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Acre Designs

Acre Designs

Zero-Energy Smarthomes. Sustainable. Affordable. Inspired.

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Deal Type

SAFE Note

Funding Goal

$1,000,000

Current Reservations

$2,231,000

Minimum Reservation

$10,000

Deal Stage

Bridge to Series A

Valuation Cap

$12,000,000

Conversion Discount (%)

20%

Open Date

11/14/2017

Closing Date

05/31/2018

Elevator Pitch

Acre is remaking the future of homes. The most sustainable, affordable, and tech-enabled home on the market. Built 70% faster, costing 30% less than typical homes, and completely powered by the sun.

KPIs

$27,000,000 Sales
30 Users
8 Employees

Company Overview

As a family’s biggest purchase, the place we live out daily life, and our footprint on the world, a home should be so much more. Acre creates homes that are affordable, inspired, and make a healthy, positive impact on people and the planet.

Acre is a Y-Combinator company creating beautiful smarthomes, powered by the sun. We bring together the most advanced materials and technologies, for a home that functions like a modern product should. Our flat-pack build system is 70% faster than typical construction, creating superior homes at, or below, market rate.

Company Mission

Acre creates homes that are Built for Life. We exist to bring housing into the future, and good design into reach for more people.

Problem

The way homes are designed, built, and operated hasn’t improved in decades. The industry has failed to change, with productivity falling by half since the 1960s. Homeowners pay the price, quite literally, through severe housing shortages, housing unaffordability and a decreased quality of life.

Moreover, homes consume about 40% of the energy in the US, and American households consume more power than any other industrialized country. In 2020, new California NetZero energy requirements will make existing construction methods obsolete, and further challenge legacy builders.

Solution

Smart, beautiful, tech-driven homes:

  • Turnkey: delivered as a flat-pack kit for rapid assembly.
  • Cost-Competitive with standard construction.
  • Zero-Energy: all-electric and powered by the sun.
  • Inspired: a modern consumer product, from purchase through ownership.

Metrics & Momentum

  • 43 pre-sales, valued over $27M
  • 140% YoY growth
  • Solid 36% gross margins
  • 2 built prototypes
  • 10 home designs, starting a $425K
  • Options for Garages & ADUs (guest homes)
  • $1.75MM raised in funding to-date
  • Strategic growth in Napa/ Sonoma fire rebuild areas

Acre Homes

Acre delivers turnkey, fully-built homes direct to consumers. In the future, we scale by providing builders & developers a complete, ready-to-assemble building system.

Core Technology

The home itself is a technological innovation, and the systems are designed to work as a holistic system. Acre's core technology, the zeroBOX, is a single plug-and-play appliance that provides all of the home's services and eliminates the 6 costliest jobsite trades (power, HVAC, filtered hot/cold water, smart home controls, solar, fire suppression). Patent Pending.

Competitive Advantage

Acre is scalable, with a low overhead/low capital requirement model that can leverage an existing and distributed workforce (a la Uber). Because we can use distributed labor, we expand rapidly into new markets with low capital needs.

We are product people, through and through.

We blend backgrounds in architecture, construction and industrial design to completely reimagine the home.

We are a family, making homes for other families.

Acre started where any good company should: with our own problem. We are a husband-and-wife-team who looked at our home, our daughters, and our goals and realized it didn't add up. So we decided to join with a lifelong friend and builder, and change the equation for families everywhere.

B2C: Californians building or buying a home. Similar to Tesla demographic: 35-65, upper middle income, interest in tech, sustainability, design.

As we scale, we shift to more of a B2B model, working with third party builders.

B2B: California mid-scale home builders doing 20-1500 homes/ year. Looking to get ahead of a fast changing industry.

IMMEDIATE & FOCUSED TARGET

Fire victims rebuilding in Sonoma & Napa counties. These customers were not prepared for a construction project, and appreciate our simplified process, speed to permit, rapid build.

It's an ideal segment since regulation, fees, and permit duration are all greatly reduced.

MARKET SIZE

The US new home construction market is about 1.2M homes per year, over $450 Billion.

California builds 150,000 new homes per year, about $86 Billion.

Traction

  • 144% YoY Sales Growth

    January, 2018
  • Pre-Sold 39 Homes- $27MM Revenue

    April, 2018
  • $71.5M in Sale Pipeline

    February, 2018
  • Completed Design and Engineering on 20 products, including 10 homes, garages and multiple Accessory Dwelling Units (ADUs).

    January, 2018
  • Average Purchase Value Up 32% to $733K

    February, 2018
  • Margins up 57% YoY.

    February, 2018

Pitch Deck

Press Mentions

Key Customers & Partners

Miele Loxone Premier Alpen Nanawall

Testimonials

Mark Griffin, Acre Homeowner
Mark Griffin, Acre Homeowner
"“We feel that a dream home is one that allows you to live your dreams. Everything Acre does tied together with what we’ve been wanting.”"

Previous Funding

  • $375,000 SAFE Note
  • Raise Source: Investors
  • March 2016
  • $360,000 SAFE Note
  • Raise Source: Investors
  • August 2016
  • $426,000 SAFE Note
  • Raise Source: Investors
  • March 2017

Frequently Asked Questions

Who do you sell to?

Acre delivers turnkey, fully-built homes direct to consumers. In the future, we scale by providing builders & developers a complete, ready-to-assemble building system.

How much inventory do you carry?

None. We operate with customer cash and within standard construction lending draws. At all points during a project we are cash positive.

What are gross margins

36%

Are you capitally intensive?

No. Relative to product, we are incredibly lean. We have simple warehouse operations, a small team of designers and project managers, and a small production crew. Warehouse space is our primary overhead cost, and scales with demand.

Are permits a challenge?

They can be, and we avoid this by focusing in select areas. Fire rebuilds in Napa/Sonoma have condensed requirements, and we are focusing there to short-circuit a difficult process (while helping families in need!)

Are you PreFab?

No, we are leaner and more scalable than both prefab and traditional construction. We've turned beautiful, net zero homes into a flat pack product that can be built 70% faster than traditional construction.

Risks & Disclosures

This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in Acre Designs’s profile.

Documents

Confidential

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