Commercial real estate development has many moving parts – parts that need to move in unison to ensure projects are completed in a timely manner and within budgets. However, most CRE development still relies on manual, data-entry tasks that are time-consuming, tedious, and prone to human error. Northspyre is the cloud-based intelligence platform made for real estate development that eliminates redundant work through automation. The platform saves approximately 30% of the time that is typically allocated for data entry tasks. Northspyre also harnesses the data that flows through these CRE projects, enabling project teams to make better, faster, and more informed decisions. Northspyre currently serves 35+ customers that manage a range of projects and portfolios with budgets starting at $100K and surpassing $500M. Since its launch three years ago, Northspyre has managed more than $13B in customer projects and has helped users save 2-8% in overall project costs.
AlleyWatch caught up CEO and Cofounder William Sankey to discuss learn more about how his experience as a real estate developer led to the formation of Northspyre, the company’s traction, and recent funding round.
Who were your investors and how much did you raise?
We raised $7.5 million in Series A funding led by David Sacks’, with participation from Tamarisc Ventures.
Tell us about the product or service that Northspyre offers.
Northspyre is a cloud-based intelligence platform made specifically for real estate owners, developers, owner’s representatives, and internal real estate teams. It harnesses the power of automation, data analytics, and proactive insights to help project teams deliver projects on-time and on-budget while saving up to 30% of their time and up to 8% in overall project costs.
Northspyre is a modern offering meant to disrupt the status quo and give real estate professionals more control over their most complex projects. Currently, most project teams rely on outdated methods of cost tracking and project reporting, like error-prone spreadsheets and clunky, legacy applications, which fail to leverage modern technology, automation or data analytics like other high-skilled industries (finance and manufacturing, for instance). Northspyre is changing traditional project delivery and providing real estate professionals with the tailor-made solution they deserve.
What inspired the start of Northspyre?
As a former NYC real estate developer, I’ve witnessed firsthand how the industry is held back by traditional, outmoded processes and thinking. I spent many late nights reconciling disparate spreadsheets, correcting formula errors, and trying to make sense of siloed information. I was convinced there was a better way to manage complex, multi-million-dollar projects that didn’t involve paper-based workflows, data entry, filing cabinets and “gut feelings”. Not to mention, I saw a huge opportunity to harness all the data that flows through CRE; other high-skilled industries were already taking advantage of data analytics to make better, faster, and more informed decisions, why couldn’t real estate developers do the same? So, I learned how to code and started creating my own one-off applications to modernize project delivery. Northspyre evolved from there.
How is Northspyre different?
Northspyre is a modern and sophisticated software built by real estate professionals for real estate professionals driving project delivery.
Most existing software systems simply move the work that teams were doing, in spreadsheets, into the cloud (Cloud 1.0) or onto a desktop application, but teams still have to do the work. Or they have to corral their vendors to do it. Northspyre takes things a step further. It eliminates entire time-consuming workflows by leveraging the power of automation while using its intelligence to proactively comb through project and portfolio data to offer critical insights and actionable next steps (Cloud 2.0).
In short, Northspyre completely eliminates data entry and significantly reduces data entry tasks that bog down otherwise productive project teams. It empowers them with real-time data to make more proactive, informed decisions on even their most complex projects. Also, Northspyre’s sophisticated and intuitive user interface provides never-before-seen, real-time access to a treasure trove of data, which helps to drive more predictable project outcomes. That real-time visibility into cost and schedule data not only empowers day-to-day project teams but provides senior leadership, financial partners, clients, and other key stakeholders with a clear view into what is happening across a project or portfolio – 365 days a year.
What market does Northspyre target and how big is it?
We are focused on the largest segment of the $16T US commercial real estate space –the “creation” side. These are the millions of professionals involved in the design, development, and investment in the creation of real estate. Within that, we currently service a range of customers across the US and are looking to expand into the top 25 major markets.
What’s your business model?
We are a B2B SaaS with a recurring revenue model.
How has COVID-19 impacted your business?
As the commercial real estate industry grapples with the impact of COVID-19, Northspyre’s flexible, cloud-based technology has experienced its highest user engagement since its founding. Real estate professionals have turned to Northspyre to maintain continuity in project delivery and provide a critical, collaborative hub for teams now working remotely. Northspyre also acts as a centralized repository for institutional knowledge to ensure teams never lose critical information – especially during times of transition.
What was the funding process like?
Considering this was my first Series A funding process, I felt that it was fairly typical. We feel lucky to have found a partner in Craft Ventures while continuing to have the support of Tamarisc Ventures.
What are the biggest challenges that you faced while raising capital?
In light of COVID-19, we naturally had concerns that our ability to secure funding could be impacted. Fortunately, this wasn’t the case, and we found a founder-friendly partner that truly believes in our mission and sees our growth potential.
What factors about your business led your investors to write the check?
Our investors are entrepreneurs themselves, so they fully understand what it takes to start, run, and grow a business like ours. They immediately recognized the value we bring to commercial real estate and see significant headroom for growth.
What are the milestones you plan to achieve in the next six months?
We have plans to grow the Northspyre team, accelerate our product roadmap, and enhance our offerings and services for existing customers. We’re also focused on refining our enterprise offerings for internal real estate teams. Stay tuned!
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Be very mindful of how you are allocating your current funds. Northspyre has always been extremely capital efficient and, in light of current economic conditions, this could be a saving grace for many companies.
Be nimble. Companies that are able to quickly and strategically adjust their strategy to meet market conditions and demand are more likely to survive and thrive. See challenges as opportunities.
Be nimble. Companies that are able to quickly and strategically adjust their strategy to meet market conditions and demand are more likely to survive and thrive. See challenges as opportunities.
Where do you see the company going now over the near term?
Right now, we’re focused on growth and providing the best products and services to our current and future customers. We also plan to release more enterprise-level features to continue capturing that market in the months to come.
What’s your favorite restaurant in the city?
Speedy Romeo in Clinton Hill.
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