EliseAI, a company that specialises in creating a range of advanced AI-driven property management tools for landlords, has successfully secured an impressive $75 million in a Series D funding round. This latest investment has resulted in the startup being valued at an impressive $1 billion.
Tony Stoyanov and Minna Song, who were both undergraduate students at Cambridge University, founded EliseAI. Following her graduation, Song relocated to New York City and secured a position as an administrative assistant at a residential real estate firm.
Song observed the detrimental impact of inefficiencies in the rental and leasing industries. Specifically, she noticed how these inefficiencies were causing exhaustion and burnout among management teams, particularly in relation to messaging current and prospective tenants. 
“Acknowledging this difficulty, Stoyanova and I embarked on the development of AI software aimed at streamlining communication,” Song informed Eltrys. “As a result, EliseAI was established in 2017.”
At present, EliseAI has a team of chatbots that handle various tasks like texting, emailing, and responding to calls from renters. These tasks include flat tours, maintenance requests, lease renewals, and delinquencies. The chatbots are specifically trained to handle enquiries and discussions from individuals seeking to rent apartments as well as current residents. They are programmed to seamlessly transfer requests to human agents whenever needed.
“We exclusively rely on internally generated data,” Song stated. We do not purchase or utilise external data sources. We have complete control over the data we use.
Being someone who values privacy, I would be cautious about sharing any personal information with texting chatbots like EliseAI’s, especially when it comes to participating in chats for the company’s AI training. Curious, I enquired with Song regarding EliseAI’s data retention policies. According to her, the company offers users the option to request the deletion of their data, opt out of sharing their information for training purposes, and, in accordance with regulations such as the California Consumer Privacy Act, obtain a copy of any data that EliseAI possesses about them.
“We do not sell, re-license, or share any consumer data for any purpose,” Song emphasised. As a consumer, I understand the importance of respecting consumer data. At our company, we recognise that consumer data belongs solely to our valued customers, such as property managers or owners. We handle this data with the utmost care, using it only for specific purposes as outlined in our customer contracts, privacy policy, and in compliance with the law.
Some reviews of EliseAI’s chatbots express criticism and indicate that the AI may struggle with capturing nuances. As per a reviewer’s feedback, the chatbots occasionally neglect to involve managers and agents when necessary, and they also schedule property tours without important details like a move-in date or phone number.
According to Song, EliseAI’s chatbots have shown significant improvement in anticipating renter needs. The company’s internal data indicates that these chatbots have increased lease tour bookings by an average of 125% and reduced overdue payments by 50%.
“Our technology is specifically tailored to meet the needs of both multifamily and single-family rental owners, operators, and third-party property management companies. It aims to streamline operations, minimise the need for multiple software solutions, lower costs, boost occupancy rates, reduce delinquent payments, and ultimately enhance the overall renting experience,” explained Song.
EliseAI provides a convenient dashboard for property managers to monitor requests from prospects and residents, such as work orders. It also allows them to generate reports on operations and keep track of renewal progress. The dashboard is included at no additional cost with any of EliseAI’s AI products, which are available as modules priced based on a software-as-a-service model.
EliseAI is in direct competition with other vendors such as Colleen AI, Funnel, Knock, and Leasehawk. Song mentions that the company boasts an impressive client base of over 350 customers, with a notable 70% of the top 50 rental housing operators in the U.S. among them.
“We prioritised controlled hiring and sustainable burn management while strategically investing in revenue growth rather than pursuing hyper-growth in headcount,” Song explained. It is evident that companies such as EliseAI, which successfully tackle long-standing enterprise issues like operational efficiency in stable markets like housing, continue to receive strong funding support.
As EliseAI secures another round of funding, the company is poised for further growth. With its headquarters in NYC and a team of approximately 150 dedicated employees, EliseAI is now setting its sights on the healthcare industry, a surprising move for the company. It is believed that a significant portion of the company’s technology infrastructure can be customised to cater to the administrative requirements of health clinics, such as managing appointments and handling billing and payments.
According to Song, multiple providers have already adopted the HealthAI healthcare solution that EliseAI introduced in 2023.
Competition in the market is fierce, as EliseAI will be up against other startups like Hyro. These companies also utilise AI to facilitate textual and voice interactions between healthcare organisations and their patients.
Point72 Private Investments, Divco West, Navitas Capital, and Koch Real Estate Investments all participated in the funding round, with Sapphire Ventures taking the lead. With the recent infusion of funds, EliseAI’s total raised now stands at $140 million. According to Song, the use of this additional funding will include growing the team, conducting AI research and development, enhancing product development, and supporting EliseAI’s go-to-market initiatives.
“We carefully selected Sapphire as our partner for the business,” Song emphasised, highlighting our primary focus on finding an excellent match. Cathy Gao, a Sapphire partner, has been appointed to join the board of directors at EliseAI.
“Although EliseAI is currently the leading AI platform in this field, the residential real estate market is just beginning to tap into the full potential of AI,” Gao stated. Based on my expertise, I am confident that the company is in a strong position to take the lead in the housing industry and achieve comparable success in other sectors, such as healthcare.
