's no way to do that, not having the

factory be the product. Oleg can go more into this because day

one, he was thinking about how it's all the system. And Oleg, I mean, you

Yeah, well, I'm 100% agree with Alex. And in the

beginning of the project, we began to think how we will scale the business. And

that's why everything that we're doing, we try to fit to

this process, how we will scale and how we will just open new and

new fact and supply, you know. If we change something,

we change the machines, we change the parts and so on. But all

Totally. Because I mean, at the end of the day, you guys are building homes. That's like the thing that's coming

out of the factory. And the thing that if you if you weren't building homes, then

you would make no revenue. It's not as you can build a factory and then, you know, that

had to do nothing, obviously. Like the point of it is to build homes.

And so one way to build a better home is to basically

do it yourself. Like you two are out in the field. hammer

in a way, like whatever, installing the things yourselves, just like we're like

working really hard like that. But obviously, like that's not something that's

going to scale to a venture meaningful business. Like ultimately, I

think like after looking into it, I think maybe the simplest way to describe what you

guys are doing is that you're building better tools for home

builders, right? Like, in theory, your your tool

could be just like a magical screwdriver or something. That's like the

greatest installation tool that makes it so much easier and faster and cheaper. Of

course, you're not building magical screwdrivers, you're building other stuff. But would

you mind telling us just like what those things are, very high level,

Yeah, I think you hit it on the nail. I mean, anyone can build a home. Historically,

it's not hard to build a home. There's lots of folks that are fragmented out

there across the world that build homes. The harder part is

how do you make a tool, like you said, which for us is our product, which is a mobile micro

factory to enable home building with a lot less skilled labor.

which in turn reduces cost and generally reduces the

labor hours required to build a home. How do you do that on mass scale? How

do you do it in a cost effective way? That's the hard part. That's

why we had to think about the system. The byproduct, the homes, that's

just, like I said, a byproduct of that system. Our tool,

like you say, is a mobile microfactory. It is what exactly I'm sure

your viewers are imagining it to be. It's literally a containerized solution.

We bring that wherever there's demand. We erect it in a matter of

weeks, so literally shove a bunch of our proprietary machines which

are stations that I'll describe what they do, but we shove them into containers, inflate

up mnemonic structure, which all I can show you are R&D centers in one

of them, so you can give a quick tour in a bit. And we basically

create a perimeter that forms a temporary decentralized

manufacturing facility. Within it, we do one

of two things. One, we make things from scratch. So things

like frames or windows or helical piers, So

certain elements of a home that we take a raw input turn into a

finished good. And then other things that are a bit more basic and off the

shelf like the sheetrock behind your wall or my wall or

PEX pipes that form the plumbing or wires that

we're pre-cotting prepping. But the idea is we do two of those things,

we package them into stages, basically everything

that a home is comprised of, and get to send that down the street because our

factories are proximate to where the actual construction is happening. And

then we get to assemble those kit of parts into finished homes. But

our product is the entire system, and its byproduct are

I can add, we can look at our job from a

little bit different angle. You explained that we come

up with a new screwdriver, but still the GC,

they have the same process. But in our case, we provide to them also

the different process, how to do the same job. And to this

process, we provide to them all the tools, but this is vice versa

tools that they're using, right? It's a software, it's

machines, and so on. And I can explain that. The construction process

is a project management process, where there is one guy

who controls the construction, who push everybody, and

if something will happen growing in this waterfall, everything

will crop. In manufacturing, the process is

set up in an absolutely different way where there is a conveyor. And

in this conveyor, one process controls another one. And

that's why it's more stable stuff. And that's why we

set up the KUBI as a manufacturing conveyor,

starting from the materials and design, and

finishing with assembling. That's why assembling team, it's also

part of the conveyor. It's employees of the factories. That's

why all of this process is absolutely different now. Now

Yeah, totally. Which is a unique way to think about home

building, right? Because normally you don't think about home building as like a

factory process, like Henry Ford or something. You're not thinking of

But the interesting thing is there's parameters. It's almost tough

to recall what we're doing, what Henry Ford

did with cars, because if you recall, Henry Ford said, you

can have any car you want as long as it's black and it's the Model T or

whatever. In home building, it's a bit different because folks

require customization. Those folks being end consumers, developers,

et cetera, they require different sizes of homes, layouts, finishes. Not

all the same homes work for the same lot in which you're placing

the home. So our system It's pretty dynamic

in the sense that we needed to innovate within parameters that exist.

Those parameters are regulatory. Those parameters are around customization. So

there's, you know, I know you're in space, that's really your

domain expertise in space. You get to kind of go from A to B in any

engineering possible solution you need to just to make sure it works. Here

we're confined by a box and that box has so many parameters from lenders

to regulators that we had to innovate within it. So we can't just

go full 180. So some of the principles that we

have in this space is, okay, decentralized manufacturing, that's

one approach, and we'll get into why that needs to be the case. But our

second and third pillars are around Familiarity of end product, meaning

we can't over-engineer a home. It has to be the same home that's been built before. And

two, cost. So those two things are very, very important, and

What's the simplest way that you could describe where technology

enters the process, basically? So think about it as

at one end is like the dumbest home building technology in the

world, like we're using hammers and nails and like printed

out blueprints and it just like the one guy has to know how to interpret all

the blueprints on the other end is like tech utopia home

building like nobody you I personally me Christian could

go like build a home tomorrow just myself like where do

you guys fall I'm sure this is different for different parts of the process but like what are the

It's interesting because in theory, you, Christian, could go build

a home tomorrow. Homes are not a very sophisticated thing. They're actually

not as high quality as people think they are. There's lots of

mistakes and lots of standard deviation worth of mistakes, et cetera. It's

really a function of the labor hours it would take you. So you would

be building your home for three years probably, right? I mean,

technology hasn't really evolved in the construction sector. In

fact, construction workers today are less productive than they were in

the 1970s. It's a function of a lot of things. It's mainly probably

a function of the aging demographic in the space. Average

construction sites are 40 to 50 years old, right? It's

a very labor intensive field. So we've gotten

less productive, and there is also physically less hands that are capable of

building the amount we need to build. So for us, technology solves

the skilled labor piece, that's the pleading, and the labor hours required, which

helps bring down costs because it physically takes less time. I

would say our IP is layered in several, I'd

say like three and a half steps. One, it's the

factory itself. So 50% of the machines inside the factory, we

make ourselves. They're proprietary to us and some of them are

pretty complicated. Some of them are all like getting gray hair over

some of them. And some of them are simple, like certain

shelving systems that didn't exist in the market, but help our lean manufacturing process

specifically. So the factory itself is, you

know, there's IP around it. Even things as simple as shoving machines into

containers, you know, that's hard. You got to make four dozen custom

shipping containers for every factory. You have to certify them because you

have to ship them globally. Once you change the structural integrity of a container, you

can no longer insure it. So like even little things like that, you chop

a solution off and it's like a Medusa's head. There's 10 other things you got to solve. The

second layer I would say is the end product. So the kit of parts

that go into the home. Yes, they're basic. Yes, they're compliant, but

there's still certain nuances to them that allow them to be assembled on site

in a quick manner. The third is around software. So

our entire factory, entire processes are It's

all our software. There's no software at the shelf. So there's an entire OS to

running the factory and the processes. And the half other step,

I said three and a half, that's really know-how. It's hard to do what we're doing. That's

why, you know, when it comes to IP, it's almost hard to believe in IP because

if someone can do this, we should probably go work for them. I know that's Oleg's number

one belief. But relative to traditional construction,

I mean, traditional construction is swinging a hammer, a very skilled carpenter,

basically, a home off-the-shelf

technology, some proprietary technology, but it's mostly Toyota's production system

at play, is to create a repeatable process, a

quality repeatable process that debundles from skilled labor. Oleg,

maybe you want to add from like how you feel about the technological piece

Well, first of all, when you have project management

system, you need to use professional guys.

And how we can determine that the guy is professional? He know what

to do and he have still how to do it with a

high quality. We solve this problem with

unskilled labor, I explain you how. The first of them, with

exact distributed software and a lot of construction, plus

an Unreal Engine, we exactly say unskilled

labor what he need to do right now and automatically generate

to him video instruction what he need to do to take this

piece and put it here. After that, there is an education

system that we educate him to use a screwdriver and

so on, and he passes through the education testing system, and only

after that the system gives him the task to do that, regarding, you

know, to do quality job. All the kit of

parts that we design, we design in such manner that

the guy have no chance to make a

mistake. It's only click-click system and

the design of all of these kit of parts this way that unskilled

labor need to install it and the system automatically install

it in that place where it should be installed. That's why all

the job, when we can't digitally determine

the quality of the job, we take off of the process. For

example, to paint, to paint the wall. How

you can determine the quality of how you paint the wall? It's

very relative. One guy tell you that you painted good,

another one tell that you painted bad. In

this way, we have finishes panels that

already produce in the factory with a click system that

you just go on to put it on the wall, click it,

and that's it. And that's why all the jobs that we're

doing in our system, we use this philosophy. And

in this case, we can take anybody from the street, unskilled

labor guy. He pass through our testing technology,

tools, machines, and so on. And after that, he

go to the construction site on the factory and the

system give him exact task what he need to do right now. I

will explain a little bit more. The construction consist

of 30 stages. For us. Each

stages, yeah, 30-35 stages. The first stage is foundation. The second

stage is, for example, framing, walls, and so on. We have a

software. In this software, we design the house and the system

automatically divide all the job and all the

kit of parts that we need to produce based on the stages and

gives a task to the factory what the factory need to produce

to exact house that we need to build and exact, you

know, stages and packs and kit of parts that we need

to produce and deliver to them. After that, Unreal

Engine system automatically based on this plan generate the

video instruction to each role in each stage because

we write this scenario, automatically scenario

to each state. And the system generate the

video based on this scenario, what they need to do,

what they need to take and where they need to put. And

based on that, the system controlled by the

plan, it's like Uber for the worker. It's a software where

the system gives a distributed task to all

the participants of the construction site, what they need to

do right now. And it's looking like that. You take

the phone, push the button, and there is a task. Next two

hours, you need to do this. And there is exact video

what he need to do. When you finish, you push the button,

and the system give the task to his master, to

his, you know, leader. He need to check. And he also

have the scenario of how he can check. He push the button, and

only after that, the system begin to generate another task. That's

why this is a very complicated algorithm that helps

us to distribute and to teach a lot of people and to

Well, I guess being humble, it's easy when it's one home, but imagine 20 different

homes within a 150-mile radius of each

mobile microfactory, and it's all happening at the same time at

And plus, all of them have different designs, but All

the designs consist of final numbers of kid of

parts. We have final numbers of kid of parts and based on the shape

and the size of the building we have different numbers of each of

them. And based on that, automatically generate video instruction,

tasks to manufacturing, tasks to assemble, tasks to instruction

I love that. First of all, I love that it's Unreal Engine. Like that is so cool.

And it's, if people haven't actually played around at Unreal Engine, they like might

not get it. It is such a powerful tool for so much more than just

100%. And we use also Unreal Engine for

the additional reality, because when

we give the task to the unstilled labor,

for the next two hours, what you need to do, on the phone, she pushes

the button, and she exactly see where she

need to install this or that style. And in

this additional reality, she point out where

she installed, what part he installed already.

And when she's ready, the system knows that this stuff is already installed

and it gives another task. And in this additional reality, this

part is ready. And for the new one, he sees a

The analogy goes like this of what we've done and why it's amazing. Imagine

you bought an IKEA table. It's a yellow IKEA table and it came with

a set level of instructions. But now imagine what would need

to happen to those instructions if that table constantly changed

from its size to the amount of legs it has to the colors. So

the assembly instructions would need to dynamically change to

correspond to that. So we've created. a dynamically changing

instruction manual for every sub-assembly step. It

uses Unreal Engine essentially. So it's a pretty complicated thing

to do. But that's the funny thing is like that's just one small

tiny piece of the software that, you know, there's boring stuff

like HR management for the factory that we've built in-house or like batching

the kit of parts to different sites at any given point, like which kit

So before we get too far into like the details, cause we're going to dive into this all

in super detail later. I think like, could we take one step

back and basically, can you tell us how many homes a factory can

build? How many like floor plans or whatever are supported by

that? Um, and then also just how far along you guys are. Cause you

guys actually have a mobile micro factory. It's not like this is some theoretical future thing.

It's like happening now. So can you tell us that like super high level, like what

Yeah, I think we should have probably started with an intro in a way. Kubi, you

know, we're a full stack hardware software business. We focus

in the construction space, mostly single family homes, eventually

will evolve to different asset classes. But we design, develop

and deploy mobile micro factories, aka that's our product. That's

what we talked about. Those mobile micro factories, they then manufacture

and assemble a lot of homes at scale. We've

been at this for four years now, we're about 350,000 engineering

hours into this. These mobile micro factories, they

can do about 200 single family homes a year. The

reason why that's relevant, and that number is not impressive, the

number that's impressive for us is the amount of output relative

to the cost to launch a factory. So we've productized the

factory, and part of productizing a factory is how can you reduce

the capex, so the capital required to launch one of these in

any locale because our business is to replicate copy and

paste these as many times as possible. But it's the

relatively low capex required to launch this. And if we articulate that

number, a lot of folks that, especially for manufacturing, sometimes don't

believe us. And that number is around 10 million. Zero to

60 full factory launched. And it will spit out about 200 single family

homes from foundation to interior finish over

And how expensive is this relative to the legacy technology?

Yeah, so I think let's take a step back. The reason why we get to reduce costs

so significantly, and that's a very important adoption metric because

incumbents, they have no incentive to adopt a new process, new technology,

something different if it's not cheaper. So for us, it

was vital to go to market knowing that we can build in

a very cost-effective way that's, you know, at least that cost parity,

but really it needs to be cheaper than existing incumbents. Right

now, out of the dollar that it costs to build a home, about 70% in

first-world countries is associated to skilled labor, meaning human

labor hours who happen to be skilled. Because we can debundle

from skilled labor, our 70% coefficient goes

down by quite a lot, so we can reduce costs by

a pretty significant factor. Today in the U.S., you know,

it's about $185 a foot to build a home. We

can deliver homes today with a factory nearby at about $100 a

foot. So it's a pretty significant cost savings. We're

talking about everything included from off-site factory labor

to on-site assembly labor to the cogs, so the kit

of parts. basically a home from foundation to interior finish

Totally. I mean, and is that, um, of the like, you know, $85 of

cost reduction or whatever, how much of that is coming from labor savings?

70% of the cost. It's a cost of labor plus subcontracting. We

use this portion. It's a standard method, standard operations that

I did a lot of time in other areas. When I begin to

use of manufacturing lean approach and machinery and

the conveyors were used labor force roughly 10 times. And

when we would use the 70%, roughly 10 times, plus

we are not using the subcontractors, we'll produce everything ourself.

We'll produce ourselves, windows, glass panes, and so on. And

the factory only consumes the raw material, not using,

you know, other subcontractors. And that's why, well,

as Alex explained, that we would use more than two times the

self-cost. based on

that, in this 80%, $80 that we would use

the cost, well, we would use it, not

only the skilled labor, we take only the profit from

the local vendors who supply windows, glass

We get to take away someone's margin that otherwise, you know, for

example, a window, right? There's a manufacturer, then there's

a wholesaler, then there's, you know, a reseller, then there's an installer. So,

you know, the window, Oh, to my right over here, it's been

marked up four or five times before it ever got to the construction site. So

there's certain things we also get to produce some meaningful things that cost

We try to make ourselves. I can imagine that this is actually sort of hard

to explain to people when you're first doing it, just because

there's so much, you know, like you're doing all this stuff from like, there's

the software element of you have this like super dynamic IKEA

instructions that teach someone how to anybody to how to build a house. There's the

hardware side, which is the actual factory itself. You're building new machines. You're

building this way to churn out parts, put them in pallets, and

ship them to a job site. There's even

more. There's the people side, like you said, how

you're organizing everybody and the way that people are being sent around to different tasks.

That sounds different. I think like maybe the simplest

way to dive into it a little deeper would be to just sort of like break it down into those individual

sections. So maybe I would propose like, well, we'll see if

this actually works out. But I would propose like, like people process technology.

Like, let's start by talking about who are the people that are on your job sites?

Who are who are you working with? Like you mentioned subcontractors, you

mentioned GCs earlier. Like, let's talk about who those people are normally and who they

are for you guys. Then we can talk about process, like the factory

aspect of it. And then, then let's loop back to technology and talk about

more like, what are those machines in the factory? And you

know, what are the magical screwdrivers that you guys are building to make this thing actually work?

So if that frame works, let's, let's start with people in a normal home,

like normally when a, when a contractor or like a general contractor goes

out, like, what does that, what did that look like? Like, do you have to

like bid on the construction of a home? Are general contractors working with home

Yeah. So why don't we explain first, like what, what a typical home in

the U S consists of, how it's built, et cetera. Cause I think, you

know, it's, it's so funny. It's like one of those things like electricity, right. People turn

on the lights and they just, it just happens. I mean, most folks don't

understand what goes into building a home. And obviously that's

a really big issue right now, given most of the US can't, I think 50% of

the market can't afford a $250,000 home. And we're not building

enough of them. There's literally $2 trillion worth of homes that we have to build, which

is what we're tapping into. But anyways, when you build a home, there's a

lot of stakeholders involved. So for example, you start with

a landowner or developer or home builder. Generally, let's

call it a developer, because I think that's a term that most folks are familiar with. that

developer will go acquire a piece of land. Then they have to hire, and

why developers are often compared to orchestrators, you know,

in an orchestra, what do they call the guy with the wand? Conductor. Yeah,

conductor, there you go. So developers are like conductors because they're really

orchestrating all the moving pieces. So they have to hire an architect.

They eventually have to hire civil engineers, surveyors, then a general

contractor who then hires a bunch of subcontractors, everyone

from excavators to foundation contractors to carpenters,

you know, who frame the house, to electricians, to plumbers, to HVAC technicians, drywall

installers, painters. I'm probably missing a bunch. But, you know, basically to

build a home, there's these 10 big categories of things that need to

happen. And then I think the National Association of Home Builders dives

into like the 36 subcategories or so. But the

idea is there's so many fragmented, moving pieces where it's not

like, you know, I guess it's not like if

you were to walk into Apple and buy a Mac, right? Like you're buying a Mac. There's all suite

of software, et cetera. It's a product here. you have to orchestrate

this entire product and everyone is misaligned from an incentive perspective. When

it comes to those people, then there's kind of process on

top of it. So first, the developer buys a piece of land, they

have to secure financing, then they have to go through a very complicated

process of permits and all the different legalities, meaning that

an architect eventually has to produce drawing sets, meaning here's

what I'm building, Here's it compliant with code. They submit it to

their local township and they get approvals to physically start constructing. And

first you start with site preparation. Then you put down the foundation. Then

you have to frame the home. Then you have to install all the systems. So

electrical, plumbing, HVAC, et cetera. Then you

have to insulate, put in the drywall, paint the drywall. Then

you have to do exterior interior finishes, right? Like cabinets and

the appliances and the lighting, et cetera. And all throughout

that process, you have inspectors that are showing up to

essentially check boxes saying this is legally allowed or hey,

you need to fix this. Once that's done, you get a final inspection and

then you TCO the home, meaning you get certificate of occupancy and

then end user can go live in that home. All of that takes nine to

14 months. Right now, it takes literally a

dozen plus people It's hard to build a home and there's

a lot of moving pieces. That's a typical home and it's very

Who are the people that are building that basically? Who are

the home builders in that scenario? How is

For me, it's weird because I come from commercial real estate and commercial real estate,

the developer is always the person taking the most risk orchestrating the

pieces and home building ecosystem. If you think about like

a Lennar was one of the top largest home builders in the US

or the GR Horton or, you know, uh, Toll Brothers folks

might know those names. They're publicly traded. Their stocks have done really well despite interest

rates. Basically, homebuilders, essentially, they're never the,

generally, they're never the group that's actually building. They're the developers.

So a homebuilder is synonymous with a developer. These homebuilders hire

general contractors locally because a lot of them,

at least the big ones, they operate on a national scale. There's no way they have general

contracting ability in every market. Therefore, they have to hire a

local group that oversees the construction, who hires all these third parties

that oversee all these subgeneral contracting

work. But Home builder different from general contractor.

General contractor is who physically builds the home. What we replace

and where we come in is we are a tool for home builders, but

we serve the function of a general contractor and all the subcontractors.

We replace that entire equation. So we are a turnkey solution

for a home builder that gives us their plans. Once they get that permit-ready legality

to build, we step in and build the home or the factory does

Got it. And maybe this is the right time to talk about sort of

the demographic problem and, you know, who are the people that are, you

know, at the end of the day, like, who are the people that are on the job site, like actually doing

the thing and, you know, creating, like, hammering things

and installing things. Like, do you want to talk about who that normally

would be and talk about the skilled labor stuff, but then also talk about who

We obviously look very different. Oleg actually hates when we get called a

construction company because we want to be and look like and

everything we do is more akin to manufacturing. And that's important because it

also translates to the type of people we hire and use, etc. In

traditional construction today, you know, a construction worker is exactly

what you'd picture a construction worker to be. And ironically, given

that, you know, the sphere of work that all of us here are on,

I guarantee that like you, Christian, don't know a single construction worker. You

don't even have a third cousin that's a construction worker. Uh, I for sure

living in New York city, don't know a single construction worker. Uh, all my

friends don't know a single construction worker, et cetera. That's exactly what's happening

is there's no incentive these days and no

one wants to be a construction worker. It's a physical industry. It's very

labor intensive. It's, not the best working conditions. It's

prone to injury risk, et cetera. You don't age well into

this industry. However, today, the average construction worker is

40 to 50 years old. Kind of scary to think about considering that

almost 40% of the workforce in construction is

going to retire in the next 10 years. So who's going to build America? Who's

going to build the homes we need, the buildings, the bridges, et cetera? So

it's a big problem. And for every seven folks that now retire, only

one replaces them. So solutions like ours need

to exist. Venture is very excited to back solutions in

this space, mainly because you have this massive, most vital

sector to any economy in every country is construction, but

you have a very depleting workforce. How do you go build what you need

to build? So it's least amount of efficiency, massive TAM, venture and

investors get pretty excited, but it's hard. So

we replaced that typical skilled laborer that

exists to go do the pieces of the construction process and replace them

with unskilled labor. So we can hire, you know, the same worker

that Amazon hires in their warehouse, or even a barista from Starbucks,

given that there's different stages to who we train, who the workers are.

I can add why, you know, I don't like when Alex explain us

as a construction company, Well, 50% of

the guys, the engineers who is working in KUBI, their

main motivation, they want to destroy the construction industry because

each of them build a home with the construction workers. He

do the renovation of his house, something like that. And

that's why they feel all the pain in the industry and they understand that

the industry is totally dysfunctional in comparison with manufacturing

because the process is different. And also the quality of

the job is very low in the construction everywhere because the

quantity of toilets, the quantity of the tools

that they use, the uniforms or

something like that, it's not hard for people to go to

the construction industry and we want to change Because in our KUBI,

in construction, on the construction site, we have a separate, you

know, two ship containers where there's a locker, you

know, shower, bathroom, all the tools, everything. And

well, me personally, sometimes I go

to the construction site and I work myself in the stages because

I need to feel everything myself. And that's why when I work

there, you know, I feel myself much

better because the environment that

we create for the construction workers in the construction

site and the same as in the office. And they have no difference to

work in the office on the construction site. And that's why we additionally,

you know, do the additional motivation to

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what is the process of recruiting people to be on your job site

look like versus recruiting somebody to be on a normal job site? I imagine that

So we have to think of it this way. The reason why we wanted to localize

manufacturing is because you literally put your finger on a

map. Anywhere in the U.S., there's thousands of homes that need to be built. Our

thesis is lower capex, good

output of manufacturing. We only need 200 homes a

year to be incredibly profitable per factory. Incredibly profitable. And

you pick any dot on the map, there's demand for it, especially if

we can undercut the market in terms of cost. When it comes to a

full-capacity factory, we're employing about 260 people

per factory. There's 35 folks in

two shifts on the construction, sorry, on the factory

floor, so each mobile microfactory. And then there's, say,

20 construction sites happening within a 150-mile radius. There's

four unskilled folks in two shifts per construction site. That's

another 160. So 35 times two shifts plus four times 20 times

2, it's another 160. So the delta between 260 and

the summation of those two numbers is really the just

regular GNA of like janitors, like supply person, management of

the factory, etc. But all in all, 260 people. to

produce 200 homes a year. It's actually really

favorable and given those are mostly unskilled, it's much easier

And you guys actually have part of that as part of your process though, right? Like

if there was a person who's setting up a factory, you've also extended this

like, here are the steps in like a very easy way. You've extended that

We have an entire HR system in the OS, hiring,

training a person, payroll, all built in. Like we didn't API with

like rippling or something. We built it all in-house. It's relatively simple,

but it just works so much better when it's for our purposes. So

Okay. Humor me. I think that there are sort of

like in my head there are two sort of models for how

you might build a tech company in terms of the people you're selling your product to.

Number one is the Amazon Death Star model where

basically like you take everything you try to build

the perfect you not only try to build the distribution system but you also like

build your own products that you eventually sell to the end customers, and

you're really taking it totally end-to-end. Amazon

Basics is now taking how much volume of people

buying soap, people buying all the basics, that sort of thing. So there's

an Amazon Death Star model on one side. On the other

side is like the Arm the Rebels Shopify model, where

they're not trying to be the one store themselves. They're not trying to, you know,

replace everything you've ever done. Instead, they're trying to

do, basically, they're just trying to make it so that other stores can

be more successful and giving them the tools they need to succeed. So on

one end, Death Star, do it all yourself, end to end. On the other

end, Shopify, Arm the Rebels, help people that are already

doing these jobs, do the jobs better. Would you guys describe

yourselves more as like the Amazon of home building or the Shopify of

I think it depends on point in time. So I think

we have kind of like a three tiered master plan. It's going to take 10 years,

maybe more. The way we think about it today is it's

all like imagine there's a master plan and it's like a timeline. That

timeline is highly correlated to the right cost of capital. That's

very important to us. So our initial go to market, our

customer is really anyone that we white label a factory to, meaning

our customer is anyone we partner with to launch a factory, meaning

it's not our factory. We basically license it. So it

kind of looks more like McDonald's today, if you think about it that way. I'm

We have other verticals that we get into, which is an entire material

supplier arm. We want to supply materials to the factories, everything from

kitchen cabinets all the way to, you know, certain chemical composites for

our pure panels. Then we want to

launch our own home builder, you know, as part of phase three. So eventually,

not only are we helping small to medium sized home builders, we'll also at the same

time be competing with them. However, KUBI will be able to

reinvest into marketing a lot more than any of the top

20 national home builders today. So eventually we want to launch a brand

eventually, but it all happens in a tiered way right now. The

goal is like get as many factories out into the market as possible to

basically iterate via Kaizen, right? Process improvement the whole time.

And yeah, so like it's hard event today. Shopify eventually probably

Amazon. That's. the right way to think about it. Oleg has

always, since day one, pitched this vision and like, it's always been hard to

investors because like, it's already hard to explain our business. It's so

complicated. It's so much fit in. Exactly. That,

you know, explaining to them that eventually we want someone to, like Christian and

his family will go on, on like a sims simulator, essentially

within the confines of their local code, be able to put together a

home, pay for it. It gets sent to the local factory

automatically pay the loan and build it there. And

I can additionally add to my dream that as we have a

software that control unskilled labor and give them an exact task

what to do. When the humanoids will be ready, we can use

them because we already know what to do. We need to test them

and so on. And I think that in 10 years, when everything will be ready

Well, we're already built for it. The entire process is digital twins. So

theoretically, that's an upload to a humanoid, but humanoids are not capable yet,

obviously, to execute on what we need. So, Christian, one

of the things we've realized is kind of tough in this space. industrialized

construction, right? It can take many different forms. We're just one form

of it. And we believe in our thesis. We think the bets we're making are correct because they're

translating to cost and us executing on homes. But a lot

of folks preach automation in the space. We think automation day

one is not a correct thought just because you look at Tesla. The

reason why Tesla has been able to automate so much is because they've benefited for,

you know, almost half a half a century of Toyota's production

system and constant improvements around, you know, debundling

from skilled labor, making humans more efficient, etc. Construction never

had their Toyota production system phase yet. So how can you automate? You

might be going in the wrong direction. There are certain things that you don't even know what you're automating. So

we're big believers in being able to make humans more efficient first before

we automate. I think out of our 15 stations, only two are semi-automated at

this point. with eventual thought process that eventually each

This is actually a really good tie-in. So we talked about people and who is

building the homes and who are you selling to and that sort of thing. I think it's

now good. Let's move over to process. So maybe

to set off this section, can you talk about the

diversity of homes that you'll be able to build just like right away? Like,

are you starting, every home is exactly the same, we're just

going to copy and paste it a million times, or are you already introducing that

variability into like the actual final homes that are being output from your

It's day one, and that's a very important principle. Lack

of customization in the space has been lack of adoption. And

maybe you can talk through the base kit of parts and then the permutations.

The technology, for sure, have some restrictions. It's not, you

know, have some variety of design like it's ordered

standard construction. But at the same time, we have

less, you know, restriction with a modular construction

because we have a panelized system. We're producing panels,

part of the frame, it's like columns, it's like electric

stuff, it's something like a kit of parts. And

using them, we can do a different variety of design. Plus we

have three external finishes, two internal finishes.

And based on that, we have also a lot of designs that we can use. Based

on the mythology, we have a grid, 10 feet on 10 feet.

And based on that, the plants can be different, external plants, internal

plants also can be absolutely different. That's why right now we have a software

where our engineers very fast, or architectural

guys, very fast do the design of the house,

push the button, and the system automatically recalculate

the exact price because we exactly know how much

kilo parts and what kilo parts we use, how much, many hours we

need to assemble and to produce it. And, to

choose different type of finishes, like in a game, we

also can change the view of design and so on. After that,

push the button and the system in Unreal Engine automatically generate

rendering, plans, video, instruction how you can

It's so, um, like mind blowing sort of that you'd

be able to do that. Like, can you talk about just basically the, the

one step deeper of like, what is doing that generation and

what to do is doing that, like work planning or whatever. Like maybe, maybe

let's just focus on the work plan piece of it. Like how, like

how, how, how do you design a system that knows how to build

a home and then knows that this step has to go before that step and knows that

Well, I can start, and Alex will finish. You know that to

solve very complicated problem, you can divide

it on numbers of very simple problem. And

when you solve each simple problems, you can solve the

big problem. We do the same in the construction. We,

all of the process of the construction, we share on

very simple operation. a repeatable simple

operation. And with unskilled labor, we solve

each operation step by step. And the guys even

don't know what they will do tomorrow, because they know what

they need to do now. And the software orchestrate it

Does that mean that you have to, at the base level, like

when you're, when you're designing this and you have your engineers working in your R&D center,

you have to define a set of like primitives, basically, like

plug thing into other thing or like screw in, screw. Okay.

All the instruction and so on, and we put them into the software and orchestrate,

orchestrate them based on that. That's why, and the,

the beauty of all, maybe it's not the beauty of this stuff. If

we will change something in this scenario, kid of parts, at

the same time, we need to change the software, machines, and

the process. And that's why it's so complicated when you

I think I can actually explain it even simpler. So think of

our process, meaning from raw input to

finished goods to assembly as a multivariate equation. It's

multivariate because there's different raw inputs, different

finished inputs, different finished goods, what you need to do with

them, how you package it, and who does it, and then onsite, right? So

when you have a baseline, that baseline has say hundreds of

iterations of combinations, right? Of steps. It's all about

just orchestrating the steps. And the hard part is,

ah, the hard part, let me explain the hard part. The hard part is knowing when

to push and pull basically, because it's not, again, you're not building one

home. There's a person in the factory who everyone

gets a phone it says go to station 26a do this

task that person is not always only doing that task that

person is constantly being distributed across different tasks that's

the hard part of like knowing when to pull and push for just-in-time manufacturing here

so it's like the baseline software is distributing process

based on set parameters of raw inputs. What

do you mean by pull and push? At any given point, right, there's different stages

to a home. It's not like you're producing the entire home in one inning. You're

basically producing for the 20 different homes happening around

the factory, you're producing a different stage for each of those homes. The

push and pull being just-in-time manufacturing, essentially, but

Yeah, I can explain to you. For example, we need to use this pan to

do the stage number one, and we need to use

these airfoils for the stage number two, and this

one for the stage number three. The system have,

on the warehouse near the construction site, these two things.

They are doing like that. When the guys taking this pan

and begin to assemble it, the system give task to the

factory that they need to produce this one and deliver it.

And that's why this is a non-stop pooling system. And

the system needs to test and pool the necessary kit of parts to

assemble on the construction site, plus what they need

Part of the mobile microfactory isn't just because of the first

principles, let's close the feedback loop between off-site process

from some gigafactory and on-site. It's also economical in

the sense that we don't need to store, you know, tons of materials

on site that you have to pre-buy, right? Those are massive fixed costs, or

I guess variable costs, but up front. We don't have fixed costs like

rent, because otherwise we would have needed to rent an Amazon warehouse that's, you

know, several million dollars a year as a fixed cost. We rent a parking lot that's

less than 1% of the P&L of the factory. So it's things like

that that are economical for a mobile microfactory, not

From a first principles perspective, I feel like the pro

of just-in-time is obviously lowering the

capital burden. You don't have to have as much stuff in inventory You

can just pull things in when you need them, and then they're immediately out in the factory. And the

amount of time that they spend in the system is relatively low from you buy them

to they actually are deployed. But the trade-off

for that, in my mind, is variability or risk

of not having those original inputs to do. In

theory, you would buy them exactly the day that they're going to be put into the machine, and

then they get sent out the next day. But all of a sudden,

there's a shipping delay of three days, and then the whole thing sort of

breaks down. Are there ways that you're solving for the variability problem

Yeah, it's called Kanban. You know, the just-in-time, it's

only one of 14 principles of lean manufacturing. We

use all 14 in our approach. And one

of the principles and other principles is to use Kanban. Kanban,

this is a minimum level of materials that you need to store.

That and this minimum level is determined by the process itself.

For example, if your supplier need to have one month

just to deliver to you, you know, all of these materials. And

you will use, you know, this amount in one month. You need to

have in the warehouse two months material. And

that's why all of these levels is controlled. And we have final numbers of

these materials. that control on the factory. We have

a special shelving for that and so on with Kanban card.

I'm right now. Christian, while Oleg is walking the other layer to

this, remember I told you the second big bet is around familiarity? The

reason why familiarity matters in this case is none of our supply chain

is proprietary. Imagine that day we didn't get

cheaper sheetrock from China. We go to Home Depot, not a problem. So

the material selection is very important here. We need it to be locally available on

any market we launch. Very, very important. Part of that is because

First of all, this is a design center where

the mechanical engineering is seen. This

is the technological guys who is doing the software for CNC machines.

And this is a manufacturing where we produce

machines and kit of parts. And I will show it to you how the machines looks

like. For example, this is a robot for screw pile foundation who

produces screw piles. This is, you know, storage

for the aluminum composite. This is, for example, the storage that

we also produce to use light beads. Or,

for example, This is also the

storage for the gas. And in this storage, you can

see this is a Kanban card. In this Kanban card, this

is the minimum amount that you need to use and the order.

And this minimum order is controlled by the quality of

the suppliers that can supply for us the gas. or something like

that. And this is also to control. That's why we're producing not

only machines, we need to produce also such kind

of stuff like that, with the Kanban cards, with everything,

and so on. That's why the system itself, it's not

only the machines, It's also the shelving, it's

tooling, it's how to take it, how to deliver it,

how to control it. And only producing that, you

How much? So I imagine that there's one part of

this that's like, you design the factory to be the platonic ideal

of what the factory could be, right? Like you have, you have all of your, for

example, just very specifically, you have your Kanban quantities that are defined based

on some formula, like lead type of part or

to, you know, how much we have to buy, whatever it is. But then

I imagine there's another piece of this is that you actually go build some homes in the real

world. And once you go build some homes in the real world, you realize that

your factory is not the platonic ideal of a factory, that there is something out

there that causes inefficiencies or causes weird variable changes

or whatever. How do you measure that? And then have you

already done that? Have you already found some stuff that is not ideal

So all the time we're spending like thousands

of hours in a machine. And then in real world, you

start hiring unskilled labor to test it and it's just not working the way you

want it. You throw that in the trash and you restart. We've also

started building homes around their first test mobile microfactory. We're

constantly learning there. An example. uh sheetrock like

the wall behind you right it gets literally like nailed

into place on your framing then they'll plaster it

and then they'll sand it then they'll paint it twice that is

the most horrible bane to our existence because it makes the

construction site dirty it's very slow so we actually found a

solution for that we no longer will be as a finish just painting

sheetrock and We won't talk about yet what we're doing, but something very

clever. Things like that you discover in practice

took too long, too many labor hours. You still needed to bring in

skilled labor. There was mistakes, but the way the system was designed is,

and I think where a lot of, uh, industrious construction has gone wrong. They've

all assumed exactly what you're assuming. You create some panel of MEP in

it, you bring it on site, it perfectly clicks together. But the truth is

with every iteration of stage, you're getting further and further. You're

getting more into territory of, uh, uncertainty, right? Oleg accounted

for widening uncertainty in the system. That's why it's a pretty flexible and dynamic system

And Ola, you can probably cover this more than I can, but... Well, I can answer

on your question, Christian. It's also one of the principles of

lean manufacturing. It's called Kaizen. Kaizen, it's

a process of nonstop development and improvement of the process.

And that's why when we begin to do the real work and real stuff, for

sure we amend all of the shelving, all of this machine, the

process, and so on. And that's why we open our own test factory

where we test all of that stuff. And after the second, the

third, or the fourth for sure the process will be punishing

more and more and more. And this is beauty. You know that

in lean manufacturing approach, when the lean manufacturing consult

come to the manufacturing and she see a

lot of job, she feels himself good because she

can change something. When the process in the manufacturing is

so polished that you can change everything, you have no job. That's

why, for sure, all of the process that we're doing in the factory, it's

To be really specific about it, how are you capturing that sort of

efficiency data, though? Because I imagine that

this is a benefit for you guys. If you know what step

everybody's on, you're like, oh, we thought that was going to take two minutes. It turned out it took 10 minutes.

Oleg spent an entire weekend, two weekends ago, just trying

to quantify and create KPIs around stages. Part of the reason

why we removed Sheetrock is because it's an objective finish job.

Did you paint that well or not well? It's still painted, right? You can't

measure that. So that's why we have to remove all jobs that can't be quantified.

And as I explained to you that each part that we produce, we

exactly know such kind of metric, like how

much material we spend and how much it costs, how many

man hours we need to use to produce, and how many man

hours we need to assemble it. That's why when we produce

right now houses, we check all of these metrics and

we improve them. And that's why as less, Hours,

for example, to produce this stuff we need one

hour and one hour to install it. When we change

a little bit the process, right now it's half an hour plus half an

hour. That's why we improve the process and we reduce the cost. This is

one of the main metrics that we control, how many hours we spend to

Very cool. Okay. I want to shift this again from, okay, we've talked about

process, we've talked about people. Let's talk about the tech a little bit more. So I'm

curious to hear, I don't know how much of this is open

to talk about or whatever, but what are those machines? Like what are the things that you've built in the factories

that are new and different and you guys had to build yourselves because you couldn't

There is a lot of robots that do a lot of job.

For example, like we use a standard welding robots,

but we produce the tooling for them. And because

this tooling is 100% fit only for our, you know, proprietary

parts. We are producing the machines that producing the

panels. It's a sandwich panels within the same time,

meaning freezing and so on. That's why it's more complicated. But

at the same time, when we look on the factory, that

our factory, it's a bunch of

small factories, and each of them produce separate

part. For example, there is a department that produce glass paints

on the windows. And there is a lot of machines that do

that. For sure, we can separately produce

windows and can sell it. But for us, it's not a goal. For

us, the goal is to produce windows only for our own, you

know, houses or for the product. Because we need to

do it just in time. For example, the other department producing

screw pile foundation, the same stuff and so on. That's

why just for you to explain what machines we

did and what not, because it does not exist in the market, I

will be happy if all of the machine will be in the market and

we can buy. That's why we will, you know, we will reduce a lot

of our time, but it's not existence. That's why we need to design

Christian, our goal is to get from A to B in the simplest path possible.

B being, you know, 275 mobile micro factories,

A being kind of, we got to produce everything ourselves. We can get

to A to B in the simplest path possible while being cost

effective. That matters too. Some machines are out on the market, but they're too

For example, they know the structure of

the factory itself. You know, we have a panel, we have a

ship containers, all of the machines we put into the ship containers ready

to start. And we put the inflated building on

it that I showed you in our Denari, we have the same. It's

also one of our invention. But without

it, We need to compete with Amazon to open

275 factories a year. That's why it's

So how do you make the decision about, you know, I imagine, for

instance, like you're not building your own doorknobs or something in-house, but

I know, we are, well, the glass, I can explain you why. Doors,

you use only one, say, one size. And you can use the

one size of the doors in the building, that's why you can buy it and you can

have it on your warehouse. Regarding the glass, you have 10 or

15 types of the glass, of the glass things, and

you need to hire the local factories that

will produce windows for you. And

as it is a nonstop, just-in-time process, we're

not using subcontractor because when we will begin

to use the subcontractors, this guy will a hundred percent fail.

And it will not supply to use this, this windows just

in time. It's a hundred percent because they have their own problem. They

are doing their own production capacity and so on. And our conveyor

will stop. And that's why not to stop the conveyor, we

use only raw material and that one of the main principle, what

we produce and whatnot, for us, can we store it

in our warehouse or not? If we can, we will buy

To add to that, it's actually more simple than that even. So any

finishing for the house, think like, you

know, things like lighting or cabinetry

work, you know, like kitchens or appliances or like doorknobs, you said. So what

quantifies is finishes. we generally buy from the

market, but we might prep it in some capacity in

the factory, but we don't make it. Everything else, like the

foundation of a house, the walls of a house, like real structural, like

Got it. So I mean, but the things in principle that you would want to bring

in house are things that are, there's not easy

like commoditized supply chains for that are

you would want to bring it in-house if it's more custom like there's more variability in

Well, plus something like a doorknob has been so mass

produced and there's so many suppliers that it's very hard for us to, like, it's

not worth the ROI to go build a station, increase the size of our factory,

employ the folks to do it. Like, we can just buy that from China, you know,

In additional stuff, why we make a decision to produce EFON based

product where the manufacturer have big margin, for

Totally. So if it's more down to like the actual metal cost

of the doorknob, if doorknobs cost $100, you guys would definitely

The other practical reason is like warranties, right? When we buy it

from someone, we're covered by their warranty. When

there's things like windows we have to make or

non-structural wall panels, we then have to provide the warranty and

have to get certification to produce those things. So, the

Alright, I'm just going to lob a softball into the air and

you guys are going to just hit it out of the park. Why

There's different forms to industrialized construction. I

think out of the three forms that exist, there's volumetric modular, If

any of your viewers have ever stayed in, you know, maybe student

housing, maybe citizen M hotels, it's a chain of hotels across Europe, right?

Many of them in the U S one just opened up in Silicon Valley. I think volumetric

modular, the idea is you have some sort of gigafactory. It's, you know, 50 to

$200 million and it produces entire rooms offsite, like a finished

room, finished kitchen, living room, et cetera. And you end up shipping basically

volumetric boxes, shipping air. thousands of miles and

someone else has to go assemble it, stack them on top, et cetera. That's volumetric

modular. Prefab is really, there's different notions to

prefab, but that's really where we get categorized, although we're really more like traditional

construction meets prefab. But prefab, the idea is you produce

maybe wall panels that have MEP in them or some parts of

a home, maybe all parts or some parts of a home, ship them thousands of

miles, put them together on site. And then there's 3D printing, which

is like the full 180 other side of the spectrum. 3D

printing, I think, is an interesting solution that Venture has gotten incredibly

excited about. I think it's going to be a very long time before it

works. And when I say works, remember, the goal is we've got to produce literally

millions of homes in the U.S. There's, in our opinion, some

issues to 3D printing. Those issues are around, A, you

can't build bigger than the 3D printer. B, it's very

unfamiliar. It's very hard to create adoption in the States when you have so much

unfamiliar. I mean, 3D printing is just like alien compared to traditional construction.

It's not cost effective today, and mainly because it's

just 10% of the home building process. 3D

printing solves for framing. You frame a house. Everything

else, 90% of the build is still done by that missing skilled

labor. Traditionally, the interior finishes,

foundation, plumbing, MEP, et cetera. We

don't see 3D printing as the solution to solve America's

homes that are coming out of the factory. You have the system in

place. You have the Kaizen cards that you showed me. It's all sort

of there. Do you guys have a V2 that's somehow

going to make this 10 times better in the future? Or is

the main thing that you guys have to go do now just basically finance

this, build a ton of homes, prove that it works, get the debt financing thing

So part of the reason why we're somewhat unique, and you obviously spend

a lot of time in deep tech, and that happens to be at, say, 100% of

your network at this point. The reason why we're unique

in deep tech is because we've been able to arbitrage some of the technical

de-risking with Eastern Europe, where engineers are 10x less,

where Ola gets to spend a bunch of his time, where we set up manufacturing

and R&D, and we didn't need to raise hundreds of

millions of dollars to get to this point. We've done quite a lot of

this with very surprising amount of capital to the point

where we've now de-risked probably 98% of any of the technical

risk associated with the business. None of this is R&D anymore. All

of this has been tested. I mean, of course, there's constant improvement. We're

going to market with what we call the 1.2, which

is our factory associated with single family homes. Everything

going forward in the capital we are and will be raising in the future is

all around execution operational risk and constantly driving

away from venture toward debt. But yes, we've done, we've launched,

tested what we needed. Now we're actually starting to commercialize and we're starting

to sign contracts. Anything beyond this, we do have a

V2 and a V3 version of the factory, but those are tied

to different asset classes. So right now we're focused on detached

single-family homes, one-story, two-story, basement, et

cetera, but single-family detached homes. We want to

head toward multifamily eventually, and then to other

asset classes, every other asset class except industrial. the

Warehouses are big buckets of space. So where

the structural columns are to sustain the roof, they're

too far apart where our system can physically manufacture the size of

panels and stuff. So if we just stay in single family homes

alone, that is a massive, massive piece of the market. It's almost

50% of the US construction market. We can stay here for many

years. Other cool thing about our factories is because

it itself is a modular factory, each station can

be upgraded. So there's a station, you literally just take out a container and

plug in like a new window making station that's more efficient. You can upgrade

with time. So that's why v1.2, eventually the

same owner of the factory can get to v1.13 because they can

In developing of any process, of any product, there

is a KPI. It's called TRL. It's technical readiness level. It's

NASA methodology. Based on the TRL, right now we

are TRL number eight, because we are testing right

now in mass production. And our goal for the

next one or two years to open two factories, because

one of them we have, we tested TRL seven. Now we open

the TRL eight and we begin to earn money in scale. And after that,

It's our scaling at 0.9 when we must produce these

I mean, yeah, I mean, it does sound like this technical, the technical piece of

it is like very far along. I mean, I imagine you guys are getting a bunch

of folks like home builders reaching out to you saying like, hey, we want to do this or

maybe even developers, like people who have lands. Like, can you talk a little bit about

who are those customers? Who's reaching out to you guys? Like what sort of commercial traction

Yeah, so we have to go pretty slow right now. Our goal is

to move mass manufacturing to China. So we want to essentially,

we've now taken all our designs of machines. We know what our factory's blueprint

is, how to mass manufacture it. Now we can give it to someone else to mass

manufacture. So post this fundraise that we're

doing now, we're going to launch a Papa factory in China. Operations there

to basically do up to eight factories a year. And

then that will scale up to 20 factories per year, meaning all the machine

building assembly, we shove the machines into containers, package that

factory and send it anywhere in the world to be launched. However,

right now we have to still go really, really slow. So we've signed one

really big contract in the West Coast with a partner that we're

launching a factory off. We have two more in the works, also in the US,

and I think we're going to go pretty slow from that point on. But because we've

productized the factory and we've gone now, at least for a long time,

we've been quiet and now we're actually pretty public about what we're doing. We're constantly

getting inbound from folks that are like, wow, I could own this in my market.

I know there's a housing crisis. I know it's really inefficient to build. And

the gamut of folks we get reaching out, there's a range. We

get folks that wanna be partners that are like a small builder that says, hey,

if I call a bunch of friends, how much would I need to put one of these up? We get folks

that are massive general contractors in a region. We get ultra high net

worth family offices that are like, wow, now's the cyclical time in

the market to own a manufacturing business. We get PE shops that

do manufacturing industrial investments. So

it's a whole gamut of folks. But generally the folks who are most effective

and helpful for is anyone that wants to launch a factory who also has a

ton of acreage that they were going to unlock anyways. be a traditional home

building process. But yes, we're basically putting

folks in a queue right now. We want to be everywhere and we want 275 factories

That's so much volume. Once you actually have almost 300 factories

out there that are producing 200 homes a year, that's a ridiculous amount

of of scale. Here's

one thing about the Astronis business that I actually really like. Astronis

builds satellites. Each of those satellites is itself a contained project.

The success of one satellite has nothing

to do with the success of another one. This one might have 100% Utilization

it's like fully fully like up to scale and this other

one has 20% like that's not gonna have they're all gonna be 100% but you get the

point they're all independent and I think that's actually a pretty cool thing about

your product as well it's like you're building these factories this the

factory utilization of one factory has nothing to

do with the utilization of another factory I mean they're independent

They are. And just like you, you have a dashboard covering all these

different satellites and their performance. Our goal is also that a

lot of our corporate gets split between over

multiple factories, essentially, or we can oversee from our HQ

kind of the performance, which machine went offline, et cetera, across all

these factories. And Yes, it's hard to imagine 275 factories,

Totally. Yeah. You guys are building for that. It's not like you're building just one factor

or just one home. You're building for mass automation,

like factory line stuff. Um, okay. Do you want to talk a little bit about this fund

about like, you guys are fundraising right now, right? So if people are interested in, uh, being

Yeah. Most of the folks we spend time with are very technical, deep

tech investors. We're building a complicated business. A lot of folks who

spend time with, including our last investor who let her around, there's a climate tech

fund. There's a massive climate tech angle here that we rarely

talk about just because we believe economics should drive everything.

You know, sustainability should be a by-product. It should be just something

you do anyways. But climate spends a lot of time

with us, just given that construction is one of the biggest polluters out there. There's so much waste

associated with constructing, so inefficient, et cetera. We've

raised a lot less than people think we've raised, just given everything we've done. We're

now raising something a bit bigger, and it'll probably be the

last equity we ever raise, because everything going forward should be debt.

And I think you guys are pretty comfortable, especially in your business,

understanding where project financing and equipment, leasing, and

really the right cost of capital steps in. So our goal is to

do this last raise, prove this out a bit more, and then everything going

Yeah, so a lot of this is to help execute on our existing contracts.

A lot of this is to set up this mass manufacturing facility, what

we call the Papa factory, that births all

these mobile micro factories to keep producing case studies. It's

to also produce, I mean, no one gives us enough credit for a

first of a kind mobile micro factory in Eastern Europe. So we have to go launch our

own now, likely in Texas, using some of these proceeds.

So hopefully after this round, we get to

Awesome. Any sort of final words for our audience? Places

you want him to go? Things you want him to check out? Books you

For sure. I will be glad if you'll read

my book. A lot of stuff that I want to mention. We're

waiting. Everybody, the construction work will be in

There we go. Nice. Even I will be able to build a home with the

No, I appreciate it. I think our website is good. It's just

Creators and Guests

Christian Keil
Christian Keil
Host of First Principles | Chief of Staff @ Astranis
Aleh Kandrashou
CEO & Co-Founder at Cuby Technologies, Inc. (Stealth) - Disrupting the $12T+ Construction Industry. Author of the book “The Human Vector”. PhD in innovation Eco
Aleksandr Gampel
Aleksandr Gampel
Cuby is setting the stage to commercialize a network of hundreds of Mobile Micro-Factories (MMFs) erected on or near construction sites.