Proptech startup HappyCo raises $72 million in Series B

Adelaide real estate software company HappyCo has raised US$52 million (A$72m) in a Series B and it looks to ramp up its US expansion.

The raise was led by US venture capital firm Camber Creek. The cash will be used to develop new services and hire more Australian staff as co-founders Jindou Lee and Andrew Mackenzie-Ross look towards to emerging build-to-rent market locally alongside global acquisition ambitions. 

Founded in 2011, HappyCo helps property and asset managers, lenders and investors make better management decisions. The software suite includes condition assessment and workflow tools with in-unit data on over 3.5 million US rental homes. HappyCo’s data was relied upon to transact approximately 26% of all US sale transactions of multifamily units in 2021.

The business has offices in San Francisco, California as well as Adelaide.

Co-founder Jindou Lee said HappyCo provides vital underwriting information to lenders, investors and asset managers.

“This funding round marks an inflection point in the growth of our business, not only in our capacity to develop new products and innovative solutions, but also to lay down a stronger team presence in Australia as the build-to-rent market here gains traction,” he said. 

“As well as hiring a load of technical talent in Australia, the funding will allow us to pursue acquisitions in the major markets where we’ve built a best-in-class network of institutional real estate investors, property managers and lenders.”

Camber Creek Managing Partner Casey Berman says HappyCo is the market-leader, with scale, vision and a track-record of success.

“This investment gives HappyCo the resources to move the infrastructure status quo away from static snapshots of buildings towards dynamic insights that inform more precise valuations, inspire plans for how to reposition assets, drive down insurance costs and identify modifications that provide the greatest return on investment,” he said.

In 2012, HappyCo was one of the first Australian startups to come through the new Startmate accelerator program, and one of the first companies to receive investment from Startmate’s original founder Niki Scevak.