San Diego Fintech Blooma Raises $ 15 Million to Optimize Commercial Real Estate Underwriting



San Diego-based fintech startup Blooma, which makes software to optimize the underwriting of commercial real estate loans, raised $ 15 million in a Series A venture funding round.

Canapi Ventures topped the round. The firm specializes in investments in financial technology, and its limited partners are primarily banks. Existing investor Blooma Nyca Partners also participated.

The money will be used to recruit staff and develop a product for a company with 15 employees, whose technology platform collects and analyzes all data on commercial real estate loans in a few clicks instead of weeks, saving time and reducing costs for lenders. …

“Portfolio creation and management is largely done by hand,” said Shane Scaff, CEO and co-founder of Blooma. “There are tons of point solutions that people use, and it just takes a long time.”

Blooma uses optical character recognition, for example, to extract key data from documents in the underwriting process to quickly analyze and evaluate cash flows. This helps banks determine early on if a project meets its credit thresholds, without having to do a full review.

“We’re saving our clients about 75 percent of their time,” Scaff said, “and we’re improving productivity because now, as a bank, I can see three times as many transactions.”

Scuff was previously co-founder and president of MaintenanceNet in Karlovy Vary, a provider of web-based software that drives new customers to sales by reviewing the company’s service contracts. In 2015, it was sold to networking giant Cisco Systems for $ 139 million.

In addition to technologies to optimize underwriting, Blooma also offers real estate asset managers and brokers tools for monitoring, auditing, stress testing and analyzing borrowers, including obtaining data from third parties.

Blooma has analyzed over $ 12 billion in deals in the past 12 months. Clients include C3 Bank, Bank of Southern California and CB Richard Ellis, among others.

Scaff called Canapi the ideal option for Blooma because “all of their limited partners are banks. They are of strategic importance to us because we want all of them to be customers. “

Walker Forehand, partner at Canapi Ventures, will serve on Blooma’s board of directors.

“With core competencies in obtaining valuations, rents and other key financial data, Blooma is a strength multiplier for commercial real estate lenders, many of whom are constrained not by the flow of deals, but by their inability to effectively assess new opportunities and monitor existing portfolios,” Forehand said in a statement. … “During our review, we found that many of our limited partners were acutely aware of this pain, and we were extremely encouraged by the consistently positive response from our banks to the Blooma platform.”


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