Lease and location management proptech company Leasecake recently locked down $12 million in an oversubscribed Series-A funding round.
The lead investor was PeakSpan Capital, a venture capital firm focused on growth-state B-to-B software companies with self-reported $1.5 billion assets under management. According to private company data site Crunchbase, PeakSpan has made 36 investments—29 as lead investor—in a variety of areas, such as fintech, logistics, and proptech. The site also notes that Leasecake has seen a total of $17 million in funding.
Some other investors in the round include Las Olas Venture Capital, which participated in a prior seed round, and Branded Strategic Hospitality. There have been a total of nine investors over time.
The new funding will go into a number of areas. One is to double Leasecake’s headcount over the next 18 months. Others are the creation of new platform offerings and further expansion into Europe and Latin America, which help explain the need for additional personnel.
According to Leasecake, its cloud-hosted software “allows tenants, brokers and landlords to manage location-related services, from lease management and lease accounting to insurance agreements and franchise operations,” according to a press release. Also targeted types of prospects are private-equity firms, and franchisors.
Because of the cloud nature, all users would lot into their accounts rather than installing applications on their own premises.
The company claims to have increased revenue by a multiple of five between 2020 and 2021, “with customers ranging from single-site operators to businesses managing more than 1,000 locations.” Leasecake points to a pandemic-fueled need for “enterprise location management technology” across retail, office, and industrial sectors as the driving force of its growth. It isn’t clear whether this comes from a specific issue solely from the pandemic or whether the shakeup in business as usual has caused companies to rethink operations and recognize the pre-existing need for improvements.
“The technology lets them seamlessly collaborate and share data with real estate brokers, CPA firms, lenders, lawyers and insurance brokers,” the release quoted chief product officer David Schrader. “Those parties support all facets of a lease or sales transaction. They use Leasecake to quickly move through due diligence, assembling accurate financial statements to close loans and do deals faster.”
However, as always true with reports of growth in any form of percentage, without hard numbers that can show the final or initial state, there is no way to know how significant the claims are.