Vestack raises €10M+ to become a leader in low-carbon construction

“A technological revolution is needed to reconcile sustainable construction and affordable housing,” say Sylvain Bogeat, Nicolas Guinebretière and Jean-Christophe Pierron, co-founders of Vestack.

This new funding round of more than 10 million euros is led by the first impact private equity fund of Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable finance, accompanied by Ring Mission, the VC Impact fund of Ring Capital , and Karista through the Paris Region Venture Fund. It will allow the company to accelerate:

• The development of new functions of its digital design software,
• R&D work on the construction system and the marketing of new products,
• Increasing production capacity by financing the opening of new assembly sites and establishing subcontracting partnerships.

These developments will enable Vestack to become a technological leader in the design and construction of low-carbon buildings.

Vestack had been supported by the Paris Region Venture Fund during a previous fundraising in 2020, which enabled the company to develop its design-build solution, and to open a first assembly site in Seine et Marne. . The company built its first projects and signed nearly twenty contracts in a booming market under the effect of the RE2020 regulations.

Vestack leverages digital design technology and modular construction to transform the way our cities are built. The company thus enables its client developers to construct buildings with a carbon footprint three times lower, twice as quickly, and at no additional cost compared to traditional construction. Greentech1 builds buildings dedicated to collective residential, housing and the tertiary sector (offices, nurseries) up to five floors. Founded in 2019, the company now has around forty employees at its various sites in Île de France.

The solution developed by Vestack is based on two innovations. On the one hand, the company has developed software to facilitate the design of a digital twin of the building (Building Information Model)2 which is then broken down into production instructions. This design for manufacturing3 approach makes it possible to anticipate the specificities of modular construction, from the first sketches of the building. The group also carries out the off-site construction of the modules in the form of floor panels and walls in biosourced materials.

The productivity gains generated by digitization, industrialization and robotization absorb the additional costs linked to the use of materials that are more respectful of the environment. Modular construction also promotes the eco-design of buildings by optimizing the use of resources and reducing logistics flows, as evidenced by the multiple labels granted to the solution. Off-site construction also reduces the nuisance associated with construction sites, the duration of which is halved.

Joanna Parent, Chief Investment Officer at Mirova's first Private Equity Impact fund says: “The objective of Mirova's environmental impact private equity strategy4 is to accelerate the scaling up of innovative and positively impactful environmental solutions. A quarter of global greenhouse gas emissions and 75% of waste are linked to the building sector5. The issue addressed by Vestack is crucial to controlling our carbon emissions in the coming years and we are particularly happy to support them”.

Charlotte Lafont, Principal, Ring Mission: “Vestack's mission, which consists of democratizing low-carbon construction by reconciling respect for the environment, social impact in response to the housing crisis and the economic challenge linked to the competitiveness of low-carbon solutions compared to traditional constructions is part of perfectly into Ring Mission's thesis. We are delighted to partner with Karista and Mirova to support Vestack in this ambition."

Benjamin Zerbib, Investment Director, and Yvan-Michel Ehkirch, Managing Partner, Karista: “We are proud to support since 2020 Vestack with the Ile-de-France Region in its mission to become a leader in low-carbon construction. These new means should make it possible to increase production capacities and confirm Vestack's positioning as a key player in the sector. We are delighted to welcome Mirova and Ring for this new phase."