- Artificial intelligence (AI) has the potential to radically disrupt the CRE industry, enabling companies to dramatically increase the scale and scope of their strategic, analytical and organizational capabilities.
- AI technology is already starting to impact CRE investment, with Covercy’s AI-driven CRE fundraising tool being a prime example of how the industry might profitably harness this emerging technology.
- This article briefly examines the capabilities of Covercy’s AI-powered CRE fundraising tool, and considers the potential implications of this tool for CRE investment managers.
Artificial Intelligence or ‘AI’ represents a watershed in the way that businesses operate. In the arena of finance and investment, AI technology is creating novel and far-reaching possibilities for enhancing, optimizing, and even transforming everything from strategic planning, to financing, market analysis, and operational management.
The disrupting potential of AI can be seen in the commercial real estate (CRE) industry, where AI-driven technology is being increasingly harnessed by firms to strengthen and expand their capabilities and competitiveness. To gain a sense of the potential power and significance of AI in the CRE industry, this article will take a closer look at a new AI-powered tool for CRE fundraising created by a company called Covercy.
Covercy’s AI-powered CRE fundraising tool
Covercy is a CRE investor management and banking platform that enables CRE investment firms to significantly increase the efficiency and efficacy of their fundraising capabilities. The Covercy platform also enables investors to identify and analyse prospective investment opportunities, and to administer their investment portfolios. Currently, more than 100 CRE investment firms and over 6000 investors are harnessing the Covercy platform.
Covercy’s services and products are integrated into the company’s CRE Banking Core architecture, which is the only one in the industry to provide features such as online capital call administration, and single-click distributions. In addition, Covercy has an extensive and robust privacy protection system, as well as a highly secure cyber-security system, and is comprehensively insured against risks relating to cyber-crime.
Recently, Covercy launched an AI tool for CRE fundraising that has the potential to significantly disrupt the CRE industry.
What is Covercy’s AI-powered CRE fundraising tool, and how does it work?
Covercy’s AI-driven CRE investment tool helps investment managers to find, secure, and manage investments with an unprecedented level of efficiency and efficacy, thereby dramatically reducing time-to-investment. As Covercy’s CEO, Doron Cohen explained in an October 5th press release, AI-driven fundraising is “a game changer for CRE investment managers”.
Traditionally, CRE fundraising is an arduous and slow process, with investment managers having to contact each investor directly. Furthermore, investment managers had little or no knowledge regarding the willingness and ability of investors to fund a specific project or deal.
In contrast, Covercy’s AI-driven fundraising tool enables investment managers to be far more targeted and efficient in their fundraising processes. The tool utilizes a proprietary neural network algorithm in order to make sense of data from multiple external and internal sources, and analyzes literally hundreds of thousands of data points to evaluate each investor’s expected returns, their appetite for risk, and their financial status at the time of the capital call.
Based on this analysis and evaluation, Covercy’s AI fundraising tool accurately determines which investors are most likely to fund a particular project, and presents investment managers with a listing of those specific investors. The tool therefore has the potential to enable CRE investment managers to achieve unprecedented reductions in time-to-investment.
The capabilities of Covercy’s AI-driven fundraising tool are enhanced by being integrated with Covercy’s complete Fundraising Module, which includes cutting-edge features such as embedded e-signatures for subscription documents, as well as an online system for capital call processing – the first of its kind in the CRE industry. The AI fundraising tool is also protected by Covercy’s cyber-security program, and all data is anonymized and secured in compliance with relevant data privacy legislation.
AI-driven fundraising tools: empowering CRE investment firms into the future
Covercy’s AI-driven CRE fundraising tool exemplifies the kind of possibilities that AI technology presents for CRE investment firms. The effective harnessing of this emerging technology is likely to give firms a decisive competitive advantage in the industry in the next five to ten years.
“By using an advanced deep neural network and other techniques, we have accurately modeled investment trends,” noted Idan Hahn, Covercy’s CTO. “Our algorithm helps commercial real estate investment firms save time by calculating the likelihood of each CRE investor to invest in a given deal according to its respective unique characteristics. We have seen promising results and look forward to extending the use of this algorithm to even further help CRE firms achieve and exceed their business goals.”
(For more detailed and comprehensive information on AI-driven fundraising, please visit https://covercy.com/demo).