ActivePipe, a real estate marketing technology start-up, has raised an additional $8 million in capital to support the property sector during the short-term impact of the coronavirus. Founded by Ashley Farrugia and Gavan Stewart five years ago, the company provides automated email marketing equipped with analytics to real estate agents, offering insights into which individuals in their network are most likely to buy or sell a property. AS1 Growth Partners led the latest capital raise, with existing investors including IAG’s Firemark Ventures, NAB Ventures, Second Century Ventures, PieLAB Ventures and Asia Principal Capital also participating. The company’s previous $7 million round in October was converted by investors into equity, collectively closing its Series B raise at $15 million. Farrugia has set a growth target of 125% year-on-year for ActivePipe, which he hopes will help agents book private inspections and reduce the number of people attending open homes.
The start-up’s annual growth rate has been boosted by strong performance in the US, accounting for around 30% of revenue. The founder, Mr. Farrugia, anticipates that the company will exceed an annual revenue run rate of $10 million in the coming quarters. In the US, the founder estimates that approximately 120 million real estate leads are generated annually, with only 50% receiving follow-up interaction. The company’s customers include Ray White, LJ Hooker, and Barry Plant locally, while Sotheby’s International Realty has signed up in the US. Previously, the product was sold primarily to agencies, but it has recently begun selling directly to agents with impressive adoption rates. The US revenue is expected to surpass that of Australia and New Zealand by the first quarter of next year, or possibly by the end of this year, with growth of approximately 400%.
ActivePipe, a technology company, has developed a tool that can determine a potential buyer or seller’s behavior with only a few interactions. The tool can identify whether someone is an upsizer, a downsizer, a seller, or a likely buyer for a specific property. Despite the COVID-19 pandemic causing real estate agents to reduce discretionary spending, ActivePipe has not been adversely affected. ActivePipe’s role in helping agencies become more digital is seen as crucial by its CEO, Mr. Farrugia. AS1 Growth Fund’s mandate was to invest in technology companies that are poised to scale internationally and quickly, with a proven product, a sizable addressable market, and an exceptional management team, according to AS1 partner Neil Corkin.
