NEW YORK--(BUSINESS WIRE)--Northspyre, a financial tracking and project delivery automation platform for real estate developers, today announced it has secured $25 million in Series B funding to further grow its business and expand its solution to improve the development process within 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 purpose-built operating system for real estate owners and developers managing complex projects such as ground-up developments, fitouts and major renovations across all asset classes, including multifamily, office, retail, hospitality and mixed-use.
Since inception, Northspyre has helped facilitate more than $44 billion in capital projects on behalf of the commercial real estate industry, and is now being used by more than 130 customers in nearly every major city across the U.S. Since raising their Series A in 2020, the company has grown 6x and is continuing to rapidly expand.
“We are exceptionally pleased about the growth we’ve experienced this past year. Our team is deeply committed to transforming the traditional real estate development and project delivery process, which is reliant on error-prone, convoluted spreadsheets that offer a limited line of sight into the real-time status of project budgets and critical risks,” said William Sankey, Co-Founder and CEO of Northspyre. “We’re 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 utilizes 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 the various intricacies of project delivery, vendor management and capital deployment. Existing customers using these forward-thinking technologies include Madison Realty Capital, Leggat McCall, SunCal and more.
“Despite the size and value of the real estate industry today, the available technology stack is elementary,” said Anna Khan, General Partner at CRV. “Over the last five years we have witnessed a renaissance in vertical software-as-a-service, and Northspyre is at the forefront of this revolution. William and his team have identified a sector of the real estate industry that has been severely lacking technology penetration, and will continue to create ripples as development teams seek out forward-looking solutions to improve efficiency and their competitive advantage.”
Three-fourths of real estate projects finish over-budget and fail to hit financial targets due to inefficient management methods informed by reliance on fragmented, under-analyzed historical information and gut instinct rather than data analytics and proactive early warning systems. While the commercial real estate industry is no stranger to property technology, development teams still overwhelmingly utilize document-heavy, manual processes to execute administrative tasks. This tends to keep project managers and leadership team members from being able to make faster, more informed decisions by focusing on the critical financial drivers in project development such as timelines, invoices, contracts, budgets and change orders. Northspyre is the first technology solution on the market to successfully address this pain point for project delivery teams with automation, data, and artificial intelligence.
Sankey adds: “Developers can’t afford to continue suffering millions in unnecessary project cost overruns. As a result, we’re beginning to see a secular shift in the industry from spreadsheet-driven workflows to automation and data-driven software. We’re encouraged by the demand we’re seeing for more modern solutions to improve processes amid the pandemic.”
Northspyre began servicing 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 metro area in the country, including Atlanta, Chicago, Dallas, New York and San Francisco. In the past year Northspyre expanded to more than thirty new high-growth markets, including San Diego, Charlotte and Phoenix.
For more information about new products expected to transform predevelopment, vendor relationships and more, sign up to attend Northspyre’s special event on Feb. 22 at 2pm EST. Please register here.
About Northspyre
Northspyre is a cloud-based intelligence platform that empowers real estate owners and development teams to make more proactive, data-driven decisions when managing complex, multi-million dollar projects such as ground-up developments, fitouts and major renovations across all asset classes. Northspyre leverages the power of automation, data analytics and artificial intelligence to enable development teams to reduce project costs and unlock higher profits with real-time actionable insights, thereby achieving more predictable outcomes and realizing significant time and cost savings. Northspyre’s technology is dedicated to helping teams deliver even the most complicated projects on-time and on-budget. Since 2017, Northspyre has facilitated more than $44 billion in client projects. To learn more, visit www.northspyre.com.
About CRV
CRV is a venture capital firm that invests in early-stage startups. Since 1970, the firm 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. Founders rely on CRV to be trusted, long-term, committed partners, which has helped make CRV into one of the longest-running venture capital firms in the world. Learn more about CRV and the companies shaping the future at https://www.crv.com.
