Real estate startup Cozy sells to CoStar for $68M

November 9, 2018

by John Cook

GeekWire

Cozy, a Portland startup that helps more than 50,000 landlords screen potential tenants, market properties and easily collect rent, has been sold to CoStar group in a deal valued at $68 million.

“We believe that if we continue to focus on delivering a fantastic renter experience on Apartments.com, we will continue to be the most heavily trafficked website offering the most valued advertising solutions,” said Andrew C. Florance, CoStar Group Founder and Chief Executive Officer, in a press release. “Cozy’s technology makes the renting and payments process simple, secure, and intuitive. When combined with Apartments.com, the 40 million prospective renters that visit our network each month will be able to effortlessly locate, apply, lease and pay for their new rental home completely online.”

Washington D.C.-based CoStar, a provider of commercial real estate information, analytics and online marketplaces, boasts a market value of $13.2 billion, and employs 3,600 people. It bought Apartments.com for $585 million in 2014.

Cozy and CoStar play in an arena that’s especially interesting to Seattle-based Zillow Group, which earlier this year rolled out tools to make the landlord-renter ecosystem more efficient.

“Renters tell us they want the entire rental process to happen online, from search to application to payment,” Zillow President Jeremy Wacksman said in a statement at the time. “However, most landlords don’t have the resources to offer these services. We’re excited to provide the technology to help renters and landlords have a better experience.”

Founded six year ago by former Kosmix and Seabright Studios executive Gino Zahnd, Cozy ranked #92 on the GeekWire 200 list of privately-held tech companies in the Pacific Northwest. The company raised about $18 million in venture capital, and employed about 37 people, according to The Oregonian.

Backers included American Family Ventures, the VC arm of American Family Insurance, as well as Social Capital, General Catalyst Partners, Seven Peaks Ventures, angel investor Jason Calacanis, and others.