Case: Realsource

Realsource logoRealsource is a commercial real estate marketplace. It is an online service for investors to find commercial real estate and a very efficient way of selling commercial real estates for sellers. For the investor Realsource gives all the information the investor needs to decide to commit to a bidding process. On the other hand it helps the seller find as many potential investors as possible thus helping to get better selling price. The total annual transaction volume in commercial real estate sector was between 30-35 billion USD in the Nordics and appr. 200 billion USD in 2013 in the EMEA, the trend being rising. Based on current agreements Realsource will get 0.2% of transaction volume. This results 70M revenue potential in Nordics alone and 400M in Europe.

Realsource scenario calculator

For buyer Realsource provides advanced tools for comparing the commercial properties and making smart purchase decisions.

Prior to Butterfly’s investment Realsource had developed fully functional beta site and secured a major Finish property owner as a customer for the first year.

“Internet has transformed almost every line of business, including most of real estate sector. For some reason, however, commercial real estate sector is still mostly relying on traditional ways of doing business. We’re going to disrupt that. One of Butterfly’s strengths is their knowledge of online businesses, that’s exactly what we need. We also liked their agile approach to business development as well as international networks.” (Markku Aho, Founder of Realsource)

Butterfly invested into Realsource because of balanced team with both excellent technological skills and experience as well as extraordinarily deep understanding of commercial property market. The product has very mature feel with unique set of features not seen yet in online commercial property trade. Furthermore Realsource had first significant customer signed in and there’s market opportunity worth at least hundreds of millions. Butterfly’s investment will be used to further develop the product, attract property inventory as well as validate the business model and value proposition.