NEW YORK, March 07, 2022 (GLOBE NEWSWIRE) — Keyway, a commercial real estate technology platform for small and medium-sized business owners, today announced a $70M million financing round led by Cross River, i80 Group, and several community banks. Following the $15M seed round led by Canvas Ventures late last year, Keyway will use the new financing to scale its under $10M net-leased medical, dental and veterinary property acquisitions across the United States.
Combining deep technology and CRE experience, the Keyway team has been tackling the growing real estate market by improving the experience for small to medium-sized businesses and their investors. According to a recent survey, 91% of Real Estate Investment Trusts (REITs) said their focus is on deals above $10 million dollars. Yet properties valued at less than $10 million dollars account for one third of the US commercial real estate value. Keyway focuses on this under $10 million dollar segment and uses data and machine learning to reduce closing time by 90% and fees by 50%. With transactions already completed in several states including Georgia and Texas, the company has over $250M in its pipeline.
“Most institutional funds target larger assets,” said Rahul Jha, Head of Strategic Direct Lending at Cross River. “By focusing on the under $10M assets, Keyway is filling a key access gap for investors by providing useful data and simplifying the entire process, from start to finish.”
Keyway designed its platform for efficiency and ease-of-use by reducing the length and costly transaction experience and hopes to give all small and medium size businesses the opportunity for growth and expansion.
“There is a large opportunity within the CRE industry for a tech enabled capital solution to streamline underwriting processes and to shorten transaction timelines,” said Peter Frank at i80 Group. “The team’s background in technology and real estate have helped them build a product that business owners look forward to using.”
“Our investors knew that commercial real estate needed a technology solution that was focused on improving the customer experience while fully leveraging today’s digital tools such as data and machine learning,” said CEO and co-founder Matias Recchia. “By focusing on the sub-$10 million dollar market, we can tailor our product to their needs and give them the best possible experience.”
“With this new funding support from our investors, we can continue to address our growing pipeline with adequate resources and premium customer service,” said COO and co-founder Sebastian Wilner.
To learn more about Keyway, visit whykeyway.com
Keyway is the commercial real estate platform that makes it easy for small and medium businesses to quickly and predictably achieve their goals. The company is starting with a sale-leaseback solution to provide business owners capital to invest in their growth. The company was founded in 2020 and is headquartered in New York.
About i80 Group
i80 Group is an investment firm designed to propel the innovation economy forward by empowering growth. The firm provides bespoke financing solutions that are unique to each partner’s needs, advancing them through critical growth milestones. Like the I-80 freeway from which it takes its name, the firm operates at the intersection of Silicon Valley innovation and Wall Street finance. For more information, please visit https://www.i80group.com/
About Cross River
Cross River is a fast-growing financial services organization that merges the forward-thinking offerings of a technology company with the established expertise and traditional services of a bank. Since its founding in 2008, Cross River has developed strategic partnerships with leading technology companies, marketplace lenders and payment providers, while maintaining a strong focus on regulatory compliance and consumer protection. Cross River provides a highly secure, API-based banking platform and comprehensive suite of products encompassing lending, payments, risk management and Banking-as-a-Service (BaaS) offerings to deliver responsible financial solutions that empower businesses and consumers anytime, anywhere. Cross River Bank is a New Jersey state-chartered FDIC insured bank. For more information, please visit Cross River’s website at www.crossriver.com or Twitter @crossriverbank.