INVEST IN BLOKABLE TODAY!

Revolutionizing Housing Development

After 6 years and over $30 million of investment in R&D and prototyping, Blokable is ready to take on the housing crisis. Having validated its engineering, assembly process, and costs with our Phoenix Rising Development in Auburn, WA, the company is now ready to ramp up Modular Development™ and related manufacturing efforts to create needed multifamily housing, first in California and then across the country and around the world.

This Reg CF offering is made available through StartEngine Capital, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.

$33,223.50 Raised

REASONS TO INVEST

There is a massive housing shortfall in the U.S., and demand continues to outpace supply. In California alone, there are an estimated 3.5 million new housing units needed by 2025.* With such enormous demand, the opportunity for Blokable to develop multifamily housing at scale is almost limitless.

With its state-of-the-art building system that is engineered for manufacturing, Blokable’s multifamily housing is superior in quality but much lower in cost and time to build than traditional development.

Blokable is entering into a lease for a large-scale manufacturing facility in Northern California that it expects to make operational in late 2023.

*Market information provided by McKinsey (source)

The PITCH

Revolutionizing housing development

Blokable is a developer of multifamily real estate – widely considered to be the asset class with the strongest and most attractive fundamentals (source)– using a proprietary modular building system with cutting-edge technology and engineering that can build cheaper, faster, and better. And with Blokable’s highly innovative, vertically integrated business model, the company and its investors have the potential to capture the considerable value created by real estate development.

*The above graphic is a computer-generated rendering of a representative real estate project that can be built with Blokable's building system.

Modular Development™ by Blokable is designed to maximize the efficiencies and value of technology, process, and business model innovation.

*The above video contains graphics that are computer-generated renderings of a representative real estate project that can be built with Blokable's building system.

*The above graphic is a computer-generated rendering of a representative real estate project that can be built with Blokable's building system.

Upon conversion to Blokable equity, your investment enables you to participate directly in the company’s ownership of the numerous real estate projects it develops, giving you the opportunity to be part of the tremendous value creation that is possible from successful real estate development. To date, Blokable has raised over $30M from a world-class group of investors, including Cercano Management (Microsoft co-founder Paul Allen’s venture capital group), Kapor Capital, Jason Calacanis, Marc Benioff (co-founder and CEO of Salesforce), Building Ventures, Revolution Ventures, Third Sphere, Climate Capital, and others.

*The above graphic is a computer-generated rendering of a representative real estate project that can be built with Blokable's building system.

The problem & our solution

Fixing the housing crisis

We believe there’s a simple reason that real estate development has a bad reputation: development is designed to capture and keep wealth for the very few. It’s an inefficient, disorganized, and messy process that suffers from skyrocketing construction costs and a shrinking labor force.

The costs and inefficiencies of traditional real estate development are the fundamental reason for today’s housing crisis (source). Supply is simply incapable of meeting demand, and the shortage and lack of affordability of housing have only been getting worse over time. Innovation and disruption in construction will not bring meaningful change; we must disrupt development itself (source).

Modular Development™ by Blokable is an end-to-end solution that offers a better way forward. It’s one model that addresses the root problems for both market-rate and affordable housing. It’s a wealth creation movement that gives you access to the tremendous upside potential that real estate development offers on an unprecedented scale.

It uses vertical integration and manufacturing and technological advances to compress development costs and time, reduce risks, eliminate the unknowns, and create order from chaos.

It creates higher-quality, environmentally sustainable buildings while achieving efficiencies and scale that the industry has never known.

It revolutionizes development to fix the housing crisis and create wealth for investors, residents, and communities who support and embrace a better way of life.

The Market & Our Traction

Multifamily real estate is a massive industry that is widely considered to have the strongest market fundamentals and long-term outlook. As a result, enormous amounts of capital continue to pour into this asset class. In 2022, multifamily investment volume was reported to be approximately $279 Billion, with multifamily loan originations in 2022 reported to be $459 Billion – these amounts represent by far the largest shares of investment and lending, respectively, of any commercial real estate asset class (source).

Since 2016, Blokable has invested over $30M in building system and manufacturing engineering, regulatory approvals, software systems integration, and prototyping to create a building system that can be manufactured for development of 5-story-over-podium multifamily housing in the State of California, which has the strictest building code requirements in the country. This building system has unparalleled sophistication and flexibility, with the ability to create virtually limitless floor plans and unit types as well as the apartment features that renters expect – including open floor plans, 9-foot ceilings, floor-to-ceiling windows, and expansive balconies. The system also supports highly varied building architecture and aesthetics that can fit into any neighborhood. Whether it is luxury, workforce, or affordable housing, Blokable is designed to be able to meet any market.

Ready for manufacturing

*The above video contains graphics that are computer-generated renderings of a representative real estate project that can be built with Blokable's building system.

The Blokable Building System is “land agnostic,” meaning it can be built in high seismic or high wind zones, in any weather conditions, and on any soil types, without the need for internal shear walls, bracing, or tension rods as structural support. This breakthrough approach allows Bloks, and even an entire building, to vary in size and shape without any change in required engineering or manufacturing, thereby enabling an efficient assembly process that uses a minimum number of parts and creates Bloks that leave the factory approximately 95% complete.

The ability of the system to build projects with up to 5 residential levels represents the vast majority of the multifamily development opportunity in most markets. After completing the Phoenix Rising project in Washington State, Blokable shut down its prototyping facility there to focus on 5-story building system engineering, Building Information Modeling (BIM) and Bill of Materials (BOM) systems development, and to prepare to ramp up manufacturing in California.

During this engineering and systems integration investment period, Blokable partnered with the National Renewable Energy Lab as part of the IN2 initiative to test, validate, and optimize the energy efficiency and performance of the Blokable Building System. As an output of the partnership, NREL published a peer-reviewed technical report indicating that Blokable’s engineering and business model would achieve significant environmental impact by building 10,000 units by the end of 2030 when compared to business as usual multi-family development and construction. A summary of the report findings:

Reduce Greenhouse Gas Emissions by 60%
Reduce Construction Material Waste by 91%
Reduce Vehicle Miles Traveled by 67%
Avoid 2.4 Million Tons of Emitted Carbon

Why Invest

Blokable builds real estate equity for investors and the community

Unlike other modular, framing, or panelized system based companies, Blokable does not sell a product to developers. Blokable develops housing using a more efficient, cost-effective process that maximizes returns, and we receive more favorable tax treatment as an owner of real estate rather than the seller of goods and services. This unique business model can be up to 30 times more profitable than the product sales model that other modular and prefab companies follow.

Blokable and its investors benefit from technological and business model innovations that capture all wealth that the real estate development process can create from cost savings, development fees, refinance proceeds, operating cash flow, and asset sale proceeds. And with our ability to build cheaper, faster, and better, we believe the value of the equity in our projects will be higher than traditional developments, especially as costs for traditional builds continue to escalate.

At scale, the same innovation also provides for the development of affordable housing at a fraction of traditional costs. Not only will this provide much greater housing opportunities for lower-income segments of the population, but through Blokable’s “Affordable To Own” program it will also enable wealth creation among underserved buyers and the community at no cost to Blokable or to government.

(source, source, source, source, source, source)

ABOUT

HEADQUARTERS

1750 Creekside Oaks Dr. Suite 130
Sacramento, CA 95833

WEBSITE

View Site

TEAM

Nelson Del Rio

Co-CEO

Nelson Del Rio has been with Blokable as an advisor since 2016, and became one of the Co-Chief Executive Officers in 2017. Nelson has served as Co-CEO for the last five years, during which time he has been responsible for implementing the business plan for Modular Development, raising the funds necessary to operate the company, guiding development of all product design and prototyping activity, and have negotiated all contracts and relationships. He has personally designed and worked with the team to implement the engineering necessary to achieve Blokable’s Modular Development goals, including the standard and resilient joints, and its build and assembly structures. Nelson graduated from Harvard Law School in 1987 and has been an active and continuous member of the California State Bar since 1987. Nelson began his career as a Merger and Acquisition Attorney at Skadden, Arps, Slate, Meagher & Flom, and then went on to become an active impact investor, developer, and philanthropist. In additional to his retail, land and other type of real estate acquisitions and development, Nelson is best known for his efforts in early single asset securitization, as well as the creation of the public-private partnership, design-build paradigm in use today in connection with government and other facilities. He has used his business, tax, legal, finance, construction, and development background in Blokable to create the same highly efficient development structure he created in the past in commercial development. Nelson has also served on Blokable’s Board of Managers since 2017.

Aaron Holm

Co-CEO, CFO, Secretary

Aaron Holm is one of Blokable’s Co-Chief Executive Officers. Launching Blokable in 2016, Aaron has served in the capacity of Co-CEO since that time, during which time he has been responsible for implementing the business plan for Modular Development, raising the funds necessary to operate the company, guiding development of all product design and prototyping activity, and have negotiated all contracts and relationships. Prior to Blokable, Aaron has founded and led businesses and product teams, notably spearheading Amazon’s first two physical retail businesses, Amazon Go and Amazon Books. Prior to his time at Amazon, Aaron, among other projects, co-founded Mylio, a software startup that protected and organized large libraries of personal photographs and memories. He also co-founded Industrial Color, a global leader in digital media Software as a Service, where he built a world-class team and digital media infrastructure. Aaron was CTO and head of the software business. Aaron has put his deep experience applying advanced technology to transform traditional industries to work at Blokable. He understands the complications inherent to the development of physical space and the opportunity to create the technology and logistics platform necessary to enable Blokable’s Housing Development-as-a-Service model. Aaron has also served on Blokable’s Board of Managers since the Company’s inception.

Stephen Chun

Chief Development Officer

Steve Chun is Blokable’s Chief Development Officer, joining the Company in 2021, where he leads the Company’s real estate development platform and financial efforts. A veteran real estate development and investment executive, Steve brings to Blokable uniquely broad-based, vertically-integrated multifamily expertise that encompasses all phases of the real estate life cycle – from acquisitions and financing to development to asset management and operations. From 2013 to 2019, Steve was Managing Director in the Executive Office of Lerner Enterprises, the largest private real estate developer in the Washington, D.C. market. Prior to Lerner, he was a Vice President from 2006 to 2012 at Woodridge Capital Partners, a leading real estate development and investment firm in Los Angeles with large-scale projects across the United States. In addition to extensive real estate transactional experience, he has highly-diversified residential development experience that ranges from low-density multifamily product to luxury high-rise towers, as well as master-planned residential communities and large-scale mixed-use projects. Earlier in his career, he was a mergers and acquisitions and private equity lawyer at a Wall Street law firm and at Oaktree Capital Management. He holds an M.B.A. from the Tuck School of Business at Dartmouth, a J.D. from the University of Michigan Law School and a B.A. from Dartmouth College.

Timothy Miller

Chief Product Officer

Timothy Miller started at Blokable in 2016, acting in the capacity as Blokable’s Chief Product Officer. Timothy is responsible for all aspects of the Blokable Building System, the backbone of the Modular Development platform, overseeing all aspects of the product engineering and technology teams. Through the lens of architect, human-centric industrial designer, and business strategist, he has successfully created and expanded on customer experience for industry leaders including Boeing, Best Buy, Amazon, and LATAM Airlines. He has worked as a design leader within both agency and corporate environments, most notably with Amazon Go, TEAGUE, and HOK Architects. At Blokable, Tim’s career has come full circle, bringing his unique experience to the challenge of creating a new category of housing.

Jason Calacanis

Board Member

Jason Calacanis is a technology entrepreneur, angel investor, and the host of the popular podcasts This Week in Startups and Angel. As a “scout” for top Silicon Valley venture capital firm Sequoia Capital and later as an angel investor, Jason has invested in 150+ early-stage startups including 6 “unicorns” (billion-dollar valuations). His book “Angel: How to Invest in Technology Startups: Timeless Advice from an Angel Investor Who Turned $100,000 into $100,000,000” was published by HarperCollins in July 2017. He lives in San Francisco, California.

YB Choi

Board Member

YB Choi has been a part of the Cercano Management (previously Vulcan Capital)l team since 2008 focusing on early-stage investments driving core technology innovation broadly across many sectors. Prior to joining Cercano, YB was a manager in the IP Acquisitions and Investments group at Microsoft Corporation. Before joining Microsoft, he was a member of the mergers and acquisitions group at Oppenheimer & Co. (formerly CIBC World Markets) and, earlier, worked in the health care investment banking group at Cowen & Co. YB received his BS in Engineering Management Systems from Columbia University. He advises Venture Investing students at the University of Washington as a W Fund Fellow and is a frequent participant as a judge or panelist at events and conferences focused on early-stage technology investment.

TERMS

Blokable

Overview

INTEREST RATE

6.0%

MATURITY DATE

Apr 1, 2025

VALUATION CAP

$125M

FUNDING GOAL

$25k - $5M

Breakdown

MIN INVESTMENT

$500

DISCOUNT RATE

10.0%

CONVERSION TRIGGER

$30,000,000

OFFERING TYPE

Convertible Notes

TYPE OF EQUITY

Preferred Units

Most Recent Fiscal Year-End

Prior Fiscal Year-End

Total Assets

$826,125

$3,018,413

Cash & Cash Equivalents

$357,137

$2,386,107

Accounts Receivable

Short-Term Debt

$1,333,333

Long-Term Debt

$4,879,807

$1,989,857

Revenue & Sales

$765

$44,937

Costs of Goods Sold

$2,153

$50,477

Taxes Paid

Net Income

-$4,948,607

-$5,454,445

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

What is a Convertible Note?

A convertible note offers you the right to receive Preferred Units in Blokable. The amount of Preferred Units you will receive in the future will be determined at the next equity round in which the Company raises at least $30,000,000.00 in a qualified equity financing. The highest conversion price per security is set based on a $125,000,000.00 Valuation Cap or if less, then you will receive a 10.00% discount on the price the new investors are paying. You also receive 6.00% interest per year added to your investment. When the maturity date is reached, if the note has not converted then you are entitled to receive Preferred Units equal to your investment and interest back at a price per security determined by dividing the Valuation Cap by the aggregate number of outstanding equity securities of the Company as of immediately prior (on a fully diluted basis).

*Annual Interest Rate subject to adjustment of 10% bonus for StartEngine shareholders. See 10% Bonus below.

Investment Incentives and Bonuses*

Combo/Avid Investor Perk

Invest $2,000+ within the first week and receive Monthly investor updates

Invest $5,000+ within the first two weeks and receive Monthly investor updates and your name will be inscribed on the ‘Housing Revolutionaries’ wall in lobby of Factory 1

Invest $10,000+ within three weeks and receive Monthly investor updates, dinner with company leadership in Sacramento and your name will be inscribed on the ‘Housing Revolutionaries’ wall in lobby of Factory 1 + your name will be inscribed on the ‘Housing Revolutionaries’ wall in lobby of 707 E Street.

Amount-Based

Tier 1 | $2,000+

Invest $2,000+ and receive a quarterly investor email update.

Tier 2 | $5,000+

Invest $5,000+ and receive a monthly investor update.

Tier 3 | $10,000+

Invest $10,000+ and receive a Monthly investor update + dinner with company leadership in Sacramento.

Tier 4 | $25,000+

Invest $25,000+ and receive a monthly investor update + dinner with company leadership in Sacramento+ name inscribed on ‘Housing Revolutionaries’ wall in the lobby of Factory 1.

Tier 5 | $50,000+

Invest $50,000+ and receive a monthly investor update + dinner with company leadership in Sacramento + name inscribed on ‘Housing Revolutionaries’ wall in lobby of Factory 1 + name inscribed on ‘Housing Revolutionaries’ wall in lobby of 707 E Street.

Tier 6 | $100,000+

Invest $100,000+ and receive a monthly investor update + all expenses 2-day trip to Sacramento and private dinner with company leadership + Name inscribed on ‘Housing Revolutionaries’ wall in lobby of Factory 1 + Name inscribed on ‘Housing Revolutionaries’ wall in lobby of 707 E Street.

*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.

The 10% Bonus for StartEngine Investors

Blokable will offer a 10% additional bonus interest for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

Eligible StartEngine investors will receive a 10% increase in the annual interest rate on the Series 2023-CF convertible notes, or CF Convertible Notes, being offered in this Offering. This means your annual interest rate will be 6.60% instead of 6.00%.

This 10% Bonus is only valid during the investor’s eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and the time of offering elapsed (if any).

Irregular Use of Proceeds

Example - The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments and salary made to one's self, a friend or relative; Any expense labeled "Administration Expenses" that is not strictly for administrative purposes; Any expense labeled "Travel and Entertainment"; Any expense that is for the purposes of inter-company debt or back payments.

ALL UPDATES

05.23.23

Housing is a Climate Issue - Learn How Blokable Directly Addresses the Environmental Impact of Housing Creation

In 2002, as an output from two years of partnership, the National Renewable Energy Lab published a peer reviewed technical report that outlines Blokable's project environmental impact. You can read the full report here.

In summary, the report indicates that by tapping into the well known 'learning effects' of manufacturing, Blokable is projected to create the following environmental impact by building 10,000 units or 'Bloks' by 2030:

- Reduce Greenhouse Gas Emissions (GHG) by 60%

- Reduce Vehicle Miles Traveled (VMT) in Construction by 61%

- Reduce Construction Material Waste by 91%

- Avoid 2.4 Million Tons of Carbon Emissions

Invest in Blokable today. Investors participate in the growth of Blokable the company and Blokable's ownership in the real estate it develops. Do well by doing good and help tackle one of the biggest economic, social, and environmental problems: housing.

05.18.23

Blokable Shares Groundbreaking Modular Development Approach at the Buildings Conference in Chicago

Traditional modular and prefab construction have been around for decades but have never made a meaningful impact. Blokable's approach can generate 29x the profits of traditional modular or prefab because Blokable builds to own. Generating investor returns for market rate development and affordable to own opportunities for underserved communities sets Blokable apart from traditional modular and prefab construction approaches. Join the livestream and listen in.

On Thursday, May 18 Blokable Co-CEO will discuss how Modular Development leverages the cost and quality advantages of manufacturing to generate real estate equity and wealth. The session will stream live at 1:45 Central Time. Listen in to find out more about the enormous differences between Modular Development and modular construction and learn how Blokable has cracked the code to housing.

The title of the session is: The Nuances of Modular/Prefab: Modular Development & Modular Construction and the Impact on How we Build

05.02.23

The Future of Housing - Learn More About Blokable in our Webinar Series & Invest Today!

Each week, we use our Webinar series to go deeper and deeper into how Blokable's unique Modular Development platform works to create high-quality housing at lower cost. If you've ever wanted to really understand the complexities of housing development and how Blokable has uniquely cracked the code to address both affordability and investor returns, then our Webinar series is for you!

Our next Webinar is scheduled for Wednesday, May 3 at 12 Noon PM Pacific Time - you can register here: https://zoom.us/webinar/84126268080

Webinar # 5 - Blokable – Environmental Impact

In this webinar, we will discuss Blokable's work with the National Renewable Energy Lab and the company's product development and engineering efforts to create a highly energy-efficient building system.1. Efficient to build - Blokable’s partnership with the National Renewable Energy Lab – overview of our work together and the implications of NREL’s technical report on Blokable’s projected impact by 2030. 2. Increasing efficiencies - the opportunity to transition from construction to manufacturing – accessing the latent efficiencies of manufacturing learning effects and impacts on cost and waste. 3. Efficient to operate – high-performance building envelope results in lower cost of operations.

Below, you can view a Playlist of all Webinars - it's a trove of information and a map to how to fix the housing crisis and align the incentives of cost reduction and real estate wealth creation. If you've ever wondered how to fix housing, that's the subject matter our Webinar series covers in depth.

04.26.23

Blokable with Jason Calacanis on This Week in Startups

Blokable Co-CEO Aaron Holm spoke with Jason Calacanis on This Week in Startups. Jason Calacanis is a Blokable investor and a Member of Blokable's Board. In this TWIST podcast, Jason dives into Blokable's history and business model, how the Modular Development process works, and the housing quality that Blokable delivers. The interview details how the Blokable business model works and why Blokable is the answer to the housing crisis. Invest today!

Blokable is revolutionizing housing development - Invest today!

04.19.23

Last Day for Early Investor Perk - Put Your Name Down in History

Today is the last day to have your name added to the list of Housing Revolutionaries on the wall of our next Blokable production facility and in the lobby of our 21-apartment development at 707 E Street in Sacramento. Don't miss out and join the Blokable movement today!

If you could not join our last Webinar - The Power of Advanced Manufacturing - you can watch the full video below. We are using the Webinar series to share the full scope and breadth of Blokable's technology and business model and to get into the details so investors have information as they evaluate our offering.

You can sign up for future Webinars here: https://blokable.com/news/blokable-launches-webinar-series-exploring-modular-development-platform-for-multifamily-housing/

04.14.23

Learn More about Blokable - Register for our Webinar Friday, April 14 at Noon PT

We will be hosting the 3rd installation of our webinar series this Friday, April 14th at Noon PT via Zoom. You can register here: https://us02web.zoom.us/webinar/register/WN_f8R9LwyUSgGcYc0kwJVUJg

Housing, manufacturing, and real estate are deep topics and we're using our webinar series give investors and prospective investors deep answers on how Blokable works and how our approach is a real solution for housing.

You can view the full webinar schedule and register for future webinars at our website here: https://blokable.com/news/blokable-launches-webinar-series-exploring-modular-development-platform-for-multifamily-housing/

For those who weren't able to join the first two webinars, we've added them below so you can view at your convenience:

Webinar 1 - What Makes Blokable Different

Webinar 2 - The Blokable Building System

04.12.23

Invest Today - Put Your Name Down in History

Put your name down in the list of Housing Revolutionaries - inscribed on the wall of our next factory just outside Sacramento, California.

Also, don't forget to sign up for our next webinar on the power of advanced manufacturing - register here: https://us02web.zoom.us/webinar/register/WN_f8R9LwyUSgGcYc0kwJVUJg

For those who missed our first webinar on 'What makes Blokable Different,' we've posted it to YouTube:

04.11.23

Invest Today in Blokable - A Real Solution for Housing

Invest today to earn your Owner's 10% bonus and to access early investor perks:

Reasons to Invest:

Raised over $30M to date from world-class investors - Cercano Management, Kapor Capital, Marc Benioff, Revolution Ventures, Building Ventures, Jason Calacanis
Ability to manufacture high-quality, environmentally-sustainable multifamily housing at much lower cost and time
Cutting-edge building system that can go up to 5 stories and exceeds the toughest codes, including California seismic
Massive environmental and social impact
Highly experienced and accomplished leadership team
Scalable technology and model – an attainable solution to spiraling housing costs

The Blokable Building System

Description

In this webinar, we will cover the Blokable Building System

Features and capabilities
Evolution through prototyping phases
Standardization to enable real estate development and manufacturing
Variability in architectural application

04.07.23

Perks are live for a limited time - invest today!

We have some fantastic and unique perks for early investors. Don't miss out - invest today!

Investment Incentives

Invest $2,000+ within the first week and receive Monthly investor updates

Invest $5,000+ within the first two weeks and receive Monthly investor updates, and your name will be inscribed on the ‘Housing Revolutionaries’ wall in the lobby of Factory 1

Reminder that our Webinar series kicks off tomorrow, Friday, April 6th at Noon PT / 3pm ET

Webinar # 1 - There have been many approaches and attempts at housing innovation, including modular, prefab, and 3D printing. So, what makes Blokable different?

Space is limited, so please register early using this link: https://us02web.zoom.us/webinar/register/WN_ThH-a5_cStyH_3Q0TztEKA

04.06.23

Blokable closes $5.5M in financing led by Cercano Management and Kapor Capital

April 5, 2023 – Blokable has closed $5.5 million in additional funding led by existing investors Cercano Management (previously Vulcan Capital) and Kapor Capital, with additional participation from Climate Capital and Jason Calacanis's Launch Fund.

“Supply chain shocks, inflation pressure, and turmoil in the banking system have exacerbated the generational crisis in housing access and affordability. Not only have real estate financing costs increased, but labor and materials are also more expensive,” said Blokable Co-CEO Nelson Del Rio. “Add to it the fact that soaring real estate costs will continue to outpace income growth, and it becomes clear that under a business-as-usual scenario, the market cannot supply nearly the amount of housing that society requires.”

“The per-door cost of new housing development can only be meaningfully reduced by tapping into the well-understood efficiencies of manufacturing,” continued Blokable Co-CEO Aaron Holm. “With an estimated 3.5 million new housing units needed in California alone by 2025, the market urgently needs a different approach. This is why Blokable has spent the past 6 years and invested over $30 million in R&D and prototyping to reframe the development process itself and to leverage the inherent efficiencies of advanced manufacturing through a platform we call Modular Development.”

Through its vertically integrated Modular Development platform, Blokable controls the entire real estate process, including design, planning, financing, permitting, manufacturing, delivery, and final assembly. To reduce build times and costs while setting a new standard for housing quality, Blokable created the Blokable Building System, which is designed for manufacturing and engineered to exceed the toughest building codes in the most demanding submarkets in the country. With Modular Development, Blokable can produce all-electric, Net Zero Energy Ready housing that can meet the needs of different sites and development programs, including large-scale Class A market rate, urban infill, and affordable housing. In 2022 the U.S. National Renewable Energy Lab (NREL) independently tested the Blokable Building System and reported that Blokable’s development platform will be able to reduce 60% of greenhouse gas (GHG) emissions and 91% of material waste from net-zero housing development by the year 2030.

Blokable previously validated its engineering, assembly process, and costs with its Phoenix Rising pilot project in Auburn, Wash. The project cost 50% less than the regional cost per door to build and operates at a much lower cost to heat and cool than traditional buildings. Blokable is now ready to ramp up Modular Development and scale its manufacturing efforts to create needed multifamily housing, first in California and then across the country and around the world. Modular Development can provide robust, long-term returns to investors due to technological and business model innovations that capture all wealth that the real estate development process can create from cost savings, development fees, refinance proceeds, operating cash flow, and asset sale proceeds. With Blokable’s ability to build cheaper, faster, and better, the equity value in its projects will be higher than traditional developments, especially as costs for conventional builds continue to escalate. When Blokable reaches full-scale advanced manufacturing, its next factory is expected to produce enough modular units (Bloks) to build over 2,000 apartments yearly with a projected aggregate market value of well over $1 billion. And with its highly scalable manufacturing process and building system, Blokable can expand into a network of factories across the country and worldwide.

At scale, Blokable’s platform can also provide affordable housing development at a fraction of traditional costs. Not only will this drive social equity by dramatically expanding housing opportunities for lower-income segments of the population, but through Blokable’s “Affordable To Own” program, it will also enable wealth creation among underserved households and the community at no cost to Blokable or the government.

“Historically, real estate innovation has been misapplied, focusing on technology inputs that are easily commoditized and do not meaningfully reduce development costs,” said YB Choi, Partner at Cercano Management. “What’s unique about Blokable is that it has achieved the optimal application of innovation and technology into the value creation capabilities of real estate.”

“Real estate is the only product in the world that appreciates in value after it is completed,” added Del Rio. “With our Modular Development platform, Blokable is creating wealth for investors and communities by enabling them to participate in the appreciation of our core innovation. Unless you are creating value by developing and owning a brand new kind of multifamily real estate, you can’t return the investment that’s required to innovate in the housing sector.”

Stack Owner's Bonus & Rewards!

Members get an extra 10% shares in addition to rewards below!

REWARDS

Multiple investments in an offering cannot be combined to qualify for a larger campaign perk. Get rewarded for investing more into Blokable.

$500

StartEngine Owner’s Bonus

This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.

$2,000

Tier 1

Invest $2,000+ and receive a quarterly investor email update.

$5,000

Tier 2

Invest $5,000+ and receive a Monthly investor updates.

$10,000

Tier 3

Invest $10,000+ and receive a Monthly investor updates + dinner with company leadership in Sacramento.

$25,000

Tier 4

Invest $25,000+ and receive a Monthly investor updates + dinner with company leadership in Sacramento+ name inscribed on ‘Housing Revolutionaries’ wall in the lobby of Factory 1.

$50,000

Tier 5

Invest $50,000+ and receive a Monthly investor update + dinner with company leadership in Sacramento + name inscribed on ‘Housing Revolutionaries’ wall in lobby of Factory 1 + name inscribed on ‘Housing Revolutionaries’ wall in lobby of 707 E Street.

$100,000

Tier 6

Invest $100,000+ and receive a Monthly investor updates + all expenses 2-day trip to Sacramento and private dinner with company leadership + Name inscribed on ‘Housing Revolutionaries’ wall in lobby of Factory 1, name inscribed wall in lobby of 707 E

JOIN THE DISCUSSION

0/2500

Shane Rockett

a month ago

Hello! 1) Can you walk us through the rationale for offering convertible notes instead of straight equity? 2) Are you worried about a cyclical downturn in the housing market? It seems like there would be a lot of capital tied up with a factory and assembly line that may be inactive if demand wanes or rates stay high. 3) Can you provide any details on upcoming projects/developments or where you plan to source them?

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David Lo

2 months ago

Pls explain what it means by "charges to Issuers a fee consisting of a 5% commission " in the FEE And COMPENSATION DISCLOSURES section. Would the 5% come from my investment or is it from your own cash reserve?

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Paul Weaver

2 INVESTMENTS

2 months ago

Phoenix Rising project was completed in 2020, what has been happening with the company since then? Have you broke ground on Factory 1 or close to it? Thanks

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Daniel Carrasco

4 INVESTMENTS

2 months ago

IPO...This question will no doubt be brought up at some point in the comments section. So what kind of exit strategies do you have? I know it be down the road before making an IPO but do you have a rough estimate of when that'll be?

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Felix Vayssieres

37 INVESTMENTS

2 months ago

Hello, I've got a couple of questions. 1) How did you determine your $125M valuation? 2) There have been a lot of high profile failures in the factory built home space like Katerra, ZETA Communities, and Pulte Homes's house factory in Manassas VA that shut down after three years of operation. Why have other companies failed and what are you doing differently that will allow you to succeed? 3) Considering prefab and modular housing has existed for decades now, why are they still a minority of new housing and have yet to make a big impact on the housing affordability crisis? Why is that going to change now or what are you going to do different? 4) How do you compare to other companies doing modular building and development like Factory OS and Green Canopy NODE? 5) There's no link to your upcoming webinars. Please post the link and please post recordings afterwards. Thanks

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Kenneth Schrier

2 months ago

Not sure I understand the investment. Instead of offering shares in the company, you are offering a 6% annual return on whatever we choose to invest?

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HOW INVESTING WORKS

Cancel anytime before 48 hours before a rolling close or the offering end date.

WHY STARTENGINE?

REWARDS

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SECURE

Your info is your info. We take pride in keeping it that way!

DIVERSE INVESTMENTS

Invest in over 200 start-ups and collectibles!

How much can I invest?

With Regulation A+, a non-accredited investor can only invest a maximum of 10% of their annual income or 10% of their net worth per year, whichever is greater. There are no restrictions for accredited investors.

With Regulation Crowdfunding, non-accredited investors with an annual income or net worth less than $124,000, are limited to invest a maximum of 5% of the greater of those two amounts. For those with an annual income and net worth greater than $124,000, he/she is limited to investing 10% of the greater of the two amounts.

When will I receive my shares?

At the close of an offering, all investors whose funds have “cleared” by this time will be included in the disbursement. At this time, each investor will receive an email from StartEngine with their Countersigned Subscription Agreement, which will serve as their proof of purchase moving forward.

Please keep in mind that a company can conduct a series of “closes” or withdrawals of funds throughout the duration of the campaign. If you are included in that withdrawal period, you will be emailed your countersigned subscription agreement and proof of purchase immediately following that withdrawal.

What will the return on my investment be?

StartEngine assists companies in raising capital, and once the offering is closed, we are no longer involved with whether the company chooses to list shares on a secondary market, or what occurs thereafter. Therefore, StartEngine has no control or insight into your investment after the close of the live offering. In addition, we are not permitted to provide financial advice. You may want to contact a financial professional to discuss possible investment outcomes.

Can I cancel my investment?

For Regulation Crowdfunding, investors are able to cancel their investment at any point throughout the campaign up until 48 hours before the closing of the offering. Note: If the company does a rolling close, they will post an update to their current investors, giving them the opportunity to cancel during this timeframe. If you do not cancel within this 5-day timeframe, your funds will be invested in the company, and you will no longer be able to cancel the investment. If your funds show as ‘Invested’ on your account dashboard, your investment can no longer be canceled.

For Regulation A+, StartEngine allows for a four-hour cancelation period. Once the four-hour window has passed, it is up to each company to set their own cancelation policy. You may find the company’s cancelation policy in the company’s offering circular.

Once your investment is canceled, there is a 10-day clearing period (from the date your investment was submitted). After your funds have cleared the bank, you will receive your refund within 10 business days.

Refunds that are made through ACH payments can take up to 10 business days to clear. Unfortunately, we are at the mercy of the bank, but we will do everything we can to get you your refund as soon as possible. However, every investment needs to go through the clearing process in order to get sent back to the account associated with the investment.

What is the difference between Regulation Crowdfunding and Regulation A+?

Both Title III (Regulation Crowdfunding) and Title IV (Reg A+) help entrepreneurs crowdfund capital investments from unaccredited and accredited investors. The differences between these regulations are related to the investor limitations, the differing amounts of money companies are permitted to raise, and differing disclosure and filing requirements. To learn more about Regulation Crowdfunding, click here, and for Regulation A+, click here.

More FAQs

RAISED

$33,223.50

INVESTORS

MIN INVEST

$500

VALUATION CAP

$125M

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IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. INVESTMENTS ON STARTENGINE ARE SPECULATIVE, ILLIQUID, AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.

www.StartEngine.com is a website owned and operated by StartEngine Crowdfunding, Inc. (“StartEngine”), which is neither a registered broker-dealer, investment advisor nor funding portal.

Unless indicated otherwise with respect to a particular issuer, all securities-related activity is conducted by regulated affiliates of StartEngine: StartEngine Capital, LLC, a funding portal registered here with the US Securities and Exchange Commission (SEC) and here as a member of the Financial Industry Regulatory Authority (FINRA), or StartEngine Primary, LLC, a broker-dealer registered with the SEC and FINRA/SIPC . You can review the background of our broker-dealer and our investment professionals on FINRA’s BrokerCheck here. StartEngine Secondary is an alternative trading system regulated by the SEC and operated by StartEngine Primary, LLC, a broker dealer registered with the SEC and FINRA. StartEngine Primary, LLC is a member of SIPC and explanatory brochures are available upon request by contacting SIPC at (202) 371-8300.

Investment opportunities posted and accessible through the site are of three types:

1) Regulation A offerings (JOBS Act Title IV; known as Regulation A+), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Primary, LLC (unless otherwise indicated). 2) Regulation D offerings (Rule 506(c)), which are offered only to accredited investors. These offerings are made through StartEngine Primary, LLC. 3) Regulation Crowdfunding offerings (JOBS Act Title III), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Capital, LLC. Some of these offerings are open to the general public, however there are important differences and risks.

Any securities offered on this website have not been recommended or approved by any federal or state securities commission or regulatory authority. StartEngine and its affiliates do not provide any investment advice or recommendation and do not provide any legal or tax advice with respect to any securities. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. StartEngine does not verify the adequacy, accuracy or completeness of any information. Neither StartEngine nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, or completeness of any information on this site or the use of information on this site. See additional general disclosures here.

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Canadian Investors Investment opportunities posted and accessible through the site will not be offered to Canadian resident investors. Potential investors are strongly advised to consult their legal, tax and financial advisors before investing. The securities offered on this site are not offered in jurisdictions where public solicitation for offerings is not permitted; it is solely your responsibility to comply with the laws and regulations of your country of residence.

California Investors Only – Do Not Sell My Personal Information (800-317-2200). StartEngine does not sell personal information. For all customer inquiries, please write to contact@startengine.com.

StartEngine’s Reg A+ offering is made available through StartEngine Crowdfunding, Inc. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view StartEngine’s offering circular and risk associated with this offering.