There’s a lot of commercial real estate – and a lot of commercial real estate deals going down – in New York and someone has to keep track of it all. Reonomy enables lenders, brokers and investors to win more business, close more deals and make better and faster decisions by combining comprehensive and validated data with powerful analytics.
“Since founding Reonomy 18 months ago, we have built an industry-leading technology platform that provides critical data and proprietary information tocommercial real estate investors, lenders and brokers,” explained Rich Sarkis.
That’ll get you a $13M Series B, with participation from some of the top investors in tech. The round was led by Bain Capital Ventures with participation from existing investors SoftBank Capital, Resolute Ventures, High Peaks Venture Partners, KEC Ventures and FinTech Collective and Solon Mack Capital.
Reonomy collects, analyzes and validates a vast array of property and market level data on a continuous basis and delivers this information in an easy-to-use web-based interface.
Sarkis talks about the funding and the plan for the very near future.
Who were your investors and how much did you raise?
We raised $13 million in a Series B funding round. The round was led by Bain Capital Ventures with participation from existing investors SoftBank Capital, Resolute Ventures, High Peaks Venture Partners, KEC Ventures and FinTech Collective. Solon Mack Capital, the family office of William Mack, Richard Mack and Stephen Mack, also participated in the round of funding. Bill Mack is Chairman of Mack Real Estate Group and Mack-Cali Realty and former Chairman of AREA Property Partners.
Tell us about your service.
Reonomy’s platform simplifies commercial real estate property and market-level research. By combining comprehensive and validated data with powerful analytics. Reonomy enables lenders, brokers and investors to win more business, close more deals and make smarter and faster decisions.
How is it different?
We’ve built an incredibly powerful back-end technology system to collect and crunch all the data that our clients need, and we deliver it to them in an elegant and user-friendly interface. This has led to exciting growth, with many of the leading brokerages, banks and investment funds already using Reonomy to gain a competitive edge. We plan to use this capital to grow our team to continue to meet this demand and to expand into new domestic and international markets.
What market you are targeting and how big is it?
Targeting the Commercial Real Estate Data and Analytics market. Main client segments are Commercial Lenders (primarily Banks), Brokers (both investment Sales and Mortgage Brokers), and Investment Funds.
What markets do you cover and where do you plan on expanding to next?
We are in NYC currently and are expanding to LA, SF, Chicago and DC.
What’s your business model?
We are a subscription-based service. Clients pay for individual access to our web-based application.
What was the funding process like?
We had a lot of interest from firms on the East and West coasts. Bain Capital Ventures rapidly emerged as the ideal partner for us given their experience with B2B SaaS companies. We enjoyed getting to know them (and other firms) over the past couple of months.
What are the biggest challenges that you faced while raising capital?
Juggling the time it takes to meet with investors with the “day job” of building and running the company!
What factors about your business led your investors to write the check?
“Reonomy has architected an incredibly unique and comprehensive data platform that solves a major pain point for commercial real estate lenders, investors and brokers” said Mike Krupka, Managing Director of Bain Capital Ventures, who led the round and who will be joining Reonomy’s board of directors. “As the commercial real estate industry looks to better leverage next generation data and information technology, we believe Reonomy is well positioned to be a best-in-class provider. We look forward to partnering with Rich and the Reonomy team as they continue to expand the product functionality and geography to best serve its customers’ needs.”
What are the milestones you plan to achieve in the next six months?
We plan to expand to additional markets as well as roll out new product features.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Receiving funding is not a measure of success, but simply a means to an end. Focusing on business goals and strategy first and then thinking through what, if any, outside funding is required to execute the strategy is what I’d recommend.
Where’s your favorite NYC spot to kick back and relax?
Sunday brunch on the UWS with my wife and two kids (6 month old son and 3.5 year old daughter)!