Commercial property developer Majestic Realty took part in a $100m series C round for US-based footfall data software provider Placer.ai today, the newest investment by a property developer in the building analytics space.
Technology entrepreneur Josh Buckley led the round, which included media holding company WndrCo, MMC Technology Ventures, Fifth Wall Ventures, Array Ventures and private investors including Lachy Groom, JM Schapiro, Daniel Klein, Eliot Bencuya and Jeff Karsh.
Placer’s software uses big data to enable customers to get specific insights into footfall in commercial properties, helping them better understand customer interaction. The product is used by commercial real estate operators like Majestic as well as in retail and hospitality.
The round valued Placer at $1bn and hiked its overall funding to at least $166m. The capital has been earmarked for research and development activities.
The company’s technology fits into a wider space concentrating on building analytics, as advances in data software and the internet of things – set to become a larger presence with the full-scale adoption of 5G – mean building operators can increase efficiency and cut costs.
Strategic investors in the real estate sectors have caught on to the prospect. Real estate services provider JLL’s corporate venturing unit, JLL Spark, counts site mapping software provider OpenSpace and sensor-based building intelligence technology developer VergeSense among its portfolio.
Elsewhere, Measurabl, the developer of an environmental, social and governance analytics platform for real estate, secured $50m in a September round featuring property industry players Cushman & Wakefield, Colliers and Lincoln Property Company.
Real estate development group CBRE has perhaps had the most success in the space. It invested in Matterport, a provider of 3D property modelling software, in 2015 prior to it listing in 2021 through a $2.9bn reverse merger, and has a 6.3% stake in data-focused building efficiency technology developer Redaptive, which filed for an initial public offering in November.
Nor is corporate investment in the sector restricted to real estate operators. Spatial analysis software developer Carto raised $61m from investors including Salesforce Ventures and Hearst Ventures in December 2021, the same month geospatial mapping platform developer NavVis received $32m in a Kozo Keikaku-backed round.
In a wider sense, building management technology is adjacent to business models such as flexible workspace and office equipment rental which are springing up to help commercial real estate managers optimise their offerings, essential as the industry tries to regain its footing in the wake of the covid-19 pandemic and resulting migration to home working.
However, the ongoing fundraising by companies such as Placer also proves geospatial technology is not restricted to the still-growing satellite data sector and still has its place indoors.
Noam Ben-Zvi, Placer.ai’s co-founder and CEO, said: “Placer experienced significant growth during 2021 as a consensus formed across the market that accurate, reliable consumer behaviour analytics is indispensable to brick-and-mortar decision-making. Yet, location analytics is just the foundation for a much broader and more comprehensive vision.
“With this funding, we will accelerate the development of the Placer.ai platform, adding an unprecedented range of new data sets – such as vehicle traffic, planned construction, web traffic, purchase data and much more – as well as more advanced solutions to empower any professional with a stake in the physical world to make better decisions, faster than ever before.”
IrishAngels Ventures led a $4m seed round for the company in 2018 that included Array Ventures and existing investor Stage Venture Partners. It added $12m in series A funding from JBV Capital, Aleph, Reciprocal Ventures and OCA Ventures in January 2020.
Josh Buckley and fellow private investors Todd Goldberg and Rahul Vohra co-led Placer’s $50m series B round in April 2021, investing together with Fifth Wall, JBV Capital and Aleph VC.
