The advent of new technologies, specifically access control solutions, is changing the landscape of real estate, allowing the industry to respond to customer demand and modernize its digital infrastructure. Cloud-based systems allow any door, on any property, to be controlled remotely with just a smartphone, providing unparalleled convenience to residents and tenants. ButterflyMX redefines the role of the intercom with its cutting-edge wireless, touchscreen hardware that pairs with its mobile app software that allows residents to easily manage property access through their smartphone. Already installed in 6500+ properties, ButterflyMX smart intercom solution provides video calling straight to your smartphone – so residents can see exactly who it is outside. If you have planned visitors coming, ButterflyMX will generate a unique QR Code or delivery pin that lets visitors enter the building with ease. ButterflyMX is used by buildings that are owned, operated, or managed by some of the biggest names in real estate such as Greystar, Bozzuto, CA Ventures, Lennar, Lincoln Property Company, and Equity Residential. The company started by focusing on entryway access but has expanded its capabilities to include full building access to shared spaces like gyms, other amenities, and communal areas.
AlleyWatch caught up with ButterflyMX CEO Aaron Rudenstine to learn more about the company’s traction, genesis, strategic plans, latest round of funding, which brings the total funding raised to $108.5M, and much, much more.
Who were your investors and how much did you raise?
We secured a $50M Series D funding round in partnership with some amazing firms. JMI Equity led the round, with participation from Volition Capital, Egis Capital, and RiverPark Ventures, all of whom are expanding their backing of ButterflyMX.
Tell us about the product or service that ButterflyMX offers.
Real estate is changing and ButterflyMX helped facilitate that change by re-shaping the tenant experience. We started by innovating on a technology that hadn’t been improved in decades, the intercom.
Since that initial emphasis on reshaping the intercom, ButterflyMX has introduced a fully unified property access solution, which integrates intuitive hardware with software and mobile applications. This gives building owners, managers, residents, and visitors complete control of their experience.
ButterflyMX’s unified property access solution consists of:
- Video intercoms for property access
- Package rooms for seamless deliveries
- Elevator controls for access to a specific floor
- Keypads for access into amenity spaces, garages, and auxiliary rooms
- Key lockers for access into apartment units with traditional locks
- Smart lock integrations for access into apartment units with smart locks
What inspired the start of ButterflyMX?
ButterflyMX’s founder, Cyrus Claffey, came up with the idea for the company after his experience with the intercom system in a new home in Brooklyn. His interactions with an antiquated system in what was meant to be a modern building showed him that there was an opportunity to improve this experience. The reliance on needing to be physically present to answer muffled audio and failing hardware presented an opportunity to explore a better way to connect tenants and visitors.
The “aha moment” came when we realized that we could integrate the user experience of a tablet–with features such as video calling, remote connectivity, and additional applications–with the hardware that buildings rely on for controlling access. Cyrus utilized his background in designing building infrastructure to identify how to address the pain points that building owners and managers experienced, as well.
How is ButterflyMX different?
ButterflyMX’s open platform sets us apart from the rest. Our open API/SDK offers endless partnership possibilities to improve their user experience within their current platform while benefiting from ButterflyMX features and functionality. It’s the best of both worlds, and we’re thrilled to share this solution.
What market does ButterflyMX target and how big is it?
ButterflyMX knows that buildings of any size experience a common challenge of ensuring that their occupants have safe and secure access. That said, we see the continued growth of multi-family, mixed-use, and educational buildings as a tremendous opportunity to deliver better tenant experiences moving forward. For example, according to Department of Housing and Urban Development data, approximately 32.6 million residences, or 24.6% of housing in the U.S. today, are multifamily and data is showing a resurgence of mixed-use building starts in New York.
What’s your business model?
ButterflyMX designs, engineers, and creates hardware and software that enables people to manage building access experiences through a smartphone. We sell our hardware to property owners and license our software through a monthly software as a service (SaaS) model.
What are your post-COVID office plans??
ButterflyMX is fortunate to have had a distributed workforce prior to the pandemic. As we now know, there likely won’t be a “post-COVID” and we are striving to ensure that our teams are supported and connected to continue to drive our innovation forward.
What was the funding process like?
We are fortunate to have Volition Capital, Egis Capital, and RiverPark Ventures be part of this round. They had all been previously involved and are valued partners. These partners, along with JMI Equity, have all seen how the lines between work and home have been blurred over the past year and a half, and why it is so important to create greater efficiency for tenants whose work situations have changed. They recognize how ButterflyMX is rising to meet these challenges and continue to innovate, and we are excited to work toward the future together.
What are the biggest challenges that you faced while raising capital?
Choosing the right investment partner. We were lucky to have a large number of firms interested in investing in us. Choosing the right partner was about selecting one that matched our vision for the future of real estate.
Choosing the right investment partner. We were lucky to have a large number of firms interested in investing in us. Choosing the right partner was about selecting one that matched our vision for the future of real estate.
What factors about your business led your investors to write the check?
Our strong growth and low churn were the factors that led investors to write us a check.
What are the milestones you plan to achieve in the next six months?
We plan to hire 100 new employees in the next 6 months.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Continue to focus on your customers. As long as you’re delivering value for your customers, the rest will follow.
Where do you see the company going now over the near term?
We are really looking forward to keeping our heads down and focused on delivering an amazing experience to all of our customers and their tenants. We are continuing to expand our capabilities and who we offer them to and there’s no sign of stopping that momentum.
What’s your favorite outdoor dining restaurant in NYC
Quality Bistro on 55th Street.
