Service management has long been a staple of the IT industry, continuously pushing the industry forward to deliver better experiences and manage crises more efficiently. The real estate industry has also been using a service management model to respond to the needs of commercial/residential property owners and tenants but has been slower to adopt innovation. Addressing a $680B+ outsourced facilities management market, UtilizeCore is a building service management platform and marketplace for the real estate industry to automate many of the functions of service management. Similar to sites like Angie’s List, Thumbtack, and HomeAdvisor for residential homeowners, service management companies and building owners can use the SaaS platform free of cost to discover, hire, manage, and pay contractors to deliver services to buildings. The pandemic exposed the importance of being able to manage buildings virtually, leading to increased interest for UtilizeCore; the company now has 50K+ users that have completed more than 2M work orders.
AlleyWatch caught up with the cofounders Jason Kwait (President), Ryan Gottfried (CEO), and Johnny Zhu (COO) to learn more about the company, its strategic plans, recent found of funding, and much, much more.
Who were your investors and how much did you raise?
$5.3M from investors that include boldstart ventures, MANTIS Venture Capital (in partnership with The Chainsmokers), S12F, and key strategics.
Tell us about the product or service that UtilizeCore offers.
UtilizeCore’s marketplace allows service management companies to procure, manage and pay contractors delivering repair/maintenance services to residential and commercial properties.
What inspired the start of UtilizeCore?
We grew up around the service industry (ie. HVAC and cloud technology for the service space) and began to intimately understand the space and the underlying problems. We wanted to revolutionize how services are managed and consumed.
How is UtilizeCore different?
UtilizeCore is the first end-to-end automated platform to efficiently power service management. UtilizeCore helps service management companies seamlessly manage all workstreams through a single, consolidated platform. UtilizeCore enables service management companies to procure and manage subcontractors to deliver quality service on demand.
What market does UtilizeCore target and how big is it?
Outsourced Facility Management which is a $680B market.
What’s your business model?
A subscription service for the service management companies with additional alternative billing methods. Contractors and service requesters use the platform for free.
How has COVID-19 impacted the business?
Especially throughout the last year, we’ve seen how vital it is for buildings to run efficiently and without interruption. Service companies were deemed essential services and UtilizeCore was busier than ever.
Especially throughout the last year, we’ve seen how vital it is for buildings to run efficiently and without interruption. Service companies were deemed essential services and UtilizeCore was busier than ever.
What was the funding process like?
It was our first round of outside capital. It was a learning experience and one that we really enjoyed. There was a tremendous amount of traction and we ended up being oversubscribed.
What are the biggest challenges that you faced while raising capital?
Focusing on both the raise and the business at the same time was challenging. Fundraising takes up an inordinate amount of time and it’s a balancing act to make sure the business is still progressing forward.
What factors about your business led your investors to write the check?
Our history and experience in the space, along with the opportunity to invest in a business that was building the first fundamental operational software for a massive market.
What are the milestones you plan to achieve in the next six months?
We plan to greatly accelerate the growth of the business and make key hires.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Run a lean operation, manage cash flows, wear multiple hats, and keep moving forward.
Run a lean operation, manage cash flows, wear multiple hats, and keep moving forward.
Where do you see the company going now over the near term?
Continuing to optimize the platform and gaining a larger market share in the service management space.
What’s your favorite outdoor dining restaurant in NYC
Baby Brasa
