Dallas is known for its hot real estate market. Now a local startup is looking to streamline things by making construction cheaper and more efficient.
Following up on a seed-stage investment in early 2020, building configuration software company TestFit has landed a $20 million Series A funding round led by New York-based firm Parkway Venture Capital. It will use the funding to take on what it calls an abundance of “opportunity in the market.”
‘A unicorn in the making’
“With TestFit, we see a disruptor driving a paradigm shift in the real estate industry,” said Gregg Hill, co-founder and managing partner at Parkway, in a statement. “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.”
“They’re a unicorn in the making,” Hill told the Dallas Morning News, adding that TestFit is “definitely becoming a household name” in the architecture, engineering, and construction space.
Enabling companies to ‘de-risk’ decisions
Citing CBRE data, TestFit says it’s eyeing strong demand for multifamily and warehouse property across the U.S.. Focusing on architectural, real estate development, and general contracting clients—of which it has more than 200—TestFit’s technology uses algorithms to produce design prototypes, architectural analysis, and simulated feasibility studies.
The company was formed in 2016 by co-founders Clifton Harness, CEO, and Ryan Griege, who also serves as TestFit’s chief technology officer. According to the Dallas Morning News, the two teamed up while attending the University of Texas, after Harness realized the lack of technology and innovation in the space while serving as an assistant design manager at Dallas developer StreetLights Residential.
“Pioneers integrated drawings and the model years ago, but the industry has stagnated until recently,” Harness said in a statement.
Harness says TestFit is the first company to connect pro forma, construction cost, and asset design through its building configurator software—enabling companies to “de-risk decisions” and log critical time savings when they develop new commodity real estate.
TestFit plans to grow headcount, build new HQ
TestFit previously raised a $2 million seed round from Parkway in January 2020. With the newest round of funding, the company has raised a total of $22 million. As part of the Series A funding, Hill will join TestFit’s board.
TestFit plans to use the new funding to invest in research and development, as well as expanding its sales reach. The 17-person company also aims to grow its team to around 50 people and move them into a new physical office it’s planning to build.
“This new funding will enable us to quadruple down on our product and engineering teams—there is so much opportunity in the market, and we want to be there to create even more value for our customers.’ Harness said. “There is so much opportunity in the market, and we want to be there to create even more value for our customers.”
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