RealSage, creator of a decision-making engine for real estate asset managers, said today it’s ready to transform the real estate industry after closing on a $4 million seed funding round.

Today’s investment was led by York IE, a venture capital firm that specializes in software-as-a-service startups. The round also saw contributions from Karman Ventures, Stellifi VC, Golden Section and Second Century Ventures, plus a number of real estate family offices and angel investors.

The startup, officially known as SoulRooms Inc., says it wants to help the real estate industry shift from an intuition-based decision-making process to one that’s based on predictive, data-driven models. Its platform is aimed at asset managers, and it leverages artificial intelligence algorithms to help them make more profitable decisions and improve their operational efficiency.

RealSage says its platform integrates multiple highly sophisticated AI algorithms and machine learning techniques that work to analyze market trends, predict occupancy rates and optimize rental pricing strategies. By doing this, it can enhance the performance of real estate assets and maximize the revenue they generate for property owners and investors.

Using the SaaS-based platform, real estate asset managers can automate many of the routine tasks they’ve traditionally always done manually, and access deep analytical insights that can guide their strategic decisions. But it’s not only about enhancing profits, as the deep insights it provides can also help asset managers improve the satisfaction of their tenants. That’s because asset managers will have more time to focus on developing strategic initiatives and cultivating warmer relationships with their tenants.

RealSage Chief Executive Arunabh Dastidar said AI doesn’t just make decisions easier, but also improves the impact of those decisions. “We are shifting the industry from a gut-feeling-based decision process to a predictive, data-driven model that will fundamentally change how actions are made at all levels,” he promised.

The platform covers various aspects of real estate asset management, with deep analysis of the various market forces at play meaning it can provide more accurate property valuations and identify the most promising new investment opportunities. Other benefits include risk mitigation and enhanced portfolio diversification to hedge against market shifts.

Constellation Research Inc. analyst Holger Mueller said the real estate industry can benefit from AI because decisions around pricing are still made on managers’ gut feelings, due to a lack of transparency in the market, and the complexity of the industry. “RealSage is bringing more automation to the world’s largest real estate market, in the U.S.,” he said. “That’s good, because with the recent legal ruling on real estate agent commissions likely to have big implications, more accuracy and quality is needed. RealSage is therefore timing its market entry well. But it remains to be seen if it can address key performance indicators in the U.S. markets properly.”

Stellifi VC co-founder and Managing Partner Matt McDonnell said RealSage’s platform got his attention because it’s solving critical problems in an industry he knows very well. “In the current landscape, real estate operators are increasingly embracing technology at the same time as the startup world has seen a consolidation,” he explained. “The result is that RealSage has a unique opportunity to capture a significant share of a rapidly growing market and become the go-to solution for asset managers.”

Marshall Everson, vice president of investments and strategy at York IE, said the funding round validates the startup’s vision and its potential to become a market leader in AI-based real estate decision-making. “RealSage’s approach to transforming real estate through AI and data analytics is exactly what the industry needs to advance,” he said.

Images: RealSage