Inspectify raised $5.76 million in new funding, helping the Seattle-based home inspection startup roll out new services and develop its platform.
Founded in 2019, the company provides inspection software and a booking platform for home, property, and rental inspections. It aggregates data from each inspection and aims to replace static PDF reports. The startup serves real estate investors, property managers, lenders, insurance carriers, and brokerages.
The fresh cash comes amid a real estate market slowdown. Higher interest rates and other macroeconomic factors have reduced transaction volume. Would-be buyers are cautious due to the increased cost of borrowing, while sellers are clinging onto lower mortgage rates.
Inspectify cited the slowdown when it laid off 16 employees in November.
Inspectify’s services have experienced a 80% year-over-year decrease in demand from institutional real estate investors, CEO Josh Jensen told GeekWire.
But the startup is still growing its market share, he said, expanding into other verticals such as property management, insurance, lending and data services.
“Not only has this helped hedge our business, but also has exponentially grown our total addressable market as a business,” Jensen said.
Inspectify now has 44 employees, up from 32 in 2021 when the startup raised $8 million in Series A funding.
The funding round was led by Fundrise, a platform that lets retail investors participate in private asset classes like real estate, private equity and venture capital. The Washington, D.C.-based asset manager has more than 2 million users and over $3 billion in assets under management. As part of the investment, Inspectify will be able to market its inspection services to Fundrise’s portfolio of more than 20,000 residential units and customers.
Jensen is a former Flyhomes exec and a long-time residential real estate home flipper. He is joined by CTO Denis Bellavance, who previously co-founded meal delivery startup Peach and spent time at Zillow, Loftium, and Amazon. Taylor Zwisler, who previously launched a credit card processing company, is a co-founder but left the startup in December 2021. The entrepreneurs participated in Y Combinator in 2019.
Inspectify’s existing backers include Nine Four Ventures, Foundation Capital, the HSB Fund of Munich Re Ventures, Socially Financed, and other angel investors.
