Northspyre Raises $25M in Series B Funding to Power Its AI-Based Solution for Real Estate Developers
NEW YORK–(BUSINESS WIRE)–Northspyre, a financial tracking and project delivery automation platform for real estate developers, today announced that it has secured $25 million in Series B funding to further grow its business and extend its solution to improve the development process as part of the multi-trillion dollar commercial real estate industry.
This round is led by CRV, with participation from Craft Ventures, Tamarisc Ventures and Des Traynor, co-founder of Intercom. The funds will be used to bring Northspyre to additional customers across the United States and select international markets, launch new products, and continue to refine and improve the core solution.
Northspyre is the real estate industry’s first operating system specifically designed for property owners and developers managing complex projects such as developments, fit-outs and major renovations across all asset classes, including multi-family buildings , offices, retail, hospitality and mixed use.
Since its inception, Northspyre has helped facilitate over $44 billion in investment projects on behalf of the commercial real estate industry, and is now used by over 130 clients in nearly every major city in the United States. . Since increasing their Series A in 2020, the company has grown 6x and continues to grow rapidly.
“We are exceptionally pleased with the growth we have experienced over the past year. Our team is deeply committed to transforming the traditional real estate development and project delivery process, which relies on convoluted, error-prone spreadsheets that provide limited line of sight to the real-time status of project budgets and critical risks,” said William Sankey, co-founder and CEO of Northspyre. “We are thrilled to partner with CRV and the rest of our investors to continue bringing real estate project delivery into the 21st century.”
Northspyre’s solution uses modern technologies such as automation, data analytics and artificial intelligence to put proactive, data-driven insights into the hands of development teams, transforming the way they approach various complexities of project delivery, vendor management and capital deployment. Existing clients using these forward-thinking technologies include Madison Realty Capital, Leggat McCall, SunCal and many others.
“Despite the size and value of the real estate industry today, the technology stack available is elementary,” said Anna Khan, General Partner at CRV. “Over the past five years, we have seen a rebirth of software as a vertical service, and Northspyre is at the forefront of this revolution. William and his team identified an area of the real estate industry that was severely lacking in technology penetration and will continue to create impact as development teams seek forward-looking solutions to improve efficiency and their competitive advantage.
Three-quarters of real estate projects go over budget and fall short of financial targets due to ineffective management methods based on relying on fragmented and under-analyzed historical information and instinct rather than business analysis. data and proactive early warning systems. While the commercial real estate industry is no stranger to real estate technology, development teams still heavily use document-heavy manual processes to complete administrative tasks. This tends to prevent project managers and members of the executive team from making faster and more informed decisions by focusing on the critical financial factors of project development such as deadlines, invoices, contracts, budgets and change orders. Northspyre is the first technology solution on the market to successfully solve this problem for project delivery teams through automation, data and artificial intelligence.
Sankey adds: “Developers cannot afford to continue to incur millions in unnecessary project cost overruns. As a result, we are beginning to see a secular shift in the industry from spreadsheet-based workflows to automation and data-driven software. We are encouraged by the demand we are seeing for more modern solutions to improve processes amid the pandemic. »
Northspyre began serving customers in the New York and Boston markets four years ago. Since then, it has developed a national footprint, attracting the attention of developers overseeing projects in every major metropolitan area in the country, including Atlanta, Chicago, Dallas, New York, and San Francisco. Over the past year, Northspyre has expanded into more than thirty new high-growth markets, including San Diego, Charlotte and Phoenix.
For more information on new products set to transform pre-development, supplier relationships and more, register to attend Northspyre’s special event on February 22 at 2:00 PM EST. Please register here.
Northspyre is a cloud-based intelligence platform that enables property owners and development teams to make more proactive, data-driven decisions when managing complex multi-million dollar projects such as developments , fittings and major renovations in all asset classes. Northspyre harnesses the power of automation, data analytics, and artificial intelligence to enable development teams to lower project costs and drive higher profits through real-time actionable insights, getting resulting in more predictable results and significant time and cost savings. Northspyre technology is dedicated to helping teams complete the most challenging projects on time and on budget. Since 2017, Northspyre has facilitated over $44 billion in client projects. To learn more, visit www.northspyre.com.
CRV is a venture capital firm that invests in early stage startups. Since 1970, the company has invested in more than 500 startups at their most crucial stages, including Airtable, DoorDash and Iterable. Founders need more than capital to build a great company. It takes a partner who understands the entrepreneurial journey and knows what it takes to win. From founding to IPO and beyond, CRV is there every step of the way. The founders rely on CRV to be trusted, long-term committed partners, which has helped make CRV one of the oldest venture capital firms in the world. Learn more about CRV and the companies shaping the future at https://www.crv.com.