Largest U.S. Realtor Group Invests in Blockchain-based Startup Propy
The U.S. National Association of Realtors (NAR) has reportedly acquired a stake in Propy, a blockchain-based real estate firm.
A press release shared on Monday noted that the two sealed the deal through NAR’s real estate tech venture capital arm the Second Century Ventures. Per the press statement, the VC fund is said to have invested an undisclosed sum in Propy through the fund’s REACH accelerator program.
Propy is a startup platform that allows its users to complete real estate transactions online, with the deals recorded on a blockchain. The firm also provides for traditional methods of handling deals.
According to Crunchbase, the startup raised a total of $15.5 million through an initial coin offering (ICO) in 2017.
The startup provides a blockchain-enabled service that connects buyers, sellers, and brokers in the real estate industry. It allows these players to initiate and close all manner of property deals, exploiting a paperless process executed online.
The blockchain-powered platform also offers access to real estate agent tools such as DocuSign that help to reduce security risks like wire fraud.
Propy previously partnered with Hilton & Hyland, a Beverly Hills-based real estate brokerage firm, in a deal that saw the two collaborate to auction an Italian mansion built in the 17th century.
The partnership was sealed in May last year and saw Propy help in the sale of a section of the Palazzo Albertoni Spinola, a mansion built in the years 1580 -1616.
The firm also helped Michael Arrington, the founder of Techcrunch, to complete a blockchain-based purchase involving a $60,000 apartment located in Kiev. The deal’s settlement happened on the ethereum blockchain and used smart contracts.
Commenting on the deal with NAR and Second Century Ventures (SCV), the CEO of Propy Natalia Karayaneva noted that the startup was leading the push to bring “automation and blockchain to real estate,” achieved via an easy-to-use platform that brings together buyers, sellers, and agents.
Karayaneva also added that collaborating with Second Century Ventures and executives of NAR would increase the adoption of the startup’s products.
The National Association of Realtors (NAR) is the biggest U.S.-based real estate trade organization, boasting 1.3 million members spread across the industry’s residential and commercial sectors.
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