Cherre just raised $50 million from growth equity investors to expand its real estate data platform. Trustbridge Partners led the proptech company's round, while Glilot Capital Partners, Intel Capital, Navitas Capital, and Carthona Capital also joined.
What's Cherre up to?
There's no shortage of real estate data out there. The problem is aggregating all the data sources to make meaningful decisions. Meanwhile, each provider is very protective of its data and tends to be fearful of letting anyone else distribute it.
Cherre's response to this problem, according to founders Ben Hizak and L.D. Salmanson:
"Our vision for Cherre has always been extremely far-reaching -- transform real estate investing, underwriting, and management into a science. To achieve that goal, we would need to convince the entire industry to work together for the first time. We would need to bring every data vendor into the network to share data with Cherre, and for many, this would be the first time they've ever shared data with anyone at all. We would need them to allow us to connect and deliver that data to their clients in a secure and controlled manner.
"Working together creates significantly more value for their clients, increasing stickiness and longevity," they added. Hizak and Salmanson also say that many companies have tried and failed in the past to aggregate datasets due to the protective and territorial nature. That's why Cherre is aiming to take more of a collaborator stance rather than come off as a "poacher."
Cherre said that there was a significant amount of inbound interest for this deal. Last year, the company added around 40 new data connection partners to the platform while annual recurring revenue (ARR) tripled.
For context, data is used for all aspects of the real estate business: underwriting, financing, acquisitions, management, leasing, and portfolio management. Those business operations come with a lot of different datasets.
Data is coming from places like Salesforce (NYSE: CRM), Compstack, proprietary data in Microsoft Excel (NASDAQ: MSFT), VTS, tax assessment data and other public records. The list goes on. Cherre takes all of this and integrates it into one so decisions can be made without having to jump around and make so many inferences. It can turn real estate into more of a science.
From the investors
Trustbridge Partners spoke highly of not only the product but the team as well. The firm was founded in 2006 with roughly $11 billion under management. Yoon Chang, co-head of the U.S. investment team at Trustbridge, said: "The technological infrastructure and high-quality data underpinning Cherre's platform are unparalleled. The resulting value proposition to both customers in providing a single source of truth for real estate data as well as to data partners in driving distribution is incredibly compelling."
The Millionacres bottom line
Could this finally be the tool that makes it easier to sift through the plethora of data out there as a real estate investor? Time will tell. Regardless of your size or experience as an investor, this is an important lesson in thinking about how to best capitalize on the data available to you.