Bowery Valuation, a New York-based company that we told you about last year, has raised $12 million in Series A funding for its tech-enabled real estate appraisal platform. The 3.5-year-old company raised the capital from Corigin Ventures, Camber Creek, Navitas Capital, Fika Ventures and Builders.
Bowery caught our attention initially because, like a lot of real estate technology companies, it’s tackling some clunky processes that you might imagine would have been solved long ago. For example, its mobile app enables appraisers to tick off items, rather than write everything down. It automatically pulls in public record data so that appraisers needn’t surf the web to find what they need. It enables passive databasing, meaning that rental and sales comps that are often lost today can be found via a map-based search. It also uses natural language generation to help its appraiser clients produce reports.
What has changed since we last talked: the company was beginning to sell a white-label version of its app to customers, and it has since shifted toward focusing its entire product and engineering team on its own internal software.
It has also expanded its footprint more slowly than it thought it might. Though the company is currently licensed and working throughout New York, New Jersey, Pennsylvania and Connecticut, it hasn’t reached numerous farther-flung cities that continue to remain in its sights, including L.A. and Chicago.
Both are “still our first two choices for expansion,” says co-founder Noah Isaacs, adding that Bowery’s goal is now to “be in at least one of those two markets within the next nine to 12 months, with the other to follow shortly. We held off on expanding into new geographies prematurely, as we felt we had a lot more room to grow just in the tri-state area.” (Isaacs says the company has more than tripled its customer base and revenue since we last talked with the company last March.)
Though Bowery today focuses on multi-family and mixed-use assets, it also plans to expand to other commercial properties this year, says Isaacs.
Isaacs and his best childhood friend, John Meadows, founded Bowery in 2015 after working together at the same appraisal firm in New York and seeing plenty about the business on which they could improve. After bringing aboard as CTO Cesar Devers, a Princeton grad who’d studied economics and worked on several startups after graduating, the three got to work, applying and gaining acceptance shortly afterward to MetaProp NYC, a local accelerator program that focuses exclusively on real estate.
Bowery, where Meadows and Isaacs are co-CEOs, has since raised $18.8 million altogether, including from real estate giant Cushman & Wakefield.