Honest Buildings, one of several major startups set on disrupting New York’s conservative real estate industry, has raised $21 million in its second round of venture capital investment, reported Cranes.
Oxford Properties Group, a big investor in the Hudson Yards Project, and the Durst Organization were new backers who joined the Rudin family, Brookfield Properties and a series of venture capital funds in supporting the startup, which has taken in $36 million so far.
Honest Buildings lets landlords keep track of repair projects and vendors for a portfolio of properties and find opportunities to cut costs using a cloud-based enterprise-computing platform. This is intended to be an upgrade from the spreadsheets and lack of real-time progress reports from the past.
“Aggregating data across properties should improve transparency,” said Riggs Kubiak, Honest Buildings founder and CEO. “Owners fund all the work and take all the risk but are at a disadvantage negotiating with their vendors.”
Honest Buildings predicts it will make more than $10 billion in transactions happen this year, after facilitating $6.5 billion in 2017. The global market for this space is estimated at $10 trillion.
The city’s big real estate firms are becoming more interested in investing in this sector. The Rudin Venture arm of the family-operated company holds 10 investments in tech companies and funds, 80% of which are based in New York.