CREXi Gets $30 Million in New Investments
In the United States, Los Angeles is widely considered as among the prime areas in commercial real estate investments. The fact that there’s a boom, of a sort, in investments in technology companies in the region doesn’t come as surprise for this reason.
CREXi is definitely at the forefront of the commercial real estate marketplace and, thus, is among the technology companies benefitting from the boom in investments. With its strong presence in the market, particularly with its digital marketplace and tool kit, it’s a preferred place for buyers, sellers, and investors.
The last time CREXi secured investments in an institutional round was in 2018. Since then, it has expanded its portfolio by adding over 300,000 property for sale or rent across the country. It has also seen an increase in its number of users to 6 million customers.
The recent round of institutional investments raised $30 million from several well-known investors including Industry Ventures, Mitsubishi Estate Company, and Prudence Holdings. The likes of Jackson Square Ventures and Lerer Hippeau Ventures, which have previously invested in CREXi, also participated.
CREXi earns in three ways, namely:
- A subscription service where brokers can search for property to sell or rent
- An auction service that allows CREXi to earn a fee with every completed transaction (i.e., closed deal)
- A data and analytics service where users can view the latest trends and get information about the commercial real estate industry via the property listed on the company’s database
According to CREXi executives, it’s the only technology company that takes users from property marketing to the close of a sale or lease transaction on a single platform. Every broker, buyer, and seller will likely find a suitable service for their needs and wants in real estate transactions here.
Mike DeGiorgio, the CREXi CEO, also asserts that it’s a recession-proof company because of its auction services. He adds that when more distressed real property is placed on the market, these are best sold through online auctions – and CREXi is in the best position to provide the service.
Through its online platform, CREXi has facilitated over $700 billion worth of transactions. About 40% of these transactions were exclusive to CREXi, which attests to its popularity among buyers, sellers, and brokers.
CREXi is among the Los Angeles-based companies that have raised a significant amount of investments to actually have a noticeable impact on the real estate industry, enough to reshape it. According to BuiltinLA estimates about 127 companies, which have raised over $2.4 billion in investments, are active in the Los Angeles market. These companies run the gamut from Knotel, which provides short-term commercial space, to Luxury Presence.
Furthermore, CREXi investors have good words about the company. According to Prudence Holdings general manager Gavin Myers, CREXi directly addresses the need of market players for “platforms that provide free and open access to information.” He further said that as CREXi continues building its services, features, and functionality, Prudence Holdings is thrilled to be its partner and will continue supporting its momentum.
CREXi was established in 2016 and has its headquarters in Venice, California.
Founder, Editor-In-Chief // A native Angeleno. John studied engineering at UCLA; founded Schmoozd, an offline social tech networking event in LA with 30,000 subs; ran a startup accelerator (StartEngine). Worked for several major brands like Toyota, DIRECTV, Hitachi, ICANN, and Raytheon. A mentor at Loyola Marymount University (LMU) Entrepreneur School, Dr. David Choi. And advises a dozen local LA startups building amazing tech in various industries; and invested in some. // Let's Connect: john@lastartups.com
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