Real estate startup: Real estate software company Cedar on Tuesday announced raising $3 million in seed funding led by venture capital Caffeinated Capital, along with the participation from Tishman Speyer Ventures, Maria Davidson (CEO, Kojo), David Rubenstein via Shorewind Capital, Alumni Ventures, among others.
Cedar utilises generative algorithms and a mix of public and proprietary data to help developers with building designs, development yield of the area, regulatory framework and the documentation/permits required, and assessment of their projects to maximise their profits. Presently operational in Austin, Cedar plans to expand its operations across other major American cities.
Rahul Attraya, Co-founder, Cedar said, “The smaller, non-institutional “missing middle” scale projects are critical to creating a more economically and environmentally sustainable density in our cities. But getting innovative housing built in urban areas is not easy, and builders, developers, and the design community take big risks to make them happen – Cedar is supporting this effort by providing sophisticated planning and analysis technology that reduces risk and maximizes their potential”
The platform provides features such as ‘Catalog,’ which provides development options validated by the market and in compliance with local zoning requirements, and ‘Collaborative site planning’ that helps in sharing, reviewing and planning the project with all the stakeholders.
“Characterizing the economic value of any parcel of land through its current and future development opportunities will drive massive value to developers, brokers, states and municipalities, and other stakeholders. With it, Cedar could help usher in a new golden era of municipal development and help solve America’s housing shortage,” said Varun Gupta, Partner, Caffeinated Capital.
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According to the research agency Mordor Intelligence, the American real estate market stood at $2.53 trillion in 2023 and is expected to reach $2.8 trillion by 2028 at a compound annual growth rate of 2.04 per cent.