Feb 06, 2018
Real estate research and data startup Reonomy raised $16 million in its latest funding round, about three years after last raising venture capital. The company, founded in 2013, has now picked up just under $40 million from investors, making it one of the deeper-pocketed startups to tackle the burgeoning market for commercial real estate intelligence.
Bain Capital Ventures, which headed up Reonomy’s Series B in 2015, also lead this round, with additional investment from Softbank, Barry Sternlicht’s family office JAWS, Marcus & Millichap’s venture arm, and John Catsimatidis’ Red Apple Group. Reonomy is also entering a partnership with Newmark Knight Frank that will see the newly public commercial brokerage layer the startup’s data atop its own.
Reonomy’s long fundraising hiatus combined with the departure of some key executives had led some observers to believe the startup was struggling. But Richard Sarkis, co-founder and CEO, said that unlike many of its flashier counterparts, the company opted to seek further capital only when it became essential to scale.
Core clients include real estate developers and investors such as Red Apple and Tishman Speyer, brokerages such as JLL and Cushman & Wakefield, and banks such as Wells Fargo and JPMorgan Chase. The partnership with Newmark will give the brokerage, which went public in December, the ability to use Reonomy’s data to build its own tools for brokers and clients
By aggregating and analyzing hundreds of public databases, Reonomy can put together a detailed tapestry of a property or holding company that includes zoning information, sales data, debt history and contact information. That’s the kind of intel that can make or break an investment.
The company’s national rollout started in New York and is now in 3,000 counties and 20,000 municipalities - didn’t come as swiftly as initially hoped. We did the math and said we’re going to have to replicate the same approach 30 different times. The company went back and rebuilt a market-agnostic system, one that can be switched on in a new market without the need to start from scratch.
Richard Sarkis, Co-Founder and CEO - Reonomy