Real Estate AI Startups: Early Adopters of AI Technology

The real estate industry has experienced a paradigm shift with the introduction of artificial intelligence (AI) and the emergence of Real Estate AI startups. This groundbreaking technology has revolutionized the roles of appraisers, mortgage lenders, developers, and homeowners, bringing forth significant transformations in their day-to-day operations.

In this article, we delve into the emergence of innovative Real Estate AI startups and companies for the last 5 years, exploring how they harness AI’s potential to reshape the speed and effectiveness of real estate transactions.

 

The Growth and Potential of AI in the Real Estate Industry

As AI continues to gain momentum across various sectors, real estate businesses have eagerly adopted AI systems and witnessed significant benefits. Operational costs have plummeted for nearly half of real estate business owners, while an impressive 63% have reported revenue growth following the implementation of AI solutions, as highlighted by McKinsey research (source 1, 2).

The market for generative AI in the real estate industry is also poised for substantial growth. Projections indicate that by 2032, the market size will soar to approximately $924.2 million, expanding at a robust compound annual growth rate (CAGR) of 11.2% during the forecast period from 2023 to 2032 (source).

However, despite the optimism surrounding Real Estate AI Startups, there remains a need for strategic considerations by established players and investor sentiment to fully realize the potential of AI in the real estate industry.

While proptech venture capital (VC) investments, including investments in Real Estate AI Startups, have reached impressive levels, surpassing $8 billion in equity and debt investments in the first half of 2022, the true impact of AI will depend on the integration of this technology into the workflows of major residential firms (source).

Prominent Real Estate AI Startups

To provide you with a comprehensive overview of the rapidly expanding realm of real estate, including the innovative contributions of Real Estate AI startups, we have curated a collection of prime examples highlighting how companies are leveraging artificial intelligence (AI) to disrupt and transform the industry.

 

Hyro

• Website: hyro.ai
• Industry: Software Development
• Company size: 51-200 employees
• Founded: 2018
• Headquarters: New York, US

 

Hyro is at the forefront of global connectivity, enabling thousands of AI-powered conversations simultaneously.

How the startup addresses real estate problems with AI:

 

Hyro is a pioneering company that leverages conversational AI technology to revolutionize the real estate industry. Through their AI chat and voice interfaces, Hyro provides a seamless experience to customers, even when live agents are unavailable.

These advanced interfaces are designed to address various real estate challenges by offering functionalities such as property matching, scheduling viewings, lead capturing and follow-up, and providing accurate responses to customer queries based on real-time information updates.

Funding:

Hyro has successfully raised substantial funding through 7 rounds of investments, with the latest Series B round on May 30, 2023, securing $20 million.

 

Entera

• Website: entera.ai
• Industry: Real Estate
• Company size: 51-200 employees
• Founded: 2018
• Headquarters: New York, US

 

Entera, a leading SaaS and Services platform catering to Enterprise and Mid-Market Single Family Investors, revolutionizes the real estate investment landscape by offering seamless solutions for buying, selling, and operating investments.

How the startup addresses real estate problems with AI:

The startup tackles real estate challenges head-on by harnessing the power of AI. Through their cutting-edge platform, Entera streamlines processes with automation and leverages intelligent analytics to assist customers in the discovery, acquisition, and management of single-family homes.

With a strong presence in over two dozen U.S. markets, Entera’s platform facilitates a staggering number of transactions, exceeding 1,000 per month. This robust platform equips investors with invaluable tools and insights to make informed decisions and optimize their real estate portfolios.

Funding:

Entera has successfully secured substantial funding from two investment rounds. The latest Series A round, held on June 29, 2021, garnered an impressive $32 million.

 

LocalizeOS

• Website: localizeos.com
• Industry: Software Development
• Company size: 51-200 employees
• Founded: 2019
• Headquarters: New York, US

 

Headquartered in New York City, with operations in NYC, Chicago, and South Florida, and plans for expansion to other major U.S. metros, LocalizeOS has developed the most advanced Operating System for Real Estate.

How the startup addresses real estate problems with AI:

 

LocalizeOS addresses real estate challenges by leveraging artificial intelligence through their innovative Hunter app. The Hunter app serves as a concierge texting service that combines artificial and human intelligence to consistently engage real estate agents’ leads.

It creates a comprehensive profile of potential buyers, including relevant information such as budget and pre-approval status. Users receive regular updates on the progress of their leads, and Hunter alerts them when a buyer is ready to start visiting properties.

By utilizing AI, LocalizeOS streamlines lead management and provides agents with actionable insights, empowering them to make informed decisions and maximize their efficiency in the competitive real estate market. With LocalizeOS, agents powered by the platform close, on average, 20% more deals than their peers.

Funding:

On August 4, 2021, Localize announced a successful Series C funding round, securing an investment of $25 million.

Plunk

• Website: getplunk.com
• Industry: Financial Services
• Company size: 11-50 employees
• Founded: 2019
• Headquarters: Bellevue, Washington

 

Plunk is a groundbreaking company at the forefront of AI-powered, real-time home analytics. Their platform is revolutionizing the way homeowners, real estate professionals, and investors evaluate and invest in residential real estate.

How the startup addresses real estate problems with AI:

 

To tackle the challenges in the real estate industry, Plunk collaborates with Milestones.ai, offering AI-driven remodel advice to homeowners through their Homeowner Management System. This integration combines Plunk’s Remodel Value and Project Recommendations, providing valuable insights to homeowners.

Plunk’s Remodel Value feature calculates the expected value of a home after a comprehensive renovation, while Project Recommendations categorize renovation projects based on their estimated value contribution to a specific property.

Covering over 104 million homes nationwide, Plunk’s real-time home analytics platform unlocks the potential of AI to advise homeowners on how to maximize their property’s value.

Funding:

On November 11, 2022, Plunk successfully raised funds in a venture round, the specific details of which remain undisclosed.

 

Likely.AI

• Website: likely.ai
• Industry: Real Estate
• Company size: 11-50 employees
• Founded: 2018
• Headquarters: Austin, Texas

 

Likely.AI was founded with the goal of making artificial intelligence-as-a-service accessible to the real estate industry. They offer prediction models, impact models, and smart data enhancements to provide the industry with the intelligence needed to allocate resources effectively.

How the startup addresses real estate problems with AI:

Likely.AI addresses real estate challenges by integrating the powerful ChatGPT language model into their suite of AI models for the real estate industry. Their Likely Seller model utilizes predictive analytics to identify homeowners who are most likely to sell their property in the near future, while their Likely Foreclosure model identifies homeowners who may be at risk of foreclosure.

By integrating ChatGPT with these advanced AI models, Likely.AI enables real estate professionals to create highly personalized and effective marketing campaigns. The language model’s understanding of natural language and ability to generate human-like responses allows professionals to write context-specific sales copy that resonates with potential clients on a personal level.

Funding:

Likely.AI’s funding seed round raised $225,000 on August 31, 2021.

 

Built AI

• Website: builtai.co
• Industry: Software Development
• Company size: 11-50 employees
• Founded: 2021
• Headquarters: London, United Kingdom

 

Built AI is a London-based proptech startup founded by Firoz Noordeen, Natan Lempert, and Jeffrey Ng. The company offers a cloud-based software-as-a-service platform that empowers real estate investors with data-driven insights.

How the startup addresses real estate problems with AI:

Built AI addresses real estate challenges in the commercial sector by leveraging natural language processing (NLP) and artificial intelligence (AI) to extract key data from property brochures uploaded by users. By using NLP, the platform can efficiently analyze property information and provide commercial real estate investors with valuable insights.

The startup’s platform aims to save investors time when assessing properties by automating the extraction and analysis of relevant data from brochures. This information is then utilized to generate a business plan that includes estimated rates of return for potential investments.

Built AI’s approach improves the evaluation process for commercial real estate deals by providing transparent data that was previously lacking.

Funding:

Built AI has secured a total of three funding rounds. The most recent seed round took place on July 31, 2022, raising $2.5 million.

CREX Capital

• Website: crexcapital.io
• Industry: Financial Services
• Company size: 2-10 employees
• Founded: 2022
• Headquarters: Berlin, Germany

 

CREX Capital, established by Marc Wohlschlaeger, Dr. Maciej Merkel, and Michael Wetzel, brings together a wealth of expertise with over 50 years of combined experience in commercial real estate finance and banking.

How the startup addresses real estate problems with AI:

CREX Capital aims to revolutionize commercial real estate financing by offering a comprehensive end-to-end lending infrastructure and pioneering the concept of a licensed real estate neobank. Their platform addresses the pain points in CRE financing by providing a banking-level solution that incorporates AI-driven reasoning and evaluation of environmental, social, and governance (ESG) impact.

The conventional CRE financing process often suffers from opacity, high costs, redundancies, and manual procedures. This inefficiency has led to a heavy reliance on intermediaries and exorbitant transaction costs. CREX Capital aims to transform this landscape by streamlining the process, reducing costs by more than 50%, and expediting transaction speed from months to mere days.

Funding:

CREX Capital successfully raised funds through a convertible note round on February 6, 2023. The specific details regarding the funding amount remain undisclosed at this time.

 

DataFlik

• Website: dataflik.com
• Industry: Real Estate
• Company size: 2-10 employees
• Founded: 2020
• Headquarters: Columbus, OH

 

DataFlik provides an AI-powered platform that offers List Stacking and Predictive Modeling services to the real estate industry.

How the startup addresses real estate problems with AI:

DataFlik is a real estate AI startup that addresses industry challenges by providing advanced data analytics and marketing solutions. Their machine learning model, developed by NineTwoThree Venture Studio, accurately identifies motivated home sellers, enabling real estate buyers and wholesalers to target their marketing efforts more effectively.

These ML models process massive amounts of data from various sources, including National Recorder and Tax Assessor Databases, US Census, and Credit Bureau data, resulting in more accurate lists. Compared to traditional lists generated through human analysis, DataFlik’s ML-generated lists have generated 8 times higher return on investment (ROI) for their customers.

The startup’s focus on data analytics and predictive modeling allows real estate professionals to optimize their marketing strategies. DataFlik’s List Stacking and Predictive Modeling help identify homeowners most likely to sell, reducing marketing spend while driving more deals.

Funding:

No information about funding rounds for DataFlik.

 

Zuma

• Website: getzuma.com
• Industry: Software Development
• Company size: 11-50 employees
• Founded: 2021
• Headquarters: Santa Monica, California

 

Zuma is an AI-driven startup based in Santa Monica, California. They offer lead scheduling software for owners and rental managers in the real estate industry.

How the startup addresses real estate problems with AI:

Zuma’s lead scheduling software provides features such as automated lead follow-up, lead qualification, tour scheduling, communication management, lead volume management, and tour rescheduling. By automating these tasks, Zuma helps real estate professionals save time, reduce manual efforts, and enhance lead conversion rates.

The startup leverages AI and machine learning technologies to create an automated sales agent that interacts with 100% of inbound leads. This AI-powered agent engages in conversations with leads, providing personalized support and assistance.

Zuma has gained recognition and support from world-class investors, including Y-Combinator, Liquid 2 Ventures (Joe Montana’s fund), Day One Ventures, Soma Capital, and notable angel investors.

Funding:

Zuma has raised a total of three funding rounds, according to Crunchbase. The most recent funding round was a seed round on November 18, 2021, where they raised $6.7 million.

 

Oda Studio

• Website: odaportal.com
• Industry: Real Estate Technology
• Company size: 11-50 employees
• Founded: 2019
• Headquarters: Los Angeles, California

 

The startup Oda Studio specializes in providing advanced photo enhancement, virtual staging, and digital asset management solutions for the real estate industry.

How the startup addresses real estate problems with AI:

 

They offer photo enhancement, virtual staging, and digital asset management capabilities, leveraging their exclusive artificial intelligence technology.

Oda Studio’s AI technology analyzes property photos, assessing them for technical and aesthetic qualities using machine learning models. They can identify different parts of the photo and objects in the room through segmentation techniques. Additionally, they utilize cutting-edge GAN models for image restoration and offer various layers of custom enhancements based on the image content.

Funding:

Oda Studio incubated by Y Combinator and MIT, successfully secured $2.8 million on December 8, 2021

 

Why Ascendix as Your Premier Partner for Proptech Development

In the ever-evolving landscape of real estate and technology convergence, staying ahead of proptech trends has become paramount. The time is ripe to proactively embrace disruptive AI technologies. As a seasoned proptech development firm with 16 years of experience in real estate and professional services, we are uniquely positioned to cater to your needs. Here’s why our clients consistently choose us:

• Headquartered in Dallas, Texas, we possess an intimate knowledge of the local real estate market, enabling us to navigate its intricacies with precision.
• We have successfully developed groundbreaking proptech solutions for esteemed industry giants such as JLL and Colliers, solidifying our reputation as a trusted partner.
• With a legacy dating back to 1996, we have been at the forefront of business tech innovation, consistently adapting to the ever-changing technological landscape.
• Operating from three offshore offices in Europe, we provide competitive development rates without compromising on the quality of our services, ensuring round-the-clock project delivery.
• Not only do we boast extensive expertise in the real estate domain, but we have also created our own suite of products designed to streamline operations for real estate professionals, automating mundane tasks and fostering efficiency.

Contact us, and we will ensure that you address them effectively with intelligent proptech solutions that yield long-term dividends.