DAYTONA BEACH, Fla.--(BUSINESS WIRE)--Colleen, the Artificial Intelligence (AI) platform optimizing payment collections for multifamily real estate business, announced today that it has raised $3.5 million in Series Seed funding. The round was led by Wilshire Lane Capital, an early-stage venture capital firm backed by Morgan Properties (the third largest NMHC multifamily apartments owner in the U.S.), with participation from Skybox Capital, owner of residential companies Magnolia Capital and National Home Rentals. Having identified value in Colleen, Morgan Properties, Magnolia Capital, and National Home Rentals are also existing customers.
Colleen is an AI-powered, integrated platform solution built to optimize rent and debt collections for multifamily apartment managers and residents. Exiting out of stealth mode with a customer pipeline of over 2.5 million units, Colleen will use the funding to scale its go-to-market organization and accelerate investments in product, engineering, and data science.
“Helping residents stay current with their rent payments, while ensuring that their apartment communities are operating at peak efficiency, is top of mind for our operators,” said Adam Demuyakor, Founder and Managing Partner at Wilshire Lane Capital. “Using their proprietary Generative AI modules, the Colleen team has paved the way for a new breed of innovative solutions that will help better serve our industry. We're excited to be partnering with Colleen to make a difference for property managers and their residents.” Demuyakor joined the Colleen Board along with the raise.
According to NMHC, approximately 20% of multifamily residents are expected to be late in paying rent. Property managers with Colleen reduce unpaid rent by over 30%. Leveraging AI and automation to proactively engage residents, Colleen steps in to not only collect rent, but also handles collections across the entire resident journey. With Colleen, property teams save time by 80%, and increase operational efficiency, helping multifamily businesses save millions of dollars on uncollected payments.
“We have experienced positive performance and have been impressed by the productive level of engagement between our residents and Colleen,” said Jason Morgan, Principal and President of Special Situations at Morgan Properties. “Colleen has been an exceptional partner, and we are encouraged by the impact they will make.”
Colleen is a trusted integration partner to leading property management software companies, including Yardi, RealPage, Entrata, RentManager, and ResMan, and automatically syncs resident and property data for simple, centralized access to payment forecasting and analytics.
“The real estate industry faces a huge collection challenge that can be mitigated with an innovative AI stack,” said Itamar Roth, CEO at Colleen. “We are excited to lead the space with Colleen by providing a reliable platform that helps our customers improve bottom line while streamlining what used to be time-consuming manual processes.”
The funding comes amid a period of significant growth for the company. Founded in 2021, Colleen has doubled employee headcount within the last year, and is actively hiring across sales and customer success divisions in the U.S.
About Colleen AI
Colleen is the AI-powered, integrated platform solution optimizing rent and debt collections for multifamily property managers and residents. By offloading the payment collections process and proactively engaging residents, Colleen saves property teams time, accelerates operational efficiency, and boosts the bottom line. For more details, visit colleen.ai.
About Wilshire Lane Capital
Wilshire Lane Capital (“WLC”) is an early-stage PropTech (real estate technology) fund, with a focus on high performing categories such as ecommerce and last-mile fulfillment, single family rental, multifamily technology, self-storage, and others. As a go-to strategic partner for PropTech startups, WLC provides real estate value-add by leveraging deep industry relationships and expertise. Wilshire Lane’s current partners in its Funds include Morgan Properties, Related, Sage Realty, Island Capital, and others.
About Morgan Properties
Established in 1985 by Mitchell Morgan, Morgan Properties is a national real estate investment and management company headquartered in King of Prussia, Pennsylvania. Jonathan and Jason Morgan represent the next-generation leaders growing the platform and overseeing the business operations. Morgan Properties and its affiliates currently own and manage a multifamily portfolio comprised of over 90,000 units across more than 345 communities in 19 states. The company is the nation’s largest private multifamily owner and the third-largest apartment owner in the country. With over 2,400 employees, Morgan Properties prides itself on its quick decision-making capabilities, strong capital relationships, and proven operational expertise. Learn more about Morgan Properties at morganproperties.com.