Modular housebuilder Modulous will formally enter administration today after a “devastating” race to secure more funding took it to what chief executive Chris Bone described as the “end of the cash runway”.

Bone, who said the company was £4m in debt, blamed “the vagaries of the venture capital markets”. He told Housing Today the firm had £30m of pledged funding, but when one funder pulled out and the remainder prevaricated the business “couldn’t bridge the gap”.

Modulous is the latest modular business to fail, following Ilke Homes, House by Urban Splash and last year’s closure of Legal&General’s modular arm. Bone was one of five co-founders of the 52-staff housing business which made all its staff redundant at the end of November.