Modular construction startup Reframe Systems has raised $20 million in Series A funding to scale its AI-driven microfactory model and help address the housing crisis in the U.S. The funding round was co-led by VoLo Earth Ventures and Eclipse Venture Equity, with additional backing from MassMutual, Cubit Capital, Saga Ventures, Nor’easter Ventures, and an RA Capital Management subsidiary. With this new capital, Reframe plans to build one million housing units over the next 20 years by rapidly deploying localized microfactories in areas most affected by housing shortages and natural disasters.
Founded in 2022 by former Amazon robotics engineers Vikas Enti, Felipe Polido, and Aaron Small, Reframe is leveraging automation, physical AI, and robotics to revolutionize the modular construction industry. Its microfactories can become operational in under 100 days and are designed to produce a variety of housing types, including small multifamily units, single-family homes, duplexes, and townhomes. Unlike traditional modular approaches that favor standardized units, Reframe uses AI software to customize housing for local zoning, safety codes, and design requirements, allowing for adaptability at scale.
The company claims it can build five single-family homes per week from each factory, helping to ease the national construction backlog, which has reached nearly nine months. The homes produced are all-electric and aim to serve the “missing middle” — the segment of affordable housing that lies between low-income units and luxury developments.
Reframe already has multiple projects underway. In the Boston area, it’s delivering 20 units in Somerville, 12 single-family homes in Devens, and a tiny home in Woburn. In California, the company is building a bungalow in Altadena and launching a microfactory in a region recently impacted by wildfires.
Modular construction is gaining traction across the real estate sector, especially in multifamily housing, where it represented 8.8% of apartment starts in 2024. With rising demand, modular construction is becoming an increasingly attractive solution due to its faster timelines, reduced labor dependency, and lower costs. Reframe’s momentum also coincides with proposed federal legislation aimed at clearly defining modular housing and enabling the Department of Housing and Urban Development (HUD) to examine how federal financing can support its adoption. As the modular sector continues to evolve, Reframe’s AI-driven approach may position it as a key player in reshaping how affordable housing is built in the U.S.
