Cadre Raises $18.3 Million to Fund Commercial Real Estate Software
Startup Cadre recently announced it has raised $18.3 million, according to TechCrunch. The funds were raised from Thrive Capital and General Catalyst. Other investors in this round of funding included Jon Winkelried, formerly of Goldman Sachs, Michael Fascitelli, formerly of Vornado Realty, and Andrew L. Farkas. Cadre has also made arrangements for a $250 million backstop, provided by an unidentified family office.
Strong Industry Background Provides Foundation for New Startup
Employing a staff of ten people, Cadre has taken steps to employ the best and most up-to-date technology talent possible, including Andrew Borovsky, who served as the former product director at Square.
Founded by Jared and Joshua Kushner, Cadre is a blend of the two brothers' backgrounds as a technology venture capitalist and a real estate developer. The product of their efforts, Cadre, is designed to make it easier for specific clients, including endowments, to utilize technology to make real estate investments.
Co-founder Ryan Williams, who has a background with Goldman Sachs, is responsible for overseeing the day-to-day operations for Cadre. Leading product development for Cadre is Andrew Borovsky. Currently, the Kushner brothers act as strategic advisors. Jared Kushner currently serves as the CEO of Kushner Companies, while Joshua Kushner has been involved in a number of investments that have included Instagram, Warby Parker, and real estate startups such as 42Floors, Hightower, Compass, and Honest Buildings. Jared is also the co-founder of Oscar, a health insurance startup.
How Cadre Works
According to Cadre's chief executive, Ryan Williams, the startup works by prescreening potential investments and then loading those investments to its platform. Those properties are then made available across multiple markets. As a result, it becomes possible to gain greater access to institutional deal flow, thus allowing investors to choose specific deals instead of placing their money into real estate investment trusts or funds that do not provide the ability to cherry-pick desired transactions. After deals are closed, Cadre will also provide additional services.
In recent months, new real estate startups have practically peppered the headlines, as an increasing number of real estate industry insiders work to combine technology with proven real estate practices. Startups have now emerged in fields ranging from market intelligence to leasing, from visualization to crowdfunding. As investors become increasingly willing to pour money into such startups, the real estate scene has become ripe for innovation. In fact, since 2012, more than $800 million in funding has been funneled into the industry from investors.
While in the past, the real estate industry often tended to rely on personal connections, startups such as Cadre have made it increasingly easier for both buyers and sellers to tap into increasing market opportunities. Those opportunities are now driving the ability to reduce risk while increasing prospective profits within the real estate investment sector.
To date, Cadre has reported lining up dozens of endowments and family offices as clients. In just the last month alone, the startup has closed approximately $50 million in investments.