Alate Partners, a Toronto startup focused on the property-tech market, launched today with the close of a $40 million seed financing, according to a news release.
The round was backed by real estate company Dream Unlimited, the affiliated Dream Office REIT, and mobile venture capital firm Relay Ventures.
The seed deal is the largest in Canada in two years, Refinitiv data show.
Along with funding it, Dream and Relay incubated Alate. Its creation is intended to drive development of an ecosystem that brings proptech companies together with real estate owners and operators.
Alate will form strategic partnerships with early-stage and growth companies featuring innovations that enhance how commercial, industrial and residential real estate is designed, built and managed.
So far, it has invested in two companies, the release said.
One is Lane, a Toronto mobile tenant engagement solution geared to office buildings. Lane is participating in the Colliers Proptech Accelerator run by Techstars.
The other is ParkWhiz, a Chicago smart parking solution that connects parking lot operators with drivers. Alate invested via ParkWhiz’s recent US$25 million Series D round led by NewSpring Capital.
Relay Managing Partner John Albright, who sits on Alate’s board, said its launch will tap into the “tremendous potential” of proptech, an industry vertical “that is primed for significant global growth.”
At present Alate has one executive, Courtney Cooper, a former Dream manager, who is building the team.
Based in Toronto and Silicon Valley, Relay is currently investing from Relay Ventures III, which which raised $200 million in 2016.
Last month, another Relay-incubated startup, MobSquad, a Calgary provider of engineering talent to tech companies, launched with $11 million in financing.