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CompStak announced April 10 that it had raised nearly $5 million in Series A funding led by venture capital firm Canaan Partners, which has Silicon Valley offices on the famed Sand Hill Road in Menlo Park.
“CompStak’s expansion in the CRE market and recent investment is indicative of a trend towards B2B businesses that utilize efficient scalable models previously seen only in the consumer space,” Hrach Simonian, principal of Canaan Partners and now a CompStak board member, said in a prepared statement. “CompStak’s model harnesses the collective knowledge of CRE professionals and enables more efficient deal making and fairer transactions.”
As far as fact-checking all of that data, the company is relying on man and machines. All comps are reviewed by a living analyst, but CompStak also is relying on its computers to automatically flag information that is inconsistent with what else is known about a building, such as a rent level that is exceptionally high or low based on a mathematical mean.
“We tend to receive each comp more than five times, and only the first person who gives us information gets points,” Mandel said. “That is how we incentivize people to move first.” The repetition helps to weed out errors, too.
The technology gives power to brokers that right now is largely reserved for the brokerage houses, the largest of which maintain their own databases of lease information but only share it internally, Osgood said. If a broker leaves a position, he or she no longer has access to that database—including information on his or her own transactions. CompStak allows portability.
“I don’t know if it will change the face of the real estate industry,” Osgood said, “but it is changing things. CompStak helps us serve our clients better.”
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