3D scanning startup Aetos Imaging just scored its first venture capital investment.
Typically, a hiring spree follows. But not in this market.
“My instinct is to optimize for survival,” said Aetos Imaging President Connor Offutt. “It's not like it was two years ago where money's just gushing out and people are getting funded left and right.”
Investors have pulled back from tech startups as the U.S. Federal Reserve is hiking interest rates to curb rapid inflation. Because of uncertain market conditions, investors are prioritizing profitability rather than growth, a massive shift from last year's record amount of capital that poured into local startups.
Multiple Atlanta startups, including OneTrust LLC, are now laying off employees to cut operating costs because of this change.
That's why Offutt is thinking conservatively with the $1 million he raised from venture capital firm Atlanta Seed Co. and other angel investors.
The Atlanta Tech Village-based startup has 10 full-time employees, four of whom are based in Atlanta,
Aetos Imaging was founded last year and has 25 customers, including The Kraft Heinz Co., CBRE Group Inc. and Cushman and Wakefield PLC.
Following the raise, Offutt says the startup should have up to $750,000 in annual recurring revenue by year-end.
About Aetos Imaging
Aetos Imaging creates 3D models that capture mechanical or facility management components of a building or space. It is mainly focused on distributing training content for an organization.
If a new employee needs an instructional guide as to how a facility or workspace works, that process can take place online while he or she interacts with the virtual model.
“The training content becomes rigged up to be specific to the environments that someone steps into every day, so you get a better one-to-one training fidelity in order to learn the ends and outs of how to do your job well.” said Offutt.
The software can reduce energy consumption in facilities by up to 4%, management and contractor onboarding time by 50%, travel expenses by 35% and project communication errors by 20%, said Offutt.
The 3D models could also be helpful in building repairs and inspections.
Industry opportunity
For Joey Kline, vice president at real estate company Jones Lang LaSalle Inc., Aetos Imaging’s product could represent an upcoming wave of commercial real estate innovation.
“Commercial real estate is one of the last major industries to be truly disrupted by technology because it's one with a very tangible product,” said Kline. “We’re in that moment where [tech disruption] is happening and this seems like a natural extension of that where you won’t have to physically see something.”
Innovation in real estate
Offutt comes from a career in commercial real estate focused on making buildings perform better, be more sustainable and have better material choices. He was the customer relations specialist at Green Building Education Services before a manager of technology at Sustainable Investment Group, LLC.
As someone who was building hardware and software for computers since the age of 12, Offutt felt not enough was being done to disrupt the commercial real estate space, thus spurring the idea for Aetos Imaging.
The startup is primarily focused on Class A commercial real estate, although Offutt says it has also found success in industrial manufacturing spaces.
