PredictAP Secures $8M Series A Funding for Real Estate Accounts Payable Automation

PredictAP, a Boston-based proptech startup specializing in machine learning-enabled software for automating accounts payable in real estate, has closed an $8 million Series A financing round. The round was led by real estate technology venture capital firm RET Ventures, with additional participation from Wise Ventures.

Founded in 2020 by CEO David Stifter and Russell Franks, PredictAP emerged as a fintech solution to streamline the process of invoice ingestion and coding in real estate accounting departments. Stifter, who previously served as a managing director at Colony Capital, identified a gap in the market for efficient payable processing solutions. “This was a real-world problem around the payable process that as a big company kind of brought us to our knees,” Stifter told the Commercial Observer.

The new funding is earmarked for the development of additional software resources. Stifter highlighted the role of artificial intelligence and machine learning in PredictAP’s operations but noted the need for skilled engineers to refine these technologies. “The primary use of this money is for engineers to help us get better at solving our core problem — engineering, customer support, and customer success,” he said.

PredictAP’s journey began with investments from the co-founders, friends, and family. The startup soon recognized the need for more substantial funding to develop its AI and machine learning capabilities to meet growing customer demand. This need for capital is a common theme in startups, particularly those tackling complex technological challenges.

As the company expanded its customer base from five to approximately 50 by the end of last year, the demands of maintaining customer satisfaction and continuing expansion necessitated additional capital. “The demands of keeping 50 customers happy, all the work you have to do around customer support, and also continuing to expand, you need to have capital, which is the lifeblood of any startup,” Stifter explained.

Seeking Series A funding was not without its challenges, especially in the current funding climate where proptech has seen a tightening of capital. Stifter reflected on the evolving fundraising landscape, noting the increased diligence and vetting required in today’s market.

PredictAP’s AI-based software addresses a significant operational challenge in the real estate industry. Large real estate companies often process thousands of invoices monthly, each requiring manual data entry and coding—a time-consuming process. PredictAP’s solution leverages historical invoice data to automate the coding of new invoices, significantly reducing the time and effort required for this task.

The company's impact is evidenced by its growing user base. PredictAP now supports companies processing over 2 million invoices annually, including notable real estate customers like Bridge Investment Group, Garden Homes, The RMR Group, Starwood, and CA Ventures.

John Helm, a partner at RET Ventures, praised PredictAP’s technology and its swift sales and deployment cycle. “PredictAP’s powerful technology is one of the most successful uses of artificial intelligence that we’ve seen in the real estate sector,” Helm told the Commercial Observer. He also emphasized the vast potential for growth, considering the global volume of invoices processed annually.