A serial entrepreneur is betting that artificial intelligence can finally solve a long-standing problem in the U.S. housing market: making custom home design affordable and accessible. Nick Donahue, previously founder of the Y Combinator-backed Atmos, has launched Drafted – a new company focused on generating custom floor plans and exterior designs using AI in minutes.
The Problem with Custom Homes
For decades, designing a unique home has been a costly, drawn-out process. Clients face expensive architects or settle for inflexible template plans. Donahue’s earlier venture, Atmos, attempted to bridge this gap by combining human designers with software, but ultimately became “an extremely operational business” that couldn’t fully escape the limitations of traditional design firms. Rising interest rates then made even those designs unaffordable for many.
Drafted: A Second Attempt with a New Approach
Drafted takes a radically different approach. The company operates with no in-house designers, relying instead on proprietary AI models trained on real-world, permitted home plans. Users input their preferences (bedrooms, square footage, etc.), and the system generates multiple design options instantly. Complete plans cost between $1,000 and $2,000.
The economics are compelling: the specialized AI costs less than a penny per floor plan, significantly cheaper than general-purpose AI alternatives. The company’s focus on single-story homes initially streamlines development, with plans for multi-story and lot-specific designs in the future.
Funding and Backing
Drafted has secured $1.65 million in funding at a $35 million valuation, led by Bill Clerico of Convective Capital, along with investments from Stripe’s Patrick Collison and others. Clerico, who previously backed Atmos, was quick to reinvest, recognizing Donahue’s tenacity in the face of market challenges.
Market Potential and Challenges
The custom home market is sizable but fragmented. While one million new homes are built annually in the U.S., only 300,000 are custom designed. Clerico argues that lowering costs and speeding up the process could dramatically increase demand, comparing the potential to Uber’s disruption of transportation.
However, the housing market has historically resisted disruption, and the question remains whether consumers will embrace fully custom designs at scale. The company also faces the risk of copycats leveraging similar datasets to replicate its AI model. Donahue believes brand loyalty, similar to Midjourney’s dominance in AI image generation, will provide a competitive edge.
Early Traction
Drafted has already gained traction, with approximately 1,000 daily users since launching to the public. While not yet a massive figure, the growth is steady for a young product. Donahue’s prior experience in the field gives Drafted a unique advantage: deep insight into the problem and lessons learned from his first attempt.
The success of Drafted will depend on its ability to capture a larger share of the custom home design market by delivering on its promise of affordability, speed, and personalization. The company’s focus on AI-driven efficiency could reshape how people approach home design in the future.
