Blackstone Innovation, Others Invest $10M in Proptech Firm cove

The proptech firm cove today announced that it had received a $10 million investment. Leading the round was Blackstone Innovations Investments and other investors like Kastle Systems. One previous investor is Second Century Ventures.

“The way people engage with the built environment is changing and we have developed our software to create a seamless experience for the user — whether tenant or operator,” CEO Adam Segal, referring to office spaces and corporate tenants, said in prepared remarks. “Partnering with Blackstone as the preeminent real estate investor will help us grow our platform, reach greater scale and continue to innovate the digital layer of what’s next in the industry. Having a partner of this stature believe in our mission challenges us to continue innovating.”

The company says that it integrates building operating system capabilities with tenant experience (they call it TeX, not to be confused with the computerized typesetting system, primarily for mathematical symbols, initially developed in the late 1970s).

Tenants can, using a “white-labeled platform” (a software industry term meaning that applications can feature a property owner or operator’s branding rather than that of the software developer), “register guests, book amenities, lease flex office space and submit work orders” while operators can “manage buildings – including vendor relations and maintenance.” The software can support flexible offices.

A cloud-based delivery provides operational functions and reporting.

The company says the software is currently through a recent partnership with EQ Office, a Blackstone Real Estate portfolio company, at the 110-story tall downtown Chicago workspace called Willis Tower.

“With the cove platform, EQ Office tenants and property teams will have an unmatched and fully-integrated technology solution that transforms the workplace,” the release quotes EQ Office vice president of technology Mikki Ward. EQ Office, founded in 1976 as Equity Office Properties, “focuses on the experience — how space feels, activates, and performs,” to help tenants attract talent.

EQ Office has 1,500 clients from startups to Fortune 100 companies in its 20 million square feet of office space.

In 2020, private equity fund manager and investment advisor Rubenstein Partners partnered with cove, which at that point was considered primarily a workspace design firm, to renovate two of Rubenstein’s Maryland office properties, including renovating workspaces, creating collaborative areas, and enhance common areas. In addition, cove was going to pick food and beverage options for tenants.