The Daily Dig
TerraFirma, an Austin-based construction technology company, has raised roughly $115 million, including a $100 million Series A led by Kleiner Perkins. Other investors include Bain Capital Ventures, Glade Brook Capital Partners, and Magnetar Capital, along with angel investors from SpaceX, Anduril, and Base Power. The funding will grow TerraFirma's engineering, manufacturing, and construction teams and support development of its semi-autonomous equipment.
Founded in 2024 by former SpaceX engineers Noah Schochet and Noah McGuinness, TerraFirma points to a steep industry decline as its reason for existing. Since 1965, U.S. construction labor productivity has fallen an average of 0.6% a year, while productivity across the broader economy has grown roughly 1.6% annually. TerraFirma says this collapse has cost the industry the equivalent of roughly $1 trillion every five years.
The company's platform combines AI-enabled pre-construction software with retrofitted machinery, including excavators, dozers, and loaders, that runs without an operator in the cab. Skilled operators instead run multiple machines remotely, a setup TerraFirma says can make each operator up to 300% more effective. Recent work includes site prep and grading for a Starbucks in North Austin, a sports arena in Spicewood, and a power substation in New Braunfels, along with international infrastructure work for the U.S. government.
Snapshot:
Company: TerraFirma
Founded: 2024
Founders: Noah Schochet (CEO), Noah McGuinness (CTO)
Headquarters: Austin, Texas
Funding Raised: Approximately $115 million
Series A: $100 million, led by Kleiner Perkins
Other Investors: Bain Capital Ventures, Glade Brook Capital Partners, BANNER VC, Saga Ventures, Trust Ventures, Definition, PEAK6, Magnetar Capital, Ravelin Capital
Angel Investors: From SpaceX, Anduril, Base Power, Shinkei, Hadrian
Sectors Served: Housing, energy, transportation, manufacturing, education
Equipment Platform: Retrofitted semi-autonomous excavators, dozers, loaders, rollers, skid steers
Operator Model: Remote command-and-control, no cab operator required
Claimed Operator Efficiency Gain: Up to 300%
Recent Commercial Projects: Starbucks site work (North Austin), sports arena (Spicewood), power substation (New Braunfels)
Government Work: International infrastructure and logistics projects
TheJobWalk Thoughts
TerraFirma's claimed 300% operator efficiency gain doesn't guarantee fewer bodies per crew. That gain could show up as faster cycle times, higher machine utilization, or reworked crew structures instead. Still, if any version of that efficiency holds on real jobsites, it puts pressure on how GCs price grading and excavation packages against subs running conventional crews. Worth asking early in Texas bids whether a sub is running this equipment before locking in scope splits.
TerraFirma's government contracts already involve mission-critical work in difficult international environments, and the company is actively pursuing customers for large-scale projects. That points to ambitions well beyond the small commercial jobs named in this release. Subs competing on earthwork pricing should watch how aggressively TerraFirma bids in Austin-area markets. Contract wins, fleet size, and repeat government work are the clearest early signals of how fast this technology reaches real production volume.
