Investor interest in proptech startups serving real estate owners and developers recorded another data point on Tuesday, as Banner announced that it closed at $10 million Series A funds to expand the capital expenditure (capex) platform for institutional real estate owners and developers.
Blackstone Innovations investments, Capital of Pruven, Fifth Wall, Core set ventures AND Y Combinator took part in the round. Banner plans to use the funds to expand into new markets and introduce products, as well as develop its team, including in the areas of research and design. Latest round brings all the capital raised by The banner is worth $13 million so far.
Co-founder: Mark Murphy AND Kunal Chaudhary in 2019, Manhattan-based Banner provides institutional real estate owners with visibility into capital expenditure at the portfolio and property level.
About a trillion dollars a month is spent on real estate development in the U.S., and the vast majority of that spending is tracked and managed in Excel workbooks, said Banner CEO Murphy. That’s a lot of manual data entry, incorrect information, and an overall lack of organization, leading to additional costs. Banner manages the entire investment process, from creating budgets, through bidding on projects, tracking project schedules, concluding contracts, invoicing and everything in between.
Murphy said Banner uses optical character recognition to collect and clean information from developers’ spreadsheets.
He explained that the greatest advantage of Excel is the ability to integrate with the accounting system in real time. Automatically agrees with Yardi, MRI software, Entrataor any other accounting system, which saves a lot of time. We take this vital information and put it into our software, and then the workflows we develop allow you to eliminate email and move to a streamlined process for everything related to capital expenditure.
The banners focus primarily on the multifamily space, including customers LivCor, Starwood, Morgan Properties, April’s apartment, Port GroupAND Hard-workingand others.
Our sales efforts will focus on a broader application in the multifamily industry, where we have made a strong name for ourselves, and then expanding into other industries such as office, retail and industrial where we have a smaller customer base, Murphy said.
Among Banners’ founders, an institutional real estate investor and a venture capital firm from the proptech industry see current and future development opportunities for the startup.
“We are excited to partner with Banner to ensure continued growth,” he said John Fitzpatrick, CTO of Alternative Asset Management Technologies at Blackstone. We were able to see with our own eyes the value the platform provides to property owners implementing a significant number of investment projects aimed at improving their properties. Mark and Kunal have a relentless focus on creating value for their customers and were looking forward to helping them continue to expand into new markets and expand their product offerings.
As a partner at Fifth Wall who co-leads an early-stage real estate technology venture capital fund, Sara Liu also sees future applications of the Banners platform.
“We really like the fact that Mark is building something that is applicable across all asset classes and is applicable to both new construction and existing developments,” Liu said. Banner essentially creates a true construction capital expenditure management tool that can be used across our base of over 110 people [limited partners].
Philip Russo can be contacted at: firstname.lastname@example.org.
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