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In this Research Note, we examine the smart buildings business of KODE Labs, a Detroit-based real estate technology startup founded in 2017.
The developer of the KODE OS smart building operating system has featured in Memoori Startups Reports over the last two editions as a company gaining traction. We review its product portfolio, funding, deployments and growth in this article.
KODE Labs Product Portfolio
KODE’s vendor-agnostic and open enterprise-level operating system collects live data into a single pane of glass for operations to visualize, schedule, and coordinate in real time enabling smart scheduling, predictive analysis, and energy optimizations.
KODE OS also serves as the centralized data platform that integrates all other IoT devices, allowing for data flow between various systems as required to best optimize building operations. The platform normalizes all the data collected from different sources, as well as validating and making it ready to be used in enabling over 200 use cases.
Funding
KODE Labs was founded in 2017 by Gentrit Gojani, Edi and Etrit Demaj, who self-funded the company for five years before their first capital raise in September 2022 with an $8 million round led by I Squared Capital. The company now has around 170 employees.
Deployments
KODE Labs serves 1,600+ buildings online, around 200 million square feet of real estate on three continents. The firm has over 55 certified channel partners. Clients include Bedrock Detroit, QuadReal Properties, Hines, 800 Fulton in Chicago, Ford and Empire State Realty Trust (ESRT).
Bedrock Detroit
Bedrock Detroit manages, owns, and operates over 100 buildings in Detroit, Michigan, and Cleveland, Ohio, and is leading the revitalization of downtown Detroit and Cleveland through an ongoing stream of construction and renovation projects. Bedrock Detroit
recognized that operating their buildings with a multitude of various systems installed by different subcontractors was not efficient at scale.
KODE Labs has provided Bedrock Detroit with a platform that enables their team to proactively identify issues before they have major impact. They are also able to monitor and control assets directly from the field through native mobile applications, and track and analyze the energy performance of all systems and devices across the portfolio.
With the use of energy dashboards, consumption reporting tools, and hundreds of millions of data points collected each month, KODE Labs’ capabilities include automated functional testing, root cause analysis, and optimization analytics. Bedrock now oversees the whole portfolio from a centralized Command Center, allowing them to operate at a completely different ratio of people per building when compared to the industry average.
QuadReal
In October 2020, the company announced that it has been selected by QuadReal Property Group and Stream Realty Partners to provide the smart building operating system for the RiverSouth property, which consists of a 15-story property with 372,000 square feet of sustainable workplace space in Austin, Texas. In July 2022, RiverSouth received a SmartScore Platinum rating, making it “the smartest building in Texas”.
QuadReal followed a pragmatic and stepped approach to execute their Digital Strategy at scale across their global portfolio. KODE Labs shared the same vision of standardization and repeatability being paramount. QuadReal created a playbook to address new construction projects and retrofits, across all asset classes, to ensure consistency across buildings.
With KODE OS, they integrated all their BMS, Lighting, Energy & Utility Metering, Security System, Fire Alarm Systems, Elevators, Parking & EV Systems, A/V & Content Management, Connectivity Systems, IoT Sensors & Devices, Enterprise Platform, Customer Apps, Work Order Management etc., in one single platform. Similar to Bedrock, QuadReal is now working on optimizing their operations via Command Centers.
Growth
KODE Labs reported 300% revenue growth in 2023 and is well-positioned to exploit the demand for unified building operations software solutions in the competitive smart commercial buildings market.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.
