3D visualization technology has been around for some time, so Real5D closing a $1.2 million Series A rund from the U.S. venture fund DoubleRock might look out of place to some. But San Francisco-based startup Real5D has taken 3D visualization to an interesting level of interactivity by applying it to the needs of the commercial real estate industry.
Founded by the Hungarian Balazs Farago, Real5D received funds in its bank account within days after winning the competition at the Funders and Founders event Life 3.0 – Augmented Reality and New Media, and meeting its new investor Suraj Kumar Rajwani, the co-founder and general partner of DoubleRock Venture Capital, shortly afterwards.
The swiftness of the transaction (in less than 10 days) which, according to Farago is rather unusual even by Silicon Valley standards, goes hand-in-hand with the property development problems Real5D appears to have solved.
Usually, real estate projects have to be sold or rented out before the construction of the building is completed. Even before the construction begins, architects and property developers struggle to agree on the final design for the same problem: difficulties of visualization. Typically, architects or sales agents use floor plans, 3D models and videos, which are supposed to help prospective buyers or tenants visualize the end result.
However, according to Farago, who held C-level positions in the commercial real estate industry in Hungary until founding the company in 2007, photos and videos are not good enough. This is where Real5D technology can help. Based on the floor plans, the Real5D team uses its 3D engine and visualization technology to create an interactive 3D model of a building. The viewer can then “walk through” the virtual model of the building, look at it from every angle, get a perception of the space from within the property, but most importantly, interact with the sales person within the virtual property.
In addition to offering visualization service to the property developers, Real5D’s own 3D engine will also be licensed to architects, who will use it to build their own 3D models and then show them to their client base.
Now, $1.2 million won’t last Real5D for too long, but it could be enough cash for the company to prove its model, and begin to bring in revenues. According to its release, the company intends to use monies to invest in product development and marketing. Real5D has yet to take its platform mobile, though it is currently working on doing so.
The company, should it manage to attract sufficient users, has what appears to be an easy road to monetization. Purveyors of real estate, especially in the current troubled market, are constantly looking for new tools that they can use to boost the chance of a sale.
