Nasdaq Ventures has recently invested in Dealpath, a cloud-based real estate deal management platform. The strategic investment initiates a developing partnership to further enhance real estate investment workflows and supports Dealpath’s vision of creating an efficient, digital, global marketplace built for the world. We sat down with Mike Sroka, CEO and co-founder of Dealpath, to learn more about the company’s mission.
Tell us about Dealpath. What is the solution, and how does the solution empower the real estate industry?
Our mission at Dealpath is to empower real estate investment and capital markets with data and collaboration through purpose-built software. We believe that real estate is driven by people with information to shape our built world. Today, Dealpath is the industry’s leading deal management platform powering hundreds of top firms and has supported over $6 trillion in transactions. Clients are leveraging Dealpath as their system of record and platform for generating investment analysis and investment decisions. Dealpath clients are benefiting from immediate returns and proven results, including an average ROI of 475 percent, 20 percent more deals evaluated, 30 percent fewer errors in underwriting and due diligence, 50 percent increase in weekly productivity and 60 percent lift in employee satisfaction.
How did Dealpath come about?
Dealpath has been borne out of identifying the inefficiencies and lack of specialized technology solutions for real estate deal teams. Investment teams waste enormous amounts of time, money, and energy in managing their deals, wrangling the siloed data and information surrounding these deals and trying to coordinate and collaborate with teams across departments, time zones and the globe. This is not the highest and best use of a firm’s most valuable resources, its people, nor is it the most effective way to accomplish this important work. We started Dealpath more than six years ago with a clear view of the challenges and customer pain points by identifying the opportunities to improve the work from pipeline through portfolio management. We’ve worked with hundreds of teams to understand their priorities, processes and inefficiencies. It became clear to us that in an increasingly competitive and complex marketplace with clear economies of scale, investment teams require specialized platforms, software tools and services in order to achieve optimal outcomes.
Where are you focused now, and what are the next steps in your journey?
We’re continuing to rapidly expand the capabilities of our purpose-built deal management platform that streamlines deal and portfolio management online to drive performance and scale. We are focused on our vision that the built world transacts on Dealpath by creating an easier, more effective experience for clients with reduced friction in deal evaluation and data entry, and centralizing information with system integrations and consolidation to unlock efficiency and value creation.
In the current COVID business environment, how do you see Dealpath playing a role?
[DP-MS] COVID has caused an acceleration and inflection point in the adoption of real estate software services and the digital transformation of real estate. The current working environment shines a spotlight on the critical need for having centralized data that is globally accessible, configurable workflows to keep teams on track from wherever they might be working, and data security on which that you can depend. Executive Teams, Investment Committees and Portfolio Managers must now be experts in leveraging collaborative software tools as a core part of the business. Dealpath is playing a central role in real estate investment and capital markets in the age of intelligent software.
Dealpath recently announced a new offering called Dealpath Connect, providing “automated deal ingestion”-- how are clients benefitting?
Yes, this strategic investment partnership with Nasdaq comes on the heels of Dealpath’s recent announcement of a market-leading innovation, called Dealpath Connect, an automated deal ingestion and data integration between top investment sales brokers and institutional buy-side investors providing one centralized command center. This offering enables the seamless and selective sourcing of data from sell-side advisors directly into the internal deal pipelines of shared clients saving thousands of hours of manual work on both sides of real estate transactions, providing greater visibility and processing of investment sales opportunities.
Can you provide an overview of the Dealpath Methodology called DACS?
Through our work over the past decade with hundreds of leading firms, Dealpath has identified four key pillars for building value and operational excellence through investment performance engineering: Data, Automation, Collaboration, and Scale, which we refer to as “DACS,” our methodology.
DACS is a framework for understanding, competing, and operating in the digitally transformed business and network of real estate.
A new breed of investment manager is deploying DACS and growing an operational backbone without traditional constraints, unlocking value exponentially with inherent relentlessness in execution.
Four Key Pillars of DACS:
Data: Real estate markets have always been about people with information, and we have ever-increasing access to data. In order to glean actionable insights from data, it must be structured and formatted in logical ways, easy to retrieve and visualize, and accessible from wherever we may be working.
Automation: Real estate investment professionals’ work is valuable and time-sensitive. Accuracy and speed are both imperative but typically come into conflict with each other, and skilled professionals often find themselves performing repetitive, administrative tasks that do not contribute to their value-add work. Tailored software systems are well-suited to perform these functions quickly and with precision.
Collaboration: Real estate teams require clear communication from within their teams, across departments, as well as externally with vendors and partners. Email and phone calls are not sufficient for professionals who need to collaborate frequently on critical business matters, and specialized solutions provide these capabilities.
Scale: The real estate business has clear economies of scale, and it’s only possible to effectively manage a growing portfolio and investment program with configurable processes and tools that are integrated into a modern real estate tech stack.