Prophia Raises $10.2M to Bring Smart Lease Abstraction Platform and Insights to Commercial Real Estate Industry

Prophia, the leading provider of AI technology for lease abstraction and commercial real estate (CRE) data management, today announced $10.2 million in Series A funding, led by Cercano Management, with participation from SignalFire and several customers who participated in the financing round. The company has also reported 250% ARR growth in 2022, as it supports customers growing data sets across 160 million square feet of assets under management. Dedicated to eliminating manually intensive lease abstractions and data accessibility processes, Prophia allows industry leaders to enhance their investment strategy with comprehensive, verifiable, and structured commercial portfolio data.

With an upward trend toward institutional buyers comes the need for more advanced technology that helps simplify the process. Based on this increased demand over the last year, Prophia has doubled its customer base, maintained 100% customer retention, and expanded its suite of patented technologies and capabilities. Across over 1,800 locations, the company has exceeded one million pages scanned with its AI-powered technology, extracting text and characters.

“As a longtime customer of Prophia, the technology is a clear leader in CRE data management, providing insights and capabilities that help us make strategic, timely, and data-informed decisions,” said Rajiv Patel, Co-Founder and President at Spear Street Capital. “Our team can now extract and interpret data with clarity—a benefit that other tools in our industry have yet to solve.”

Current lease abstraction technology is outdated and unwieldy. Prophia fills a large but historically silent need for customers looking for an efficient way to access data with a familiar process that cuts out overwhelming specifics. With the rising trend toward institutionalization in the CRE industry, the last decade has seen a rise in private investment ownership, especially among the asset class. This—mixed with a vulnerable economy putting pressure on CRE as an asset class—gives more weight to the importance of clear and distilled lease agreements.

With Prophia, users can:

• Interpret with accuracy. Building owners and investors gain confidence employing AI-synthesized portfolio data direct from lease agreements, providing error-free business insights while mitigating risk and exposure

• Extract data all in one place. Through Prophia, over 180 AI-powered distinct label tags - such as critical dates, rents, rights, and options - provide unparalleled access to validated portfolio data in real-time

• Save time and money. Users can navigate, sort, and segment all lease data with customized reporting, significantly reducing the risk of costly litigation from contractual inaccuracies and ensuring ongoing compliance and optimized performance

“Commercial real estate is one of the world’s largest asset classes, but investors and operators are unfortunately stuck with untrusted and incomplete data with antiquated tools,” said Cameron Steele, CEO of Prophia. “By focusing on providing our customers with trusted, comprehensive, and structured building data, Prophia is addressing a severe and persistent pain point in the industry.”

“With the institutional growth in commercial real estate in recent years, investors have desperately needed a true and consistent way of looking at their assets with the insights to make sound portfolio decisions in a rapidly changing market,” said Stuart Nagae, Partner at Cercano Management. “Prophia’s AI-powered abstraction has solved that longtime industry blindspot – and the more than 600% growth in square footage since 2020 is a fantastic indicator of the industry’s adoption of this type of technology.”

For more details on Prophia, and to learn more about its data technology, visit prophia.com.

About Prophia:

Prophia is the leading provider of AI technology for lease abstraction and CRE data management, bringing massive amounts of lease and tenant information together to empower CRE landlords with real-time data and portfolio insights. By tethering data directly from its source documents and making it available in easily digestible formats, Prophia gives building owners and investors a competitive advantage with a unique opportunity to mitigate risk, reveal business opportunities and elevate decision-making at the asset and portfolio level. Trusted to be the true data source for the nation’s top CRE investors, Prophia integrates seamlessly into corporate ecosystems with direct integrations with Yardi and MRI.

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