Proptech Startup OnSiteIQ Closes $14M Series B Round

Construction site visualization and progress tracking company broadening its scope

BY PHILIP RUSSO OCTOBER 24, 2023 9:00 AM

Amid a spate of new proptech funding, OnsiteIQ, a construction intelligence platform for commercial real estate investors, developers and owners, announced Tuesday that it has closed a $14-million Series B round.

Existing investor Vertical Venture Partners, joined by a number of its limited partners, led the round, with additional participation from proptech venture capital firm RET Ventures and Interplay VC.SEE ALSO: Florida Looks to Ease Child Labor Laws With Industry Support

The funding will be used to expand product offerings and speed analytics delivery. OnSiteIQ attracted investor interest after the contech startup doubled its revenue in 2022, said founder and CEO Ardalan Khosrowpour.

“We’ve made tremendous progress since we raised our last round, led by Vertical Venture Partners,” Khosrowpour said. “We’ve grown three times since then, which was almost a year and a half ago. They wanted to lead a series B as well, because we’ve built an incredible roster of clients, like Toll Brothers and Greystar.

“As we were fundraising, RET Ventures — which has I think nine out of top 20 multifamily developers as part of their LPs — overlapped with our customer base. It was such a strong compelling case for them to come and invest in this round. It gives us this unparalleled access to their LP base.”

While OnSiteIQ is looking to RET’s LPs to help it expand further into the multifamily space, it is also planning more moves into hospitality, senior housing, single-family and other construction verticals, he said. Such growth is a challenge and a necessity as the multifamily sector continues to face financing issues, he added.

“It’s undeniable that because interest rates have gone up, the appetite to take on debt and build projects has come down,” Khosrowpour said. “The only difference in my opinion is that we’re going upstream, because enterprise accounts are still building. Maybe they used to build 20 multifamily at a time and now they’re doing 10, but that will level when rates stabilize. And large developers are still building and they have to build.”

Founded in 2017, Manhattan-based OnSiteIQ had to broaden its technology platform after their initial product proved successful and clients wanted more, said Khosrowpour.

“When we started, we were a visual documentation platform,” he said. “We built a network of people in 69 markets and today we are actively capturing 700 projects across the country. We started with just a walk-the-site map to floor plan like Google Street View. As of almost six months ago, we launched two products that analyze and track progress.”

OnSiteIQ has to date monitored 700 construction projects nationwide worth $17 billion, Khosrowpour said. The company tracks progress across 22 major metrics, he added.  

“And we can see the trends, so we can send active notifications to the ownership when a construction trade does not make progress,” Khosrowpour said. “That’s super valuable and a paradigm shift for developers and equity partners, going from reactive to proactive asset management or project management at scale.”

OnSiteIQ’s Series B investors echoed Khosrowpour’s enthusiasm.

“In the large and untapped construction sector, the need for clear, objective insights is more crucial than ever,” David C. Schwab, managing director at Vertical Venture Partners, said in a statement. “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.”

“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,” Christopher Yip, partner at RET Ventures, said in a statement. “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.”