San Francisco-based startup Dealpath, a deal management and collaboration software platform for commercial real estate investment and development teams, has closed an $8 million Series A financing round. Participating investors include Formation8, LeFrak, Milstein, Bechtel, Goldcrest Capital and Deep Fork Capital.
According to Michael Sroka, CEO of Dealpath, the commercial real estate industry continues to depend on traditional spreadsheets, paper checklists, and unmanageable information and document control challenges to inform deal teams about critical acquisition, development and financing decisions. “Commercial real estate is a massive industry and a critical part of our economy that has been vastly underserved from a technology standpoint,” said Sroka. “With so much at stake, it’s important to have processes and tools designed for the challenges of this work. Multi-billion dollar institutional portfolios and deals that can be measured in the tens and hundreds of millions of dollars should not be conducted in Word document checklists and Excel spreadsheets that are emailed back and forth.”
Sroka, whose background includes gaming and sports entertainment startups, began his career working for a large real estate private equity firm. He founded Dealpath in 2014 to provide purpose-built functionality for the demands of complex CRE deal management. From creating centralized deal data with repeatable processes and appropriate visibility and accountability, to efficiently distributing and tracking work with deal team members, the system is designed with a consumer-grade software approach.
“The Dealpath platform is already being used by highly respected and successful commercial real estate enterprises with great success,” said Joe Lonsdale, from 8VC, who led the Series A financing as a follow-on from Formation 8.
Millennium Partners and Cypress Equities, as well as specialty CRE investment firms like U.S. Restaurant Properties are some of the more than 100 firms with teams currently using the platform.
“The increasingly competitive and complex CRE industry requires world class execution. Dealpath gives me the visibility and controls I need to effectively drive a pipeline of opportunities,” said Bill Frazer, Managing Director of RCREF. “From sourcing and underwriting through diligence, closing and beyond, Dealpath puts the information I need at my fingertips. It’s a very powerful platform delivered through an interface that teams want to use.”