TestFit lands $20M to expand its real estate feasibility analytics software

Paul Gillin from Silicon Angle writes:

TestFit Inc. has become the latest entrant in the booming market for real estate and construction technology to raise significant funding.

The Dallas-based company today announced a $20 million Series A financing round to develop its real estate feasibility software. That brings total funding for the six-year-old venture to $22 million.

TestFit’s building configurator helps real estate developers, architects and others involved in real estate planning to generate plans quickly for commodity structures such as multifamily, commercial and industrial buildings. That allows feasibility studies to be conducted more quickly.

Co-founder and Chief Executive Clifton Harness said he got the idea for the application while working in real estate development. “I hated drawing parking spaces manually as an architect and I figured the industry spent millions on that one task each year,” he said. Observing that architecture, engineering construction and real estate teams are typically not very integrated, he said, “our goal is to make the process more collaborative.”

Could TestFit become a Dallas ‘unicorn’? Investors are betting on it.

The Dallas Morning News

Maggie Eastland from Dallas Morning News writes:

 

On the prospect of becoming a unicorn, Harness said TestFit might be able to grow to a $1 billion valuation, but he’s more concerned with creating technology that brings valuable information to developers and architects.

“It’s in the realm of possibilities,” he said. “But I’m more pressed upon the weight of needing to execute for the housing and architecture markets on meaningful innovation.”

Harness started out with big dreams to become an architect, but in his internships and job experiences, including at Streetlight Residential in Dallas, he realized the industry was begging for innovation.

“The whole tech stack that we were using was a fax machine, literally, trace paper, pencils and Excel. Email was kind of the most late-breaking, amazing technology,” he said. “We were making these investment decisions for $40 million to $100 million assets on the backs of envelopes, and that was a big risk.”

Harness took that risk and flipped it into an opportunity. He asked Ryan Griege, his college roommate from the University of Texas, to help create software for developers and architects that could solve feasibility problems without Excel. Today TestFit co-founder Griege is the startup’s chief technology officer.

The duo wants to put problem-solving ahead of cash.

“We’re not here because we thought we’d make a lot of money,” Harness said. “We’re here because we thought we could solve some meaningful problems and do something useful with our lives.”

One of the problems Harness thinks he can help tackle is the current housing crunch.

TestFit’s US$20mn in funding to improve customer outcomes

Photo of Clifton and Ryan

In a funding round led by Parkway Venture CapitalTestFit has brought its total financing to US$22mn with the latest US$20mn Series A round.

“With TestFit, we see a disruptor driving a paradigm shift in the real estate industry,” says Gregg Hill, co-founder and managing partner at Parkway VC, and TestFit’s newest board member. 

“Their approach enables teams to kill bad real estate deals quickly. The AI-powered building configurator provides a unique interaction experience, enabling instantaneous control of feasibility studies and pro forma plans. Companies using TestFit’s software will have a serious competitive edge over companies that don’t.”