R-Hauz Solutions Inc. Secures $4.5M in Seed Funding
R-Hauz secures funding to increase capabilities in product delivery and technology, invest in supply chain expertise and expand infrastructure in strategic markets.
TORONTO, Nov. 10, 2020 /CNW/ - R-Hauz Solutions, a real estate product start-up, announces that it has closed a C$4.5M Seed round with participation from BDC Capital, R-LABS, corporate investors, and several angel investors from the Toronto real estate industry.
The company focuses on delivering high-quality, purpose-built housing by integrating design and mass-production techniques from manufacturing and automotive industries with City planning frameworks. "Our vision is to develop technologies that enable us to move through site adaptation, design development, and construction in an integrated modern way to drive huge efficiency gains in delivering housing," says Michael Barker, Co-Founder of R-Hauz. "We're excited to accelerate the development of our design-for-assembly strategy and continue investing in streamlining the housing delivery process."
R-Hauz products are higher performing, healthier, and gentler on communities than traditional construction methodologies. To address the increasingly large 'missing middle' infill housing need in Canadian cities, the company provides laneway housing and six-storey townhomes made from mass timber and prefabricated panels—designed and manufactured straight from the factory to be assembled on-site. This approach enables R-Hauz to deliver solutions quickly, affordably, and sustainably.
"Leith Moore and Michael Barker are opening promising perspectives in a market that has been dealing with uncertainty", says Jérôme Nycz, Executive Vice President, BDC Capital. "We are happy to unlock additional capital through our VC Bridge Financing Program to help high potential startups, such as R-Hauz, navigate through to better times".
BDC Capital's VC Bridge Financing Program supports eligible Canadian venture firm-backed companies impacted by COVID-19 and who may not qualify for many of the federal government relief measures. Through this special program, BDC Capital may match, with a convertible note, a financing round being raised through qualified investors.
"R-Hauz is one of the first companies co-created by R-LABS," says George Carras, President of R-LABS and Co-Founder of R-Hauz "It's exciting to bring together great long-term, trusted partners with diverse strengths and work together to deliver game-changing innovation in housing. The BDC investment acknowledges the substantial progress R-Hauz has made and together will help the company grow and supply more innovative housing solutions to address the diverse needs of urban Canadians."
In 2020, R-Hauz commenced its purpose-built rental housing pilot, the first six-storey all wood mass timber residential building in Ontario, a 26,000 square foot residential project located in Toronto, expected to be completed by the end of the year. The company has secured strategic partnerships with local developers, institutional affordable housing developers, and municipal agencies to rapidly develop and deliver market-rate and affordable housing across the Greater Toronto-Hamilton Area.
About R-Hauz
R-Hauz, founded in 2017, is a real estate start-up tackling the housing supply crisis by creating innovative, high-quality housing. The company's approach provides developers and property owners with housing that is sustainable in a faster, more cost-effective, and streamlined way through to completion.
About BDC Capital
BDC Capital is the investment arm of BDC, Canada's bank for entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country's most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions.
About R-LABS
R-LABS builds purpose-driven companies that solve major problems in real estate through technology-enabled ventures. As a Canadian-based partnership, R-LABS works closely with a growing group of institutional investors and entrepreneurs to drive positive industry change and create a better future through innovation in real estate.
SOURCE R-Hauz Solutions Inc.
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