Calgary-based proptech startup OpenHouse.ai has raised $1.5 million CAD for its AI-powered house planning and marketing platform for builders.
OpenHouse said its seed funding will help it prepare for large-scale investments in product development and improve its sales and marketing.
The seed round closed in January and was led by Trico Ventures with participation from undisclosed home builders across the United States (US) and Canada. OpenHouse’s shareholders include members from the home building industry, venture funds, and housing think tanks including the Urban Land Institute and National Home Builders Association, the company told BetaKit in an email statement.
OpenHouse said the funding will allow it to deploy its offering, which helps builders understand home buyers needs and optimize construction operations with AI, across North America.
“Housing affordability and availability are significant challenges across North America,” OpenHouse co-founder and CEO Will Zhang said in a statement. “By leveraging AI, we can offer builders new solutions to manage their risks and navigate cyclical market conditions with confidence and predictability, improving productivity to deliver homes more efficiently and increase profitability by matching sales to market demand.”
The company told BetaKit it has raised $3 million CAD to date, including this raise.
OpenHouse was founded in 2018 by Zhang and Yanky Li, the latter now a growth coach at Communitech, and launched its offering 2022. The platform provides a digital housing storefront that analyzes customer behaviour and delivers insights to builders about desired features and floor plans in certain communities.
OpenHouse claims these insights help builders understand market demand and shifting buyer behavior.
The startup also says that its platform can identify construction bottlenecks and help users manage operations to reduce construction cycle time and minimize waste.
OpenHouse said that developers require new tools to address Canada’s housing crisis, and it believes AI “holds the key”. A Canada Mortgage and Housing Corporation (CMHC) report released in September 2023 found that Canada will need 3.5 million more housing units on top of what is already being built to restore housing affordability.
Over the past year, OpenHouse said it has expanded its footprint in Alberta, following a June 2023 partnership with Calgary-based homebuilder Trico Homes, and entered the Washington, Colorado, and Tennessee markets.
OpenHouse said its seed funding will also help it prepare for large-scale investments in product development and improve its sales and marketing.
UPDATE (02/13/24): This story was updated to note information shared by OpenHouse.ai.
Feature image courtesy OpenHouse.ai.