Real estate research and data startup Reonomy raised $13 million in its latest fundraising round, The Real Deal has learned.
Bain Capital Ventures, which recently invested in social networking giant LinkedIn and test preparation company The Princeton Review, is leading Reonomy’s Series B round. Existing investors, including Mack Real Estate Group principals William, Richard and Stephen Mack, SoftBank Capital and Resolute Ventures, also upped their bets on the firm.
All told, the Manhattan-based company has raised about $18 million, including $3.7 million in a Series A round in March. “We’re very excited and driven in equal measure,” Reonomy’s co-founder and CEO Richard Sarkis told TRD. The additional capital will be used to bulk up the firm’s engineering and sales capabilities and fuel its expansion into other national and international markets.
Reonomy was founded in April 2013 by Sarkis, a Wharton and McKinsey alum, and Charlie Oshman, a statistics geek who sold real estate intelligence to banks prior to starting the company. The firm is the latest in a flurry of startups targeting the commercial real estate market.
The business’ platform scours through more than 200 public databases and brings together property information such as outstanding mortgages, capital expenditure, Department of Building violations and other metrics that provide users with knowledge of a property and its comparative assets. Many of Reonomy’s competitors, including PropertyShark, provide similar data to their clients.
But Sarkis said that a singular commitment to analysis sets his firm apart.
“Simply collecting a lot of data is not enough,” he said, “so we invest a lot of energy in data science, machine learning and real hard core tech to go beyond the raw data and provide the end users with information that they need.”
Reonomy’s clients include investment sales and debt brokers, major banks and small-to-mid-sized investment funds. Sarkis said that he plans to go after larger investment funds, private equity firms and real estate investment trusts once the firm expands its sales team. Revenue, which comes primarily through subscriptions, is expected to hit the low single millions in 2015, he said.
The $18 million the startup has raised catapults it into a deep-pocketed club of commercial real estate tech startups that includes the likes of CompStak, Honest Buildings, Floored, and View the Space, all of which are based in New York City.