Construction firm Katerra Inc. had bragged of "breaking new ground in the building industry," but its recent bankruptcy filing in the Southern District of Texas was a more recognizable collection of issues. Potential over extension, pandemic-driven problems, questions about accounting procedures, and then tumbling support by wary investors complicated business as usual for the six-year-old company with nearly $3 billion invested in the startup.

Its largest investor is the Softbank Vision Fund, which three months ago saw another major bankruptcy in its portfolio: Greensill Capital, which fell apart in March 2021 amid questions about accounting practices, according to the New York Times. SVF had invested about $1.4 billion of the total Katerra financing according to court records. Katerra did not respond to a request for information or an interview before publication, but it would be unusual for a company to discuss an ongoing case.

"In pursuit of a fully integrated business model, Katerra has acquired more than twenty companies that are leaders in their sector of the construction industry, including in general contractor business specializing in commercial, residential, and multi-family projects," declared Marc Liebman, Katerra's chief transformation officer in a filing.