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It has been announced a while ago that GeoPhy, an AI-powered real estate valuation platform has raised USD $33 million (€29,106,000) from investors to boost its global expansion.
Led by Index Ventures
This investment is led by Index Ventures, the London and San Francisco-based venture capital firm. In addition, they were joined by existing investors Inkef Capital and Hearst Ventures.
Currently focused on commercial real estate (CRE), GeoPhy’s technology captures thousands of data-points from public and private sources, including satellite images and sales data.
It scours a growing database of 150 million property records for relationships between asset values and features such as location characteristics, demographics, and economic data like interest rates and stock indices.
The Delft-based startup also considers innovative ‘hyperlocal’ factors such as transport links, green spaces, the density of independent coffee shops, crime rates, and even the tone of reviews for local businesses.
Offers detailed and bias-free insight!
The standard approach to CRE asset valuation relies on a combination of intuition and limited, anecdotal data. The process can take between 30 to 45 days and cost between USD $4,000 – $6,000.
On contrary, GeoPhy’s use of supervised machine learning sifts through the breadth of traditional and unconventional data available today to provide detailed, bias-free insight about the current value and potential appreciation of CRE assets at scale for a fraction of the time and cost.
Brings it to near 0%
Currently, the average gap between a standard CRE appraisal and the actual sales price is between 5-6% in the US and UK. GeoPhy’s technology brings that error down to near 0% and reduces the median absolute percentage error in the US/UK from 15% to 5%.
Co-founded by two former architects, Teun van den Dries (CEO) and Sander Mulders (CTO), GeoPhy aims to bring greater transparency and accuracy to the global property market.
Van den Dries, GeoPhy’s CEO, commented:
Real estate is foundational to all areas of economic activity — to everyday life, in fact — but much of it is based on inaccurate or biased data. Furthermore, there’s an information asymmetry that distorts the market and leads to volatility. By providing a quicker, more reliable and intelligent service, GeoPhy helps its customers make better decisions, and promotes a better functioning market.
Stay tuned to Silicon Canals for more updates in the tech startup world.
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