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Wells Fargo Strategic Capital and Citi Ventures also participated in the round along with existing investor Sapphire Ventures. The financing nearly doubles the amount of funding previously raised by New York-based Reonomy for a lifetime total of $128 million, according to the seven-year-old company. It last raised $30 million in June 2018 Series C led by Sapphire Ventures.
Reonomy’s self-proclaimed mission is “to become the primary source of data and analytics for commercial real estate.” It uses machine learning and artificial intelligence to give its users access to “in-depth property details and analysis across the US,” per its website.
Today, over 100,000 users have access to the platform’s information, which according to the company consists of more than 50 million properties, 80 million companies, 300 million people, 38 million mortgages, and 68 million property sales.
Reonomy co-founder and CEO Rich Sarkis told me he was initially laser-focused on crunching and validating “lots of public and private (CRE) data so that everyone from the broker, lender and developer could use it to do their jobs more effectively.”
The platform can do things like help developers find three contiguous lots zoned in a certain way, for example, or determine what rights they have to build luxury condos in specific area. It can also help brokers find deals for their clients as well as motivated sellers and buyers, Sarkis said.
Regionally, Reonomy’s focus was at first on the New York market but has since expanded to cover all the major metros of the United States, which was not an easy task until the company turned to using machine learning and AI, according to Sarkis.
The data, he said, was unstructured and siloed. The goal was to create a category of “property intelligence” so that all the players that deal with and interact with properties (from retailers, occupiers, insurance companies and brokers) could access a platform that connected all that data together.
“We were able to build a system of resolving any record in a public and private dataset,” he said. “That was three years ago, and a groundbreaking moment for us.”
Since then, Reonomy has seen its growth accelerate to the tune of “more than doubling revenue” year-over-year, according to Sarkis. It’s also quadrupled its headcount to over 100 compared to about 25 two years ago.
With its new funding, Sarkis said the company is eager to expand its scope even further, and “scale” its products to Canada, the United Kingdom and other global markets. It also plans to expand its machine learning capabilities and applications.
In a former life, I used to cover commercial real estate. It’s a massive industry with lots of moving parts, and there’s more and more venture money being pumped into it. For example, in September, I wrote about Biproxi, a commercial real estate (CRE) transaction platform aiming to be the “Zillow of commercial real estate,” among other things, raising $10 million in a seed round led by Greycroft.
Illustration: Li-Anne Dias