RiverSouth was named the smartest building in North America and features a range of technologies for tenants, business owners and property managers. Kode OS underpins building systems, a real estate platform developed by Detroit-based startup, Kode Labs. The platform ingests data from any number of systems and provides users with a unified experience that can do everything from control lighting to reducing carbon emissions.
Today, the 5-year-old company is announcing its first capital raise with an $8 million round led by I Squared Capital. Since its founding in 2017, Kode Labs has been self-funded by its founders, brothers Etrit and Edi Demaj. Both sell their last company, Rocket Fiber, to Everstream for an undisclosed amount. The company name Kode Labs pays homage to Kosovo and Detroit – KO to Kosovo and DE to Detroit. Co-founders Etrit and Edi Demaj hail from Kosovo and had to flee the war-torn country in 1999.
“We are excited to partner with leading PropTech investors who bring not only the financial backing but also the immense market expertise needed to thrive. This funding will allow us to continue investing in R&D while maintaining our competitive edge,” co-founder Edi Demaj said in a statement sent to TechCrunch.
In an interview, Edi Demaj told TechCrunch that Squared Capitol has “a lot of experience” in real estate. “They are committed to reducing carbon emissions and energy use globally with their fund,” said Demaj. “It was a big call for their fund. Their approach is better than the other 50 VCs we talked to. They are real partners and don’t just put money in. They want to help.”
Even before the raise, the company said it was profitable. Demaj told TechCrunch the capital will help improve the company’s engineering capabilities.
“We have over 100 different integrations we’ve done with different systems across a multitude of different verticals that are now part of our portfolio. We have billions of data points. We want to elevate this round to further increase our engineering capabilities and add more data scientists and engineering to advance our core thesis of taking everything in, visualizing it, and giving orders. , control and analyze it to drive an efficient, autonomous real estate portfolio. “
Kode OS is a cloud-first platform that is vendor agnostic and open. This is a novelty in the real estate space, where many operations use on-premises servers and platforms to control IoT devices, HVAC systems, and other building services. Usually, these systems are locked and cannot communicate with each other. By hosting the platform in the cloud, customers can access building integration services and quickly replicate configurations across different structures.
So far, the company says it hasn’t had any disruptions, and every customer it has signed up with is still working with the company. The founders believe this is a testament to its innovative and flexible technology and its dedication to customer service. Demaj points to the ability to scale rapidly to meet the needs of different clients and quantify return on investment.
“There are buildings like the RiverSouth in Austin,” Demaj said. “It was chosen as the smartest building in North America. We did that whole building. It is probably one of the most efficient buildings on Earth; it also has one of the best experiences and is generating the highest revenue per square foot of any building in Austin, the hottest market in America. Mainly because they have a really smart building from start to finish. It has a low carbon footprint and low energy use per square foot as it is optimized for finishing. “
Kode Labs calls Detroit home. In addition, the company operates a second office in Kosovo with 60 employees. Since its founding in 2017, the company has experienced impressive growth. Sales grew 200% year over year, and headcount followed with 100% growth during the same period. With an existing client list, Kode Labs serves 20,000 million square feet of real estate on three continents and works with companies and organizations of all sizes.