VendorPM, a proptech company that connects building managers and service vendors, today announced raising a $20 million Series A led by Prudence, an early-stage venture capital firm investing in real estate technology.
The funding follows VendorPM’s recent $6 million seed round led by Bessemer Venture Partners in February. The company says the funding is intended to fuel business expansion into the U.S., with key markets including Chicago and Washington D.C., and to improve its platform and teams.
It will also allow VendorPM to focus on new product offerings for its vendors and property management team, including with new payment technologies which it says will improve management and vendor workflow.
Other participants in the funding include Bessemer Venture Partners, Navitas Capital and Alate Partners. Among strategic investors were Colliers and RXR; Dick Costolo, the former CEO of Twitter; Mark Rose, the chair and CEO of Avison Young, among others.
Vendor PM CEO Emiel Bril says the real estate industry’s need for modern solutions must increasingly cater to people’s busy lifestyles and tighter budgets. Hence, innovation is necessary in cutting costs.
“That is why our industry is turning to VendorPM; to cut operating costs in a meaningful way while enabling their teams to buy-back precious time in an otherwise outdated workflow,” said Bril, in the release. “This $20 million investment will ensure that as our users’ expectations increase, we continue to raise the bar, and set a new industry standard.”
Prudence is also an early investor in proptechs like Casafari, Compass (COMP), CREXi, Evernest, Hemlane, Maxwell, Morty, Properly and Sundae.
“Property managers in North America alone spend over $400 billion to service their buildings each year and almost all of this spend is procured, managed and paid manually,” said Gavin Myers, managing partner of Prudence, in the statement. “VendorPM is building the automation layer for this massive segment and we’re thrilled to partner with Emiel and the rest of the VendorPM team as they address this global opportunity.”
The VendorPM software as a service (SaaS) platform is currently used across 5,000 buildings and around 40,000 service vendors across Canadian and American cities.
As per the release, it also hosts more than 120 commercial real estate organizations and property management groups like Colliers, Golub & Co, Avison Young, and BentallGreenOak.
The company says its software helps obtain several bids across building services and simplify the process. It also claims to help property management firms “unlock standardized visibility” and to update their workflows.
In other recent proptech news, SingleSource Property Solutions, a property service provider, launched its new SingleSource Attorney Conclusion of Title (ACT) service. Southwest Multiple Listing Service also partnered with Rental Beast.