NEW YORK–(BUSINESS WIRE)–Rubik, a New York-based startup that provides a data-driven acquisition platform for single-family institutional investors, announced today that it has closed its $3.55 million funding round. dollars led by Ulu Ventures with participation from investors including South Central Ventures, AAF Management, ERA’s Remarkable Ventures Fund, Green Egg Ventures and Greg Waldorf, former board member of Trulia and Zillow.
Founded by Amar Sehic, Krenar Roka and Tommaso Montagni, Rubik was created as a modern technology platform for institutional single family rental (SFR) investors. Before Rubik, the three first-generation immigrant founders saw first-hand the massive appetite of institutional investors for this nascent asset class through their work creating market analysis and sourcing tools for various funds. in the space. They also saw the bottlenecks inherent in investors trying to allocate institutional capital to SFR.
When it comes to scaling their portfolios, today’s institutional investors rely on fragmented networks of local brokers and wholesalers for deal flow. The status quo leads to a lack of transparency and high friction for transactions. Worse still, the majority of transactions today take place in the market, through agent listings, which creates a competitive environment with other regular buyers and investors.
By leveraging data science to discover and aggregate proprietary inventory and enabling a fully digitized acquisition process, Rubik provides a plug and play acquisition platform for institutional buyers. By harvesting and analyzing data from entire markets, Rubik’s technology is able to identify homes that meet each buyer’s specific buying criteria and are not currently on the market. The startup’s model is to bring these off-market homes to their market, without taking ownership, and allow institutional investors to then buy the assets in a streamlined and data-transparent way.
“We are thrilled to partner with the Rubik team as the company brings a modern technology solution to an industry that has until now relied primarily on traditional field startups for supply and inventory growth. “, said Clint Korver, co-founder. and Managing Director at Ulu Ventures. “Their platform can help reduce friction in transactions, better match supply and demand, as well as provide liquidity to owners looking to exit.”
In a rapidly changing housing market plagued by supply constraints, the company’s ability to consistently find and deliver exclusive investment opportunities has resulted in strong traction. Since the marketplace launched in 2021, Rubik has traded more than $12 million worth of single-family homes and counts 20 of the nation’s largest SFR buyers among its clients.
The startup plans to use the funds to increase its trading volume in current markets by further developing its core data and analytics platform and expanding engineering, sales and marketing teams.
With rising rates, demand from traditional home buyers has begun to cool and price growth is expected to slow or even reverse in some markets. This creates new opportunities for big buyers already keen to acquire more homes. “We see a once-in-20-year opportunity ahead of us here. The last time we were in this part of the cycle, Invitation Homes was created and brought this asset class to life,” says co-founder Tommaso Montagni. “With the capital and partners we have brought on board, we are well positioned to take advantage of the upcoming changes in the real estate market and build on our first market lead in the space to become the platform for must-have investment for institutional single-family investors.”
Rubik allows investors to create institutional-grade single-family portfolios with just a few clicks. The company uses data science and machine learning to identify and acquire exclusive investment opportunities for REITs, hedge funds and family offices looking to build single family rental (SFR) portfolios of hundreds of homes. Rubik provides dozens of institutional buyers with a seamless, scalable, out-of-the-box acquisition platform while providing liquidity to local rental housing investors.