Regional News

CoStar Group buys proptech startup for $65m

By Editor 0 Comments NEWS, Regional News

CoStar Group, an online commercial real estate services giant, has recently bought startup Cozy after being in business for only six years. CoStar purchased the startup for $68 million.

The rare tech company in North Portland, Cozy offers automated tools to help landlords manage their properties. Founded in San Francisco, the company opened a Portland office in 2013 and moved its headquarters here the following year.

It struggled in its early days getting landlords to sign up for its monthly subscription service, which screens prospective tenants and automates the collection of rent checks. So Cozy changed course and started giving some services away for free.

That immediately attracted more landlords, who then began paying for premium services including tenant screening reports, credit and debit card payments, rental insurance, rent estimates, and expedited payment processing.

Cozy says it handles online payments for 120,000, $1.4 billion altogether in the last 12 months. It says 50,000 landlords use its system.

The buyer, CoStar, is a publicly traded company based in Washington, D.C., that operates like a Zillow for commercial real estate, providing property information and analytics.

CoStar owns the LoopNet commercial real estate marketplace, Apartments.com, and other websites. CoStar has a market value of $13.4 billion; it reported $965 million in revenue last year, and profits of $123 million.

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