Follow the Money Edition 1: Sunday, August 11th, 2024

Placer.AI raises at a $1.5B valuation, and Bigger Pockets is acquired by private equity

Deep Insight: Placer.ai and the future of real estate analysis

Placer.ai this week closed a $75M funding round at a $1.45B post-money valuation, up nearly 50% since its last round, a $100M Series C made at a $1B valuation in early 2022. The company declined to disclose specific participants in this latest fundraise except to note that existing backers participated, including real estate investment firm GEM Realty Capital.

The company crossed an annual revenue run rate of $100 million in February, and it has grown 80% in the last year and expects to grow another 60% this year. It has also passed 4,300 customers (up from 1,000 in 2022 when it raised the $100 million). The list includes real estate heavyweights Macerich and Regency Centers, as well as entertainment giants SeaWorld and Sony.

Israeli-based Placer.ai popped up on the scene in 2018 during a time when retail had largely been written off; ecommerce was the shiny new object, and malls were considered to be dinosaurs-in-the-making. In a world where leases are negotiated 5-7 years in advance, and business health is evaluated on quarterly P&L numbers, Placer offered real estate owners and retail operators a more real-time lens into their business. Foot traffic data. From, say, yesterday. Oddly enough, the COVID shutdowns which in many cases accelerated the death of brick-and-mortar businesses made this data extremely relevant, as major corporations scrambled to observe consumer behavior through waves of shuttering and opening the doors to their businesses.

Placer proved, in a time of necessity, that those with a vested interested in large-scale brick and mortar footprints are increasingly interested in understanding how their assets are performing, and via new or alternative data methods. Evidenced by the long list of real estate companies putting their money where their Placer.ai is.

VC Funding Rounds

• Placer.ai, a provider of alternative property insights, like foot traffic, raised $75M at a $1.5B valuation

• Adept Materials, a startup developing paints that absorb moisture, raised $4M in seed funding. D.R. Horton led, and was joined by PulteGroup

  • Quick insight: as homebuilders work to improve energy efficiency, they’re filling gaps in what used to be more “breathable” homes. The unintended consequence is trapping unwanted moisture that has led to numerous lawsuits. To remedy this, the builders have started investing in building materials that prevent mold and other long-term moisture problems