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NEW YORK CITY – Reonomy, a real estate technology data platform, has closed a $60M Series D funding round. The raised capital will go to its platform expansion globally, technology innovation for nimble end-user engagement and to meet the rising demand for predictive analytics, Reonomy CEO Rich Sarkis tells GlobeSt.com.
After seven years of servicing the commercial real estate market, Reonomy clients have called for the company to expand to Canada and the U.K. and provide predictive analytic capabilities for market navigation entering 2020 as they take inventory of their portfolios.
“The big demand in the market place is ‘how can you as a proptech data company help me to see more clearly in front of me,” Sarkis said. “We’re shifting from data analytics to insight, from being a property data company to a property intelligence company,” he said.
Reonomy clients include insurance companies, lenders, retailers and occupiers, who use the company as a central data platform compatible with other third-party data providers. Business is booming for the proptech firm, which has experienced doubled top-line growth year-over-year for the past several years and a tripled headcount over the past 12 months.
Reonomy applies client feedback and guidance from Georgian Partners, the venture capital firm that led its $60 million Series D fundraising and has invested in multiple companies deploying the AI, to innovate its deployment of that technology along with machine learning to comb its proprietary data to then present it in a nimble format, which is all done by engineers on the back end.
And as the firm thinks about the platform’s data covering various asset types and submarkets, it is exploring how to further develop its artificial intelligence and machine learning capabilities to make it easy for end-users to interface with its application and for reliability and accuracy to make business decisions as it builds out its predictive analytics capabilities.
“Any company that interacts with and deals with properties across their core business, are asking what’s the next hot submarket or place to open a store or close one, and looking for systems to analyze data, and augment it with other property data,” Sarkis said.
In addition to innovating existing technology, Reonomy is kicking it up a notch, and launching its version of an automated valuation model to provide real estate property valuations for property models, including proforma modeling, and interoperability with other databases. Most AVMs calculate a property’s value at a specific point in time by analyzing values of comparable properties, helpful to antsy investors, Sarkis said.
“Real estate companies have spent millions of dollars to develop systems and processes to tap insights, for us, it’s important to weaponize our clients with actionable data – that’s where the gold is,” Sarkis said.