Bilt Rewards banks $60M growth on a $350M valuation to advance credit card benefits for renters

Bilt Rewards, a loyalty program for property renters to earn points on rent with no fees and build a path toward homeownership, announced Tuesday a round of $60 million in growth funding that values the company at $350 million.

The investment comes from Wells Fargo and Mastercard and a group of the nation’s largest real estate owners, including The Blackstone Group, AvalonBay Communities, Douglas Elliman, Equity Residential, GID-Windsor Communities, LENx, The Moinian Group, Morgan Properties, Starwood Capital Group and Related.

Bilt launched back in June out of Kairos, the startup studio led by Ankur Jain, focused on enabling over 109 million renters in the U.S. to earn points from paying their rent every month — typically someone’s largest monthly expense. Since then, the program was rolled out across over 2 million rental units, Jain told TechCrunch.

“We are the first and only alliance of the major property owners to create this kind of program and already have 15 of the top 20 owners involved,” he added. “We are also the only co-branded card to offer points on rent.”

Greg Bates, GID president and CEO, said his company has 130 assets spread across the top 20 markets and manages 40,000 apartment units. He learned about Bilt from a colleague who attended a proptech conference where Jain demoed the Bilt card.

For as long as Bates has been in the real estate industry, about 20 years or so, renters have wanted to pay rent with a credit card for convenience and to earn loyalty points. However, that was cost-prohibitive in terms of the surcharges needed to be added to the rental rate — until Bilt, he said. The card “is incredibly easy to use” and integrates into property owners’ online payment systems.

“Bilt has transformed the value proposition for residents that want to use a credit card and for landlords that want to accept them,” Bates added. “There will always be barriers to entry for products like this, but Bilt spent time with Mastercard and Wells Fargo to develop this unique product which will be a competition differentiator for a few years to come.”

In addition to the new funding, Bilt is also announcing new benefits for its loyalty members and upgraded offerings for the Bilt Mastercard, including the ability to earn up to 50,000 points on rent per year and unlimited points using the credit card.

For members, Bilt will pay interest in the form of points for a member’s account each month based on their average daily points balance over the 30-day period, and offer a concierge service for members choosing to redeem their Bilt points toward a home down payment. In addition, members can earn bonus points on top of points used by landlords on new leases and renewals.

Bilt worked with regulators, as well as Fannie Mae and the Department of Housing and Urban Development, to gain approval for using rewards points toward a mortgage. Members can also report their rent payments to the credit bureaus at no cost, which can help build credit history for millions of young renters.

Meanwhile, the company’s new “0-1-2-3” point earning structure for Bilt Mastercard holders provides no annual fee, 1x points on rent payments, 2x points on travel, 3x points on dining and 1x points on all other purchases.

This is the company’s first major external financing round and will be used to expand its real estate and loyalty partner network, grow its distribution channels and make its platform credit card more widely available to the public. Jain estimates Bilt is seeing 20% enrollment across residents.

As more renters move to homeownership over time, Bilt has plans to leverage this potential larger business to eventually become a mortgage provider for them.

“Renting is something people do for a while, and the core business has a massive scale opportunity, especially in the demographic under 35 years old, who tend to be up-and-coming professionals,” Jain added. “This is a unique target market, and Bilt will grow with them as they build their path to homeownership.”

 


By Christine Hall

Buildots raises $30M to put eyes on construction sites

One year after raising $16 million, construction technology company Buildots is back to claim another $30 million, this time in Series B funding.

Lightspeed Venture Partners led the round, with participation from previous investors TLV Partners, Future Energy Ventures and Tidhar Construction Group. This gives the company $46 million in total funding, Roy Danon, co-founder and CEO of Buildots, told TechCrunch.

The three-year-old company, with headquarters in Tel Aviv and London, is leveraging artificial intelligence computer vision technology to address construction inefficiencies. Danon said though construction accounts for 13% of the world’s GDP and employs hundreds of millions of people, construction productivity continues to lag, only growing 1% in the past two decades.

Danon spent six months on construction sites talking to workers to understand what was happening and learned that control was one of the areas where efficiency was breaking down. While construction processes would seem similar to manufacturing processes, building to the design or specs didn’t happen often due to different rules and reliance on numerous entities to get their jobs done first, he said.

Buildots’ technology is addressing this gap using AI algorithms to automatically validate images captured by hardhat-mounted 360-degree cameras, detecting immediately any gaps between the original design, scheduling and what is actually happening on the construction site. Project managers can then make better decisions to speed up construction.

“It even finds events where contractors are installing out of place and streamline payments so that information is transparent and clear,” Danon said. “Buildots also creates a collaborative environment and trust by having a single source telling everyone what is going on. There is no more blaming or cutting corners because the system validates that and also makes construction a healthier industry to work in.”

Buildots went after new funding once it was able to show product market fit and was expanding into other countries. The platform is being utilized on major building projects in countries like the U.S., U.K., Germany, Switzerland, Scandinavia and China. To meet demand, Buildots will use the new funding to continue that expansion; double the size of its global team with a focus on sales, marketing and R&D; and grow on the business side. Danon’s aim is “to get to the point where we are the standard for every construction site.” The company is also looking at areas outside construction where its technology would be applicable.

Tal Morgenstern, partner at Lightspeed Venture Partners, said he keeps an eye on graduates of the Israel Defense Forces, where the three Buildots founders came from. However, in the case of this company, Lightspeed actually passed on both the seed and Series A.

Morgenstern admits the decision was a mistake, but at the time, he thought the technology Buildots was trying to build “first, impossible and second, I knew construction was difficult to sell into.” He felt that Buildots, with such a premium product, would have a challenge selling to a low-margin industry that was late to adopt technology in general.

By the time the Series B came round, he said Buildots had solved both of those issues, proving that it works, but also that customers were adopting the technology without much sales and marketing. In addition, other solutions in construction tech were still relying on lasers or people to manually input or tap photos.

“Buildots is seamlessly capturing images and providing a level of insights that is so high, and that is why the company is able to command the price structure they have and are receiving interesting commercial results,” Morgenstern said.

Walking around today’s construction site, Danon said the adoption of technology is enabling Buildots to move quickly to build processes for the industry.

As such, the company saw more than 50% growth quarter over quarter over the past year in three of the countries in which it operates. It is now working with four of the top 10 construction companies in Europe and around the world.

“We did a good job selling remotely, but now we need local offices,” Danon added. “We are also sitting on piles of data from construction sites. We learn from one project to another and want to look for the challenges where data will help make a financial impact. It’s a natural next step for the company.”

 


By Christine Hall

Commercial real estate lending startup Lev brings in $30M on a $130M valuation

Commercial real estate has been slow to embrace technology; though it has an addressable financing market of more than $40 billion, putting together a deal is still mostly manual, paper-heavy and complicated.

New York-based Lev is taking on this problem by automating workflows online and gathering hundreds of millions of data points into machine learning software to ensure financing accuracy. To do this, the commercial real estate financing transaction platform raised $30 million to give it a $130 million valuation just two years into its inception.

The latest financing comes four months after the company raised $10 million in seed funding led by NFX. Greenspring led the latest round, with participation from First American Title. Existing investors NFX, Canaan Partners, JLL Spark, Animo Ventures and Ludlow Ventures also joined in to give Lev total investments of more than $34 million, according to Crunchbase data.

Lev founder and CEO Yaakov Zar previously co-founded Boston-based Dispatch, which built tools for home services businesses. It was when he and his wife went through the homebuying process — and their mortgage fell through — that Zar decided to look at real estate financing.

He channeled his frustration into becoming a licensed mortgage loan originator. After relocating to New York, Zar was helping a friend at a nonprofit organization refinance their building and got a firsthand look at what he said was a fragmented commercial real estate mortgage industry.

Companies like Blend are addressing the problem of real estate lending, Zar told TechCrunch, but very few are focusing on commercial real estate, where lending is sensitive to interest rates and total amortization. In addition, property owners have a burden of refinancing every five to 10 years.

“Legacy businesses like JLL, which is an investor, Cushman Wakefield and CBRE work on lending, but they are much more ‘relationship focused’ than tech focused,” Zar said. “We think that it is a necessary part because the deals are so large and complex that you need a relationship for them, but transactions less than $1 billion are pretty straightforward. On experience and product, no one is close to us.”

Initially, Zar and his team wanted to build the “Rocket Mortgage of commercial real estate lending,” but found that to be difficult because real estate brokers are putting together their own pitch books for lenders. Instead, Lev is building a technology platform of more than 5,000 lenders with information on what projects they like to finance. It then analyzes a customer’s portfolio and connects them in minutes with the right lender, taking 1% of the loan amount for each transaction as payment. Lev is also working to be able to close deals online.

Zar wasn’t looking for funding when he was approached by investors, but said he was introduced to some people who liked the company’s growth and trajectory and decided to accept the funding offer.

He intends to use the new funding on product development, with the aim of giving a term sheet in seconds and closing a loan in seven days. Right now it can take a week or two to get the term sheet and 45 to 90 days to close a loan.

The company has about 40 employees currently in its New York headquarters, Miami R&D center, Los Angeles outpost and remotely. Continued investments will be made to expand the team.

Lev grew 10 times in volume in the past year, closing approximately $100 million of loans in 2020. Zar expects to close over $1 billion in 2021.

“Customers come back to us repeatedly, and there are a ton of referrals,” Zar said. “We want to be the platform on which capital market transactions are processed. You need an advantage to network and find great deals. I don’t want to mess with that, but when you find it, bring it to us, we will close it and provide the asset management with the best option to close online and manage the deal from a single platform.”

Meanwhile, Pete Flint, general partner at NFX, told TechCrunch that he got to know the Lev team over the last 18 months, checking in on the company during various stages of the global pandemic, and was impressed at how the company navigated it.

As co-founder of Trulia, he saw firsthand the problems in the real estate industry over search and discovery, but as that problem was being solved, the focus shifted to financing. NFX is also an investor in Tomo and Ribbon, which both focus on residential financing.

Wanting to see what opportunities were on the commercial real estate side, Flint heard Lev’s name come up more and more among brokers and industry insiders.

“As we got to know the Lev team, we recognized that they were the best team out there to solve this problem,” Flint said. “We are also among an amazing group of people complementing the round. The folks that are deep industry insiders will put a helpful lens on strategy and business development opportunities.”

 


By Christine Hall

JLL, Khosla lead Jones’ $12.5M Series A for real estate vendor compliance

Commercial real estate tenants and property managers have to abide by strict liability rules that any vendor entering the property must have insurance certificates and meet other requirements. The approval process for this currently can take days and is still largely done on paper.

Enter Jones. The New York-based commercial real estate startup is curating a marketplace of pre-approved vendors for tenants and property managers to find and hire the people they need in a compliant way.

To continue advancing its network, the company announced Monday it raised $12.5 million in Series A funding led by JLL Spark and Khosla Ventures that also included strategic investors Camber Creek, Rudin Management, DivcoWest and Sage Realty. This new investment brings Jones’ total raised to $20 million, according to Crunchbase data.

Jones, founded in 2017, also manages certifications and approvals, moving the whole process online. Its technology can process an insurance certificate in less than an hour and reduce the overall vendor approval time to 2.5 days — from 12 days — with 99.9% accuracy, co-founder and CEO Omri Stern told TechCrunch.

The accuracy portion is key. With much of the work being done by hand, current accuracy is at about 30%, he added. In addition, the certifications are lengthy, and it is typically up to property managers to parse through the insurance documents to identify what is missing rather than spending time with tenants.

“In the consumer world, a homeowner expects to go on a marketplace and find a service and hire them,” Stern said. “Office managers and tenants can’t get their preferred vendors through the approval process, so we want to provide a similar digital experience that they can consume and use in real estate.”

He says Jones’ differentiator from competitors is that all of the stakeholders are in place: a group of high-profile real estate customers, including Lincoln Property Co., Prologis, DivcoWest, Rudin Management, Sage Realty and JLL.

Yishai Lerner, co-CEO of JLL Spark, agrees, telling TechCrunch that commercial real estate is one of the largest and last asset classes that is undergoing a technology transformation, similar to what fintech was 20 years ago.

He estimates the U.S. market to be $16 trillion, of which technology could unlock a lot of the value. That opportunity was one of the drivers for JLL to create JLL Spark, where Jones is one of the first investments.

Though Lerner spent time with property management teams on the ground, he became up close and personal with the problem when his wife, while moving offices, found out her vendors were not allowed in the building because they didn’t have the right insurance.

“We learned that property managers spend half of their time just working to verify the compliance of vendors coming into their building,” Lerner said. “We wondered why there wasn’t technology for this. Jones was doing construction at the time, and we brought them into commercial real estate because they had an example of how technology could solve the problem.”

Meanwhile, the Series A comes at a time when Stern is seeing Jones’s SaaS tool take off in the past 10 months. He would not get specific with growth metrics, but did say that what is driving growth is “competing against the status quo” as companies are searching for and adapting workflow solutions.

The company intends to use the new funds on product development in both quicker and easier approvals and bringing on new vendors. Jones already works with tens of thousands of vendors. It will also focus on integration, offering an API that could be used in other industry verticals where compliance is necessary.

Stern would also like to continue building the team. Having brought in real estate experts, he is now also looking for people with backgrounds in fintech, cybersecurity and insurtech to bring in additional perspectives.

“We are building an incredible company with the opportunity to be the next big digital marketplace,” he added.

 


By Christine Hall

Base Operations raises $2.2 million to modernize physical enterprise security

Typically when we talk about tech and security, the mind naturally jumps to cybersecurity. But equally important, especially for global companies with large, multinational organizations, is physical security – a key function at most medium-to-large enterprises, and yet one that to date, hasn’t really done much to take advantage of recent advances in technology. Enter Base Operations, a startup founded by risk management professional Cory Siskind in 2018. Base Operations just closed their $2.2 million seed funding round, and will use the money to capitalize on its recent launch of a street-level threat mapping platform for use in supporting enterprise security operations.

The funding, led by Good Growth Capital and including investors like Magma Partners, First In Capital, Gaingels and First Round Capital founder Howard Morgan, will be used primarily for hiring, as Base Operations looks to continue its team growth after doubling its employe base this past month. It’ll also be put to use extending and improving the company’s product, and growing the startup’s global footprint. I talked to Siskind about her company’s plans on the heels of this round, as well as the wider opportunity and how her company is serving the market in a novel way.

“What we do at Base Operations is help companies keep their people in operation secure with ‘Micro Intelligence,’ which is street-level threat assessments that facilitate a variety of routine security tasks in the travel security, real estate and supply chain security buckets,” Siskind explained. “Anything that the Chief Security Officer would be in charge of, but not cyber – so anything that intersects with the physical world.”

Siskind has first-hand experience about the complexity and challenges that enter into enterprise security, since she began her career working for global strategic risk consultancy firm Control Risks in Mexico City. Because of her time in the industry, she’s keenly aware of just how far physical and political security operations lag behind their cybersecurity counterparts. It’s an often-overlooked aspect of corporate risk management, particularly since in the past it’s been something that most employees at North American companies only ever encounter periodically, when their roles involve frequent travel. The events of the past couple of years have changed that, however.

“This was the last bastion of a company that hadn’t been optimized by a SaaS platform, basically, so there was some resistance and some allegiance to legacy players,” Siskind told me. “However, the events of 2020 sort of turned everything on its head, and companies realized that the security department ,and what happens in the physical world, is not just about compliance – it’s actually a strategic advantage to invest in those sort of services, because it helps you maintain business continuity.”

The COVID-19 pandemic, increased frequency and severity of natural disasters, and global political unrest all had significant impact on businesses worldwide in 2020, and Siskind says that this has proven a watershed moment in how enterprises consider physical security in their overall risk profile and strategic planning cycles.

“[Companies] have just realized that if you don’t invest and how to keep your operations running smoothly in the face of rising catastrophic events, you’re never going to achieve the the profits that you need, because it’s too choppy, and you have all sorts of problems,” she said.

Base Operations addresses this problem by taking available data from a range of sources and pulling it together to inform threat profiles. Their technology is all about making sense of the myriad stream of information we encounter daily – taking the wash of news that we sometimes associate with ‘doom-scrolling’ on social media, for instance, and combining it with other sources using machine learning to extrapolate actionable insights.

Those sources of information include “government statistics, social media, local news, data from partnerships, like NGOs and universities,” Siskind said. That data set powers their Micro Intelligence platform, and while the startup’s focus today is on helping enterprises keep people safe, while maintaining their operations, you can easily see how the same information could power everything from planning future geographical expansion, to tailoring product development to address specific markets.

Siskind saw there was a need for this kind of approach to an aspect of business that’s essential, but that has been relatively slow to adopt new technologies. From her vantage point two years ago, however, she couldn’t have anticipated just how urgent the need for better, more scalable enterprise security solutions would arise, and Base Operations now seems perfectly positioned to help with that need.


By Darrell Etherington

Thoma Bravo to acquire RealPage property management platform for $10.2B

The busy year in M&A continued this weekend when private equity firm Thoma Bravo announced it was acquiring RealPage for $10.2B.

In RealPage, Thoma Bravo is getting a full-service property management platform with services like renter portals, site management, expense management and financial analysis for building and property owners. Orlando Bravo, Founder and a Managing Partner of Thoma Bravo sees a company that they can work with and build on its previous track record.

“RealPage’s industry leading platform is critical to the real estate ecosystem and has tremendous potential going forward,” Bravo said in a statement.

As for RealPage, company CEO Steve Winn, who will remain with the company, sees the deal as a big win for stock holders, while giving them the ability to keep investing in the product. “This will enhance our ability to focus on executing our long-term strategy and delivering even better products and services to our clients and partners,”  Winn said in a statement.

RealPage, which was founded in 1998 and went public in 2010, is a typical kind of mature platform that a private equity firm like Thoma Bravo is attracted to. It has a strong customer base with over 12,000 customers and respectable revenue, growing at a modest pace. In its most recent earnings statement, the company announced $298.1 million in revenue, up 17% year over year. That puts it on a run rate of over $1 billion.

Under the terms of the deal, Thoma Bravo will pay RealPage stockholders $88.75 in cash per share. That is a premium of more 30% over the $67.83 closing price on December 18th. The transaction is subject to standard regulatory review, and the RealPage board will have a 45-day “go shop” window to see if it can find a better price. Given the premium pricing on this deal, that isn’t likely, but it will have the opportunity to try.


By Ron Miller

Placer.ai, a location data analytics startup, raises $12 million Series A

Placer.ai, a startup that analyzes location and foot traffic analytics for retailers and other businesses, announced today that it has closed a $12 million Series A. The round was led by JBV Capital, with participation from investors including Aleph, Reciprocal Ventures and OCA Ventures.

The funding will be used on research and development of new features and to expand Placer.ai’s operation in the United States.

Launched in 2016, Placer.ai’s SaaS platform gives its clients to real-time data that helps them make decisions like where to rent or buy properties, when to hold sales and promotions and how to manage assets.

Placer.ai analyzes foot traffic and also creates consumer profiles to help clients make marketing and ad spending decisions. It does this by collecting geolocation and proximity data from devices that are enabled to share that information. Placer.ai’s co-founder and CEO Noam Ben-Zvi says the company protects privacy and follows regulation by displaying aggregated, anonymous data and does not collect personally identifiable data. It also does not sell advertising or raw data.

The company currently serves clients in the retail (including large shopping centers), commercial real estate and hospitality verticals, including JLL, Regency, SRS, Brixmor, Verizon* and Caesars Entertainment.

“Up until now, we’ve been heavily focused on the commercial real estate sector, but this has very organically led us into retail, hospitality, municipalities and even [consumer packaged goods],” Ben-Zvi told TechCrunch in an email. “This presents us with a massive market, so we’re just focused on building out the types of features that will directly address the different needs of our core audience.”

He adds that lack of data has hurt retail businesses with major offline operations, but that “by effectively addressing this gap, we’re helpiong drive more sustainable growth or larger players or minimizing the risk for smaller companies to drive expansion plans that are strategically aggressive.”

Others startups in the same space include Dor, Aislelabs, RetailNext, ShopperTrak and Density. Ben-Zvi says Placer. ai wants to differentiate by providing more types of real-time data analysis.

While there are a lot of companies touching the location analytics space, we’re in a unique situation as the only company providing these deep and actionable insights for any location in the country in a real-time platform with a wide array of functionality,” he said.

*Disclosure: Verizon Media is the parent company of TechCrunch.


By Catherine Shu

Top VCs on the changing landscape for enterprise startups

Yesterday at TechCrunch’s Enterprise event in San Francisco, we sat down with three venture capitalists who spend a lot of their time thinking about enterprise startups. We wanted to ask what trends they are seeing, what concerns they might have about the state of the market, and of course, how startups might persuade them to write out a check.

We covered a lot of ground with the investors — Jason Green of Emergence Capital, Rebecca Lynn of Canvas Ventures, and Maha Ibrahim of Canaan Partners — who told us, among other things, that startups shouldn’t expect a big M&A event right now, that there’s no first-mover advantage in the enterprise realm, and why grit may be the quality that ends up keeping a startup afloat.

On the growth of enterprise startups:

Jason Green: When we started Emergence 15 years ago, we saw maybe a few hundred startups a year, and we funded about five or six. Today, we see over 1,000 a year; we probably do deep diligence on 25.


By Connie Loizos

FlareAgent, a platform that automates real estate transactions, launches out of YC

The real estate industry is experiencing a bit of a rejuvenation. After years resisting the influence of tech, the industry is now feeling the entrance of e-buyers, as well as a variety of software to streamline the process. One such tech company looking to infiltrate real estate is FlareAgent, which launches today out of Y Combinator.

FlareAgent was founded by Abhi CKV and Rashid Aziz. The duo, who just graduated out of NYU, first built FlareAgent when Rashid’s dad, a real estate agent, was asked by his boss (Mr. Brown) about finding software that might speed up the process of completing a transaction.

Abhi and Rashid built something that ended up helping grow the real estate firm from 20 deals per month to over 100 deals/month. How?

FlareAgent lets all parties collaborate on a transaction from the comfort of their own home or office. From purchase offers to escrow documents to the closing agreement, FlareAgent allows brokers and clients to view and interact with various documents to speed up the time to close.

This used to be done manually by brokers, who’d have to fax or mail or hand-deliver documents to and from various parties in the transaction. If changes take place to the paperwork, this process may start over from scratch.

With FlareAgent, all the time spent changing and sharing documents manually can be done online.

To be clear, a transaction doesn’t actually go through FlareAgent. In other words, the money changing hands from buyer to seller doesn’t flow through the FlareAgent platform. But all the documents that need to be reviewed, amended, and signed can be handled on FlareAgent.

To make money, the company charges a monthly subscription to brokers using the platform.

Thus far, FlareAgent says it has around 100 active agents on the platform and has processed more than 2,500 transactions (worth $550 million in property value) since its inception.


By Jordan Crook

Beyond costs, what else can we do to make housing affordable?

This week on Extra Crunch, I am exploring innovations in inclusive housing, looking at how 200+ companies are creating more access and affordability. Yesterday, I focused on startups trying to lower the costs of housing, from property acquisition to management and operations.

Today, I want to focus on innovations that improve housing inclusion more generally, such as efforts to pair housing with transit, small business creation, and mental rehabilitation. These include social impact-focused interventions, interventions that increase income and mobility, and ecosystem-builders in housing innovation.

Nonprofits and social enterprises lead many of these innovations. Yet because these areas are perceived to be not as lucrative, fewer technologists and other professionals have entered them. New business models and technologies have the opportunity to scale many of these alternative institutions — and create tremendous social value. Social impact is increasingly important to millennials, with brands like Patagonia having created loyal fan bases through purpose-driven leadership.

While each of these sections could be their own market map, this overall market map serves as an initial guide to each of these spaces.

Social impact innovations

These innovations address:


By Arman Tabatabai

Innovations in inclusive housing

Housing is big money. The industry has trillions under management and hundreds of billions under development.

And investors have noticed the potential. Opendoor raised nearly $1.3 billion to help homeowners buy and sell houses more quickly. Katerra raised $1.2 billion to optimize building development and construction, and Compass raised the same amount to help brokers sell real estate better. Even Amazon and Airbnb have entered the fray with high-profile investments.

Amidst this frenetic growth is the seed of the next wave of innovation in the sector. The housing industry — and its affordability problem — is only likely to balloon. By 2030, 84% of the population of developed countries will live in cities.

Yet innovation in housing lags compared to those of other industries. In construction, a major aspect of housing development, players spend less than 1% of their revenues on research and development. Technology companies, like the Amazons of the world, spend nearly 10% on average.

Innovations in older, highly-regulated industries, like housing and real estate, are part of what Steve Case calls the “third wave” of technology. VCs like Case’s Revolution Fund and the SoftBank Vision Fund are investing billions into what they believe is the future.

These innovations are far from silver bullets, especially if they lack involvement from underrepresented communities, avoid policy, and ignore distributive questions about who gets to benefit from more housing.

Yet there are hundreds of interventions reworking housing that cannot be ignored. To help entrepreneurs, investors, and job seekers interested in creating better housing, I mapped these innovations in this package of articles.

To make sense of this broad field, I categorize innovations into two main groups, which I detail in two separate pieces on Extra Crunch. The first (Part 1) identifies the key phases of developing and managing housing. The second (Part 2) section identifies interventions that contribute to housing inclusion more generally, such as efforts to pair housing with transit, small business creation, and mental rehabilitation.

Unfortunately, many of these tools don’t guarantee more affordability. Lowering acquisition costs, for instance, doesn’t mean that renters or homeowners will necessarily benefit from those savings. As a result, some tools likely need to be paired with others to ensure cost savings that benefit end users — and promote long-term affordability. I detail efforts here so that mission-driven advocates as well as startup founders can adopt them for their own efforts.


Topics We Explore

Today:

Coming Tomorrow:

  • Part 2. Other contributions to housing affordability
    • Social Impact Innovations
    • Landlord-Tenant Tools
    • Innovations that Increase Income
    • Innovations that Increase Transit Accessibility and Reduce Parking
    • Innovations that Improve the Ability to Regulate Housing
    • Organizations that Support the Housing Innovation Ecosystem
  • This is Just the Beginning
  • I’m Personally Closely Watching the Following Initiatives.
  • The Limitations of Technology
  • Move Fast and Protect People


Please feel free to let me know what else is exciting by adding a note to your LinkedIn invite here.

If you’re excited about this topic, feel free to subscribe to my future of inclusive housing newsletter by viewing a past issue here.


By Arman Tabatabai

Market map: the 200+ innovative startups transforming affordable housing

In this section of my exploration into innovation in inclusive housing, I am digging into the 200+ companies impacting the key phases of developing and managing housing.

Innovations have reduced costs in the most expensive phases of the housing development and management process. I explore innovations in each of these phases, including construction, land, regulatory, financing, and operational costs.

Reducing Construction Costs

This is one of the top three challenges developers face, exacerbated by rising building material costs and labor shortages.


By Arman Tabatabai

Managed By Q launches a new task management feature for office managers

Managed By Q, the office management platform recently acquired by WeWork, has today announced the launch of Task Management.

The feature comes to Managed By Q by way of Hivy, a startup acquired by MBQ back in 2017, that focuses on connecting a company’s employees to the office manager that handles their requests.

Pre-Hivy, collecting requests and tracking projects across a large number of employees was a tedious, fragmented process. Hivy created a dashboard that organizes all those requests in a single place.

Since the acquisition, Managed By Q and Hivy have been working to integrate their respective platforms. Where Managed By Q connects office managers to the right vendor or MBQ operator to handle the job, the new Task Management system will connect office managers with the employees making the requests in the first place, essentially putting the entire pipeline in a single place.

Obviously, the path to full integration was a long one.

“What I think matters most,” said Hivy cofounder Pauline Tordeur, speaking about the process of intertwining two separate products, “is that we knew why we were doing this and what the future would look like when we integrate. Having this vision and outlook from the very beginning is important.”

The timing is interesting in that this is the first product announcement Managed By Q has made since it was acquired by WeWork.

“It’s hard to describe the feeling,” said Managed By Q cofounder and CEO Dan Teran of being acquired by The We Company. “There is a perception of WeWork from the outside, but since I’ve been spending a lot of time getting to learn the business firsthand, I think there is just so much potential.”

He noted that Managed By Q is indeed setting out to do with WeWork what it just completed with Hivy.

“We set out to build the operating system for space, and one of the biggest things we missed is the space itself,” said Teran. “That’s actually the hardest part for most people. So now that becomes another ingredient we can deliver to our customers.”


By Jordan Crook

Peter Kraus dishes on the market

During my recent conversation with Peter Kraus, which was supposed to be focused on Aperture and its launch of the Aperture New World Opportunities Fund, I couldn’t help veering off into tangents about the market in general. Below is Kraus’ take on the availability of alpha generation, the Fed, inflation vs. Amazon, housing, the cross-ownership of US equities by a few huge funds and high-frequency trading.

Gregg Schoenberg: Will alpha be more available over the next five years than it has been over the last five?

To think that at some point equities won’t become more volatile and decline 20% to 30%… I think it’s crazy.

Peter Kraus: Do I think it’s more available in the next five years than it was in the last five years? No. Do I think people will pay more attention to it? Yes, because when markets are up to 30%, if you get another five, it doesn’t matter. When markets are down 30% and I save you five by being 25% down, you care.

GS: Is the Fed’s next move up or down?

PK: I think the Fed does zero, nothing. In terms of its next interest rate move, in my judgment, there’s a higher probability that it’s down versus up.


By Gregg Schoenberg

WeWork acquires Managed By Q

Managed By Q, the office management platform based out of New York, has today been acquired by The We Company, formerly known as WeWork.

Financial terms were not disclosed. The WSJ reports that it was a cash and stock deal. Managed By Q, which has 500 employees, will remain as a wholly owned separate entity and CEO Dan Teran will remain on following the acquisition to join WeWork leadership.

Upon its latest financing in January, Managed By Q was valued at $249 million, according to PitchBook.

Here’s what Teran had to say in a prepared statement:

We are excited for this incredible opportunity to deepen our commitment to realizing our ambitious vision of building an operating system for the built world. WeWork is uniquely positioned to invest in workplace technology and services, and I look forward to partnering with their team to build more robust products for our clients and create a global platform to help companies push the bounds on our collective potential.

Managed By Q was founded in 2014 with a plan to change the way that offices run. The platform allowed office managers and other decision-makers to handle supply stocking, cleaning, IT support and other non-work related tasks in the office by simply using the Managed By Q dashboard. Managed By Q serves the demand through a combination of in-house operators and third-party vendors and service providers.

Notably, Managed By Q took a different tack than most other logistics companies, employing their operators as W2 workers instead of 1099 contractors. Moreover, Managed By Q offered a stock option plan to operators that gives 5 percent of the company back to those employees.

The company has raised a total of $128.25 million since launch from investors such as GV, RRE and Kapor Capital. Managed By Q currently serves the markets of New York, San Francisco, Los Angeles, Chicago, Boston and Silicon Valley, with plans to aggressively expand following the acquisition, according to the WSJ.

Not only has Managed By Q swiftly matured into a big player in the NY tech scene and Future Of Work space, but it has also fostered interesting competition and consolidation within the space. Managed By Q has itself made several acquisitions, including the purchase of NVS (an office space planning and project management service) and Hivy (an internal comms tool to let employees tell office managers what they need).


By Jordan Crook