Andreessen Horowitz Leads $250M Fund-Raise For Proptech Unicorn EliseAI
Proptech firm EliseAI raised $250M in its latest funding round as Silicon Valley stalwarts bet on its potential to soup up operations for rental and healthcare properties.
The Series E funding round was led by Andreessen Horowitz, also known as a16z, with support from Bessemer Venture Partners, Sapphire Ventures and Navitas Capital. EliseAI is now valued at $2.2B, more than double its valuation from a year ago, Reuters reports.
The New York-based company's housing platform includes offerings like artificial intelligence-guided tours, lease audits, a maintenance app and a tool for fee transparency. It is also being used in millions of U.S. apartments to collect rents and message tenants who haven't paid.
The new funding will enable EliseAI to expand its team and upgrade its AI-driven offerings. The company is hiring across all its departments and growing its office hubs in New York, San Francisco, Boston and Chicago.
“The company already powers 10% of the U.S. apartment market today, with a massive opportunity still ahead of them domestically and abroad as they begin to enter international markets,” Alex Immerman, partner at a16z Growth, said in a press release.
EliseAI’s latest raise was more than triple its previous round. Its Series D, which closed last August, totaled $75M and was led by Sapphire Ventures, propelling EliseAI to unicorn company status at a valuation of $1B.
Since last year's raise, the company has more than doubled its workforce from 150 full-time employees to more than 300. It has also introduced additional AI-powered products across its healthcare and housing verticals.
The company, which was founded in 2017, supports more than 600 multifamily owners and operators, including landlords like Brookfield, AvalonBay Communities, Bozzuto, Equity Residential and Invitation Homes.
“We have a large business now,” EliseAI CEO Minna Song told Bisnow last year. “It's real revenue.”
EliseAI is one of the leaders in agentic AI, which some in CRE are billing as the future of AI for multifamily.
The technology functions differently from popular and commonly used chatbots. Agentic AI is not only able to respond to resident inquiries but also performs tasks, acting like an agent, as the name implies. It will evaluate applications or follow up with potential leads when vacancy in a building begins to creep up.
Spending on agentic AI could reach $155B in the next five years, Bank of America estimates.
