Real estate startups have raised more than $19.6 billion worldwide in 2021, according to PitchBook data, setting an annual record as the sector has continued to bounce back from last year’s pandemic-induced lull. Lessen’s Series B, which values the company at more than $1 billion, also includes participation from Khosla Ventures, General Catalyst and Navitas Capital. The Scottsdale, Ariz.-based company provides a property marketplace platform that helps owners connect with building contractors for projects such as renovations and maintenance.
“The real estate industry is seeing a difficult hiring environment, complicated materials procurement system and increased appetite for portfolio scaling … all at the same time,” said Jay McKee, founder and CEO of Lessen. “All of these can be improved with the right property technology.”
A majority of service providers traditionally use only email, Excel, and pencil and paper to communicate and document tasks, McKee said. Hence, supply chain optimization and workflow enhancements can help property owners scale current operations and cater to new markets.
The funding comes less than five months after Fifth Wall, a prolific real estate tech investor, led Lessen’s $35 million Series A. The Los Angeles-based firm has backed 44 startups in the sector since 2016, making it the most active real estate tech investor globally as of March 1, PitchBook data shows. Other notable startups in the firm’s portfolio include real estate brokerage and mortgage lender Flyhomes and Sao Paulo-based Loft, the developer of an online property search platform.
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