OnsiteIQ – a leading construction intelligence platform for commercial real estate investors, developers, and owners – recently announced the completion of a $14-million Series B financing round. The funding round was led by existing investor Vertical Venture Partners (joined by several its Limited Partners), with additional participation from leading real estate technology VC RET Ventures and Interplay VC.
Launched in 2017 by Ardalan Khosrowpour, OnsiteIQ was developed to help real estate investors from across the industry improve job site transparency and manage risk throughout their portfolio of development projects. And OnsiteIQ’s network of ‘capture specialists’ regularly walks its clients’ projects to capture 100% of the job site with 360-degree videos, which are then automatically mapped to each project’s floor plans.
By doing this, OnsiteIQ creates an objective, consistent, and comprehensive record of all of the firm’s active projects – which users can instantly access and monitor from any device. This platform analyzes this visual data and utilizes artificial intelligence to track progress across 18 major milestones, provide status updates, identify inactivity patterns to predict potential delays and create trend reports across an entire portfolio.
By working as a single source of truth for all project stakeholders, OnsiteIQ promotes transparency and provides a centralized platform for institutional investors to document projects, monitor progress, and verify payments. And in a construction landscape in which more than 70% of projects fall behind schedule, this platform is especially valuable for developers, equity partners, and lenders with geographically dispersed investments – who have previously struggled to gain visibility and access a holistic dashboard of accurate status reports for their entire portfolio.
OnsiteIQ has seen major traction since its founding and is monitoring construction projects across a wide variety of property types in more than 65 markets throughout the United States and Canada. And to date, the company has captured over three billion square feet of 360-degree project footage, monitoring over 1,600 projects valued at a cumulative $17 billion.
Along with improving key risk indicators and analytics data, this latest funding will support the refinement of the solution’s payment verification platform, and the deployment of an elevated portfolio dashboard that allows for the data-backed cross-comparison of various projects within a portfolio.
KEY QUOTES:
“OnsiteIQ was founded to empower commercial real estate investors, developers, and owners with real-time insights into projects’ status, helping to increase transparency and enhance risk management across a portfolio. We do so not only by delivering accurate, high-quality data — in what has historically been a highly fragmented industry — but also by tapping into artificial intelligence to flag potential risks before delays occur. The typical development loses roughly $2 million per month of delay; for a large fund with numerous parallel projects, construction delays cost tens of millions which has a direct impact on funds’ Internal Rate of Return (IRR). With this latest capital injection, we will be focused on improving our product offerings, including expanding our analytics suite to better identify trends and patterns of inactivity that lead to project delays and budget overruns.”
— Ardalan Khosrowpour, founder and CEO of OnsiteIQ
“While rising construction costs and interest rates have created serious challenges for real estate developers, OnsiteIQ provides stakeholders with much-needed visibility into active projects’ progress, making it easier to keep portfolios on track. A number of the multifamily owners and investors who comprise RET’s strategic investor base have been utilizing OnsiteIQ to monitor their active developments for several years, and have found value in the platform. We are confident that, as OnsiteIQ continues to refine its technology and analytics, it will increasingly solidify its position as an indispensable tool for the industry.”
— Christopher Yip, Partner at RET Ventures
“In the large and untapped construction sector, the need for clear, objective insights is more crucial than ever. This is where OnsiteIQ steps in, leading the charge in blending technology with construction know-how, and paving the way for a more open approach to building and developing real estate. We are excited to follow our original Series A investment and lead this Series B to support OnsiteIQ’s commitment to making the construction world more transparent, offering real, practical insights that can be used by all real estate investors. As they expand their services and fine-tune their analytical tools, we are eager to see the big, positive changes OnsiteIQ will bring to the real estate investment scene.”
— David C. Schwab, Managing Director at Vertical Venture Partners
