Tech founders who think they know better than builders stumble on the basics
Curtis Wong says his mix of building and SpaceX experience sets him apart as he bets factory-made apartments can cut costs.
Business Insider · Meet Cloud Apartments, a startup that promises lower-cost living in factory-made units thanks to backing from a 25-year VC veteranCurtis Wong, 33, once worked at SpaceX and earned a business degree from Harvard, founded Cloud Apartments in 2021, when rents were rising fast, to build rental apartments with factory methods. Reflecting on other construction startups, he pointed to attitude.
"I'm from tech, I'm smarter than all these fools in construction, we'll do it ourselves," Wong said, describing how he believes many founders think.
In Wong's view, that belief is both arrogant and false. He said he rejects the idea that tech people are smarter than builders, saying, "I don't think any of those are true," though he added that tech still has an important role. He argues that companies that try to reinvent building on their own then "mess up on the basics, such as pouring concrete."
Wong argues that his own mix sets him apart: time spent on building projects and property development as well as work in tech. "All I do is obsess over this," he said of cutting housing costs.
His example is Cloud itself. Partner factories, including a modular builder named Autovol, make apartment units on an assembly line from raw materials and ship them to building sites, where engineers and construction experts stack them into a high-rise. Wong says the approach borrows factory methods common in detached-house building.
Wong said prefabrication "lets you sprint through" assembly, and he expects the shorter schedule to cut costs sharply. That saving has not been shown yet, because no Cloud building exists. In San Jose, where Cloud plans a 200-unit building, Wong is targeting $340 for each square foot, while he puts the typical San Jose figure at $475. Wong said the $475 figure comes from local general contractors. The company is still waiting for city approvals to start building.
The plan has drawn early backing. Tim Connors, who once invested at Sequoia and has spent 25 years in venture capital, led a $3 million round for Cloud that Wong said would pay for more engineers, construction experts, and designers.
Questions people ask
What does modular or factory-made construction actually mean?
Modular construction means making large parts of a building indoors, in a factory, then trucking them to the site for assembly. The units can be nearly complete rooms or apartments that get stacked and connected, which can save time because work happens in any weather and many tasks happen at once.
Why is pouring concrete so easy to get wrong?
Pouring concrete sounds simple, but it requires exact mixes, timing, temperature control, and curing to reach full strength. Mistakes can cause cracks, weakness, or delays, and on a large building the fix can be expensive and slow.
Who is funding Cloud Apartments?
Tim Connors, a former Sequoia investor with 25 years in venture capital, led a $3 million round for Cloud that closed on a Monday. Wong said the Bay Area company would use the money to hire more engineers, construction experts, and designers.