A Cincinnati tech startup that’s building a software platform for the commercial real estate industry has received its first investment from a prestigious Silicon Valley accelerator that’s graduated companies like Dropbox, Airbnb and Stripe.
Resquared, a startup founded in March 2020, said Wednesday it was chosen to participate in Y Combinator’s winter 21 batch, a program that provides entrepreneurs with networking, mentorship and advice during a three-month span as well as $125,000 in seed funding in exchange for 7% of the company. The batch is currently underway.
The six-figure investment represents the first funds Resquared has raised outside of friends and family, and the Y Combinator selection gives the nearly 1-year-old company an automatic credibility boost.
Y Combinator, founded in 2005 and based in Mountain View, Calif., is considered the most prestigious investment group in the country, Griffin Morris, co-founder of Resquared, told me, and consistently ranks as the nation’s top accelerator. It traditionally accepts less than 2% of the companies that apply, he said.
“Y Combinator tends to accept startups that they think could have a great impact, and we’ve already had a decent amount of traction in terms of customers and revenue – and we did that during a really difficult year,” Morris said. “This gives us instant credibility with investors, employees and to some extent, customers.”
Resquared, in short, helps shopping center owners and landlord brokers fill vacancies with small businesses, like local restaurants or medical offices, a trend that has accelerated since the start of the pandemic as national and corporate chains continue to downsize.
The company said its software saves time, generates more leads and finds higher-quality tenants for its clients. So far, the startup has signed on customers like Weingarten Realty, RPT Realty, MRP Capital, North American Properties and Colliers International.
Morris said Resquared grew about 20-30% every month throughout the summer and end of last year. In January, that number was around 60%.
“The fact that we were able to find a way to help our commercial real estate customers find new tenants when all the headlines have been about businesses not being able to pay their rent is significant,” Morris said. “Even though small and local businesses are struggling, too, those are also the most likely to sign a new lease right now. Those owners are looking for new opportunities, or maybe they’re having issues with their current landlord, or have been able to adapt, and now is a great time for them to expand.”
Resquared, Morris said, will use the Y Combinator investment to accelerate the growth of its team, which currently stands at seven employees. Morris said he plans to at least double the size of the company over the next few months. All Resquared employees work remotely, and Morris is the only one based in Cincinnati, which is considered the company’s headquarters. Fellow co-founder Tyler Carlson is located in Tampa, respectively.
Y Combinator’s winter 21 batch launched virtually in January and is taking place through March. A total of 44 startups were chosen for the session. Resquared is one of only two Midwest companies in that lot.
