Four months ago, real estate investment firm Skyline AI made headlines when out of nowhere, they announced a funding effort which netted more than $3 million for the company. They are now making headlines once again as they announced an additional $18 million raised in funding just this week in its Series A- which is the name given to a company’s first significant round of venture capital.
The most recent round of funds were in large part thanks to Sequoia Capital, TLV Partners, and JLL Spark. Sequoia Capital is a returning investor founded by Don Valentine and located in Menlo Park, California. TLV Partners is a Tel Aviv-based firm dedicated to A-round startups, just like this one. Finally, JLL Spark, a division of real estate investment management firm JLL, is a software company that is a subsidiary in Stessa, Inc. Recently it was announced they would be taking on $100 million in global ventures, with this investment being part of that plan.
With the new funds, Skyline AI plans to add more asset classes to its platform which, in turn, will better allow institutional investors to make decisions about the properties they own. The new funds will help take their current technology to the next level. At the current level, the technology is already top of the line; its artificial intelligence utilizes data sets from more than 100 different sources and covers information from, at least, the past 50 years to function in the decision-making process. As a whole, their technology is aimed at providing fast and accurate analysis to allow investors to react even faster to the market.
From the first round and the most recent round, Skyline AI has been busy building its portfolio. In June of this year, they acquired two residential complexes in Philadelphia for over $25 million. Using their technology, Skyline AI was able to figure out that the properties were mismanaged. In the very next month, the company announced a partnership with Greystone to collaborate on the loan underwriting process.
According to CEO Guy Zipori, the Series A round of funding could not have come at a better time. “The timing of the round also worked out perfectly with our current deal flow and expansion plans. The round was significant, putting us in a great position to move.” In regards to the Series A and the strategic investors, Zipori went on to say, “This, in turn, will enable us to deepen and strengthen cooperation with the leading commercial real estate investment firms across the U.S.”
During the past few years, AI has disrupted many markets, so it is no surprise that the real estate market is feeling the same effects. In the words of Sequoia Capital partner, Haim Sadger “The power of Skyline AI technology to understand vast amounts of data that affect real estate transactions, will unlock billions of dollars in untapped value.”