CompStak, which pioneered a participatory approach to commercial real estate data as part of the first wave of startups in what is now known as “proptech,” raised $ 50 million in a new fundraising, the company said. The real deal.
Morgan Stanley Expansion Capital, the late stage venture capital arm of the investment giant, has led the Series C cycle, with participation from Mitsui Fudosan and Crow Holdings, which is investing the fortunes of the late real estate development giant. Trammell Crow. Real estate figures such as Convene founder Ryan Simonetti and former Savills CEO Mitchell Steir have also invested.
CompStak last raised around $ 14 million in a Series B round in 2019, and sold a minority stake in Moody’s in 2017. The company plans to use the new funds to grow its product and marketing teams and roll out a number of new products, CEO Michael Mandel said.
“The vision is to be the leader in commercial real estate data,” said Mandel, who co-founded the company in 2011 with CTO Vadim Belobrovka. “Do it through crowdsourcing and through partnership with industry. “
The 800-pound gorilla in this particular room, of course, is the CoStar Group, which has a market cap of around $ 33 billion and reported nearly $ 500 million in revenue last quarter; CoStar and CompStak have had legal skirmishes in the past.
While CompStak is best known for its crowdfunding office rental and investment sales offerings, in which brokers share information about new transactions in exchange for access to others, the share of revenue from the business from office owners is only about 15%, Mandel said. Much of its business comes from private equity firms, hedge funds, sovereign wealth funds, advisory firms, and occupiers, including Google.
The business “has somewhat isolated itself” from the pandemic onslaught on the office market, Mandel said, focusing on fast-growing areas of commercial real estate such as industrial, which has experienced record activity over the past 18 months.
Commercial real estate loans are also “back in force,” Mandel said, and “we were able to double down on third-party lenders”.
Mandel declined to disclose CompStak’s new valuation and did not provide details on earnings except to say they were in the “tens of millions.” When asked if the business was profitable, he replied, “we are not, but we could be,” echoing comments from other proptech founders on the focus on growth. at a time when investors are keenly interested in the sector. Nick Romito of VTS, another early-stage entrepreneur in the proptech space, recently said TRD that “the markets do not value” profitability.
CompStak, which has around 100 employees, is headquartered at 36 Cooper Square in Hartz Mountain, a building with serious Pedigree of Silicon Alley. It also has offices in Los Angeles, Chicago and Belgrade, Serbia.
Mandel, a former office rental broker, has said he will look to increase the company’s headcount and office footprint.
“We’re one of those few companies,” he said, “that’s back in the office and needs more space. “