Beams Raises $9M to Revolutionize UK's Home Renovation Sector
Home renovation projects often present challenges for both customers and contractors. Small contractors typically don't utilize modern software, while larger companies like IKEA rely on outdated legacy systems. Beams, a UK startup, aims to address these issues with its recent $9 million Series A funding round, bringing its total funding to $13.3 million.
Funding and Investment
This funding round was led by ETF Partners, with existing investors such as Giant Ventures, firstminute capital, and Borusan Ventures also participating. The latest investment will help Beams enhance its digital solutions for home renovations.
Innovative Pricing and Design Models
Beams' unique pricing engine predicts the cost and duration of projects by comparing data from over 6,000 past building projects. It uses 3D photography and laser scans to create detailed home models for renovation design.
Origin and Mission
Hayden Wood, Founder and CEO of Beams, was inspired to create the company during his time at renewable energy startup Bulb. He noted, "I saw how much friction existed around making homes more energy-efficient. Projects were often too risky or complicated for consumers, which meant many avoided making improvements altogether." Beams aims to simplify the renovation process and minimize risks, encouraging more homeowners to make eco-friendly upgrades.
A Managed Marketplace
Beams operates as a managed marketplace connecting customers and builders, integrating modern software to streamline and predict home renovation processes. The company vets builders before they join the platform and after each project completion.
Market Position and Competitors
Since launching in September 2023, Beams has sold over £4 million in projects and is currently involved in 130 ongoing renovations, with 25 already completed. While there are competitors like kitchen companies Neptune and leading tradesman websites such as Checkatrade, Wood emphasizes that "no players in the market are building proprietary software that provides an end-to-end solution from planning to build."
Future Prospects and Challenges
With the European renovation market worth £380 billion and £5.5 billion in London alone, Beams plans to accelerate product development and expand its reach across the UK and Europe. In case of economic downturns, Wood states, "We're very close to reaching breakeven, so if the plan doesn’t work out and growth slows, we will stabilize spending and experiment with other business models."
Statements from Investors
Lucy Rands, Partner at ETF Partners, commented on the funding round, stating, "Hayden and the team have built a comprehensive suite of services that go far beyond simple energy assessments. Their solutions seamlessly integrate sustainability and practical home improvements to help modernize the UK and Europe’s aging housing stock."