JLL & Khosla Lead $12.5M Series A for Jones

Streamlining Vendor Compliance in Commercial Real Estate

Tenants and managers of commercial properties are subject to stringent liability regulations, necessitating insurance certificates and adherence to specific requirements from all vendors accessing the premises. Currently, the vendor approval procedure is often a lengthy, paper-based process that can span several days.

Introducing Jones: A Pre-Approved Vendor Marketplace

Jones, a commercial real estate startup headquartered in New York, is addressing this challenge by establishing a curated marketplace. This platform connects tenants and property managers with pre-approved vendors, facilitating compliant hiring practices.

Securing Series A Funding for Network Expansion

The company recently announced a $12.5 million Series A funding round, spearheaded by JLL Spark and Khosla Ventures. Strategic investors including Camber Creek, Rudin Management, DivcoWest, and Sage Realty also participated. According to Crunchbase data, this investment elevates Jones’ total funding to $20 million.

Digitizing Certifications and Approvals

Founded in 2017, Jones not only connects parties but also manages certifications and approvals, transitioning the entire process to an online system. Co-founder and CEO Omri Stern explained to TechCrunch that their technology can validate an insurance certificate in under an hour and reduce the complete vendor approval timeframe to 2.5 days – a significant improvement from the typical 12 days – with a 99.9% accuracy rate.

Addressing Inaccuracies in Current Processes

This accuracy is a crucial benefit. Current manual processes yield an accuracy rate of approximately 30%, according to Stern. Furthermore, the extensive nature of these certifications often places the burden of identifying missing information on property managers, diverting their attention from tenant-focused activities.

A Digital Experience for Commercial Real Estate

“Homeowners readily utilize online marketplaces to locate and engage services,” Stern stated. “However, office managers and tenants encounter obstacles in getting their preferred vendors approved. Our goal is to replicate a comparable, user-friendly digital experience within the realm of commercial real estate.”

Jones’ Competitive Advantage: Established Stakeholders

Stern emphasizes that Jones’ key differentiator lies in its established network of stakeholders, including prominent real estate firms such as Lincoln Property Co., Prologis, DivcoWest, Rudin Management, Sage Realty, and JLL.

The Untapped Potential of Technology in Commercial Real Estate

Yishai Lerner, co-CEO of JLL Spark, concurs, noting that commercial real estate represents a substantial asset class – one of the last to undergo significant technological transformation, mirroring the evolution of the fintech industry two decades ago.

A $16 Trillion Market Ripe for Innovation

Lerner estimates the U.S. market at $16 trillion, with technology poised to unlock considerable value. This potential was a primary motivator for JLL to establish JLL Spark, with Jones being among its initial investments.

A Personal Connection to the Problem

Lerner’s firsthand experience with the issue arose when his wife’s vendors were denied access to a new office building due to insufficient insurance coverage. This personal encounter highlighted the need for a technological solution.

The Time Burden of Vendor Compliance

“We discovered that property managers dedicate approximately half of their time to verifying vendor compliance,” Lerner explained. “This prompted us to question the absence of dedicated technology. Jones was already developing relevant solutions, and we integrated them into the commercial real estate sector to address this challenge.”

SaaS Tool Adoption and Growth

The Series A funding coincides with a period of accelerated adoption of Jones’ SaaS tool over the past ten months. While Stern refrained from disclosing specific growth metrics, he indicated that the primary driver is a growing demand for workflow solutions that surpass existing methods.

Future Plans: Product Development and Expansion

The newly acquired funds will be allocated to product development, focusing on streamlining and accelerating the approval process, as well as expanding the vendor network. Jones currently collaborates with tens of thousands of vendors. The company will also prioritize integration, offering an API for use in other sectors requiring robust compliance measures.

Building a Diverse Team

Stern also intends to bolster the team, adding expertise in fintech, cybersecurity, and insurtech to complement the existing real estate professionals.