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Property intelligence platform Archistar has secured $11 million in funding and announced its first acquisition amidst plans to deploy its technology - already used in Australia by the likes of Stockland (ASX: SGP) and Mirvac (ASX: MGR) - in the United States.
High-profile investors including NAB Ventures, Skip Capital, Skyfield, AirTree Ventures and other private investors have put their weight behind Archistar, which combines architectural design with artificial intelligence to inform decision making in the property sector.
At the same time as the company prepares to launch in the United States in the coming weeks with an office in Dallas to be led by former Nearmap (ASX: NEA) executive Shane Preston, Archistar has also acquired Snaploader, another Sydney-based outfit whose software provides interactive 3D experiences for real estate professionals to simplify property sales and marketing.
This will augment Archistar's offering that has become a cornerstone product for 3D building designs domestically, buttressed by AI solutions that save hours of work for users, including clientele such as CBRE, Frasers Property, Ernst & Young, Brookfield and JLL.
Dr Benjamin Coorey, who co-founded the business with his brother Rob in 2018, says the acquisition brings Archistar one step closer to becoming a one-stop-shop for the entire property process.
"We are raising the bar and creating the experience consumers want. Snaploader is already working with some of the biggest names in the property sector, including Charter Hall, Knight Frank and Colliers International," he explains.
"The unique technology allows the visualisation of off-the-plan projects across residential, commercial and industrial buildings to streamline the selling process. We are delighted to bring the Snaploader technology and its very talented team under the Archistar banner."
The CEO said the team was very pleased with the results of this latest funding round, which takes the total amount raised to $31 million including a $6 million raise in April 2021 with backing that time as well from AirTree and Skip; the latter founded by Kim Jackson who is married to Atlassian co-founder Scott Farquhar and whose fund has invested in the likes of Canva, Work180, Culture Amp, Harrison AI and Qwilr.
"We are very excited by the new technology we are building and having the support from strategic investors helps us continue to scale our world-first technology internationally," Benjamin Coorey, who was named number 28 in the 2021 Australia’s Top 100 Young Entrepreneurs list alongside Rob. Both brothers were also finalists in last year's Sydney Young Entrepreneur Awards.
One of the key advantages of Archistar's software is that it gives architects, planners, developers and agents instant information on the type of residential projects permitted on a site, given local planning and zoning rules. This means that expansion overseas requires developing an understanding of laws in any jurisdiction of operation, but Archistar claims to be across the local rules in Texas where it has a property developer client lined up to use its software.
From there the group plans to expand into Florida, California, North Carolina, Arizona and Virginia in the coming years as it gets across local planning and restrictions. To do that, the company is working with US property data providers including First American, BCI Build Central and Australian success story Nearmap.
Archistar's recruit from Nearmap, Shane Preston, was involved in taking that company's aerial mapping technology company across the Pacific.
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