Commercial real estate technology firm VTS has raised $90 million in a series D funding round bringing its total valuation to $1 billion – propelling the proptech firm to the top 20 commercial real estate tech unicorns of its kind.
Launched in 2012, the seven-year-old company helps large commercial real estate property owners and landlords track tenants and streamline leasing and asset management process from end to end. The company claims that its software platform gives landlords the ability to convert leads to leases at 41% faster rate.
The late-stage funding round which was led by Brookfield Ventures, the technology investment arm of Brookfield Asset Management, GLP, Tishman Speyer and Fifth Wall and is believed to be the largest venture financing in the history of commercial real estate software, according to the company’s press release.
The $90 million sum is nearly half of the $197 million the company has raised to date. VTS increased its year-over-year revenue by 70% in 2018, according to Amy Millard VTS chief marketing officer.
The proceeds from the round will be used to accelerate the launch of VTS’ end-to-end commercial real estate leasing marketplace, Truva which the company plans to launch in the New York market later this year. Truva will be one of the first platforms in the marketplace that will enable landlords and tenants to do deals without brokers, according to the Wall Street Journal (WSJ).
Josh Raffaelli, managing director of Brookfield Ventures, who will join VTS’ Board of Directors stated that the company has transformed the way the industry operates. Brookfield which has been using VTS services for more than two years stated it plans to put most of its buildings in North America, London and Dubai into the system.
“This was a very natural extension of an existing relationship,” Raffaelli told the WSJ.
Currently, the VTS platform manages more than 10 billion square feet of office, retail, and industrial assets globally which equates to nearly 3,000 buildings the size of One World Trade Center.
The company’s customers include top commercial real estate firms Blackstone, Brookfield, GLP, LaSalle Investment Management, Hines, Boston Properties, Oxford Properties, JLL, and CBRE.
“There’s no truer validation as a founder when your customers invest in your product and we’re thrilled to welcome Brookfield Ventures and GLP as our partners, alongside return investor Fifth Wall, as we enter the next phase of growth. This funding will enable us to accelerate the pace at which we build the best technology for commercial real estate landlords, brokers, and tenants, as we arm them with the sophisticated solutions they need to win in a rapidly changing environment,” stated Nick Romito, co-Founder, and CEO of VTS in a press release.
Last year, VTS launched a real-time benchmarking and market analytics tool, called VTS MarketView that uses data collected from 10 billion square feet of space to provide its customers with market research on lease rates and other metrics.
VTS also merged with competitor Hightower in 2016 and grew square footage of office, retail, and industrial assets managed from a combined $2 billion to $10 billion at the end of last year.
“We had to spend five to seven years building one central platform. Now we can do all the fun stuff,” he told the WSJ.