DeFi Development Corp. provides an AI-powered online platform that connects the commercial real estate industry by providing data and software subscriptions and other value-added services to multifamily and commercial property professionals and connect them with commercial property lenders and brokers. These property lenders include traditional banks, credit unions, real estate investment trusts (REITs), debt funds, and other financial institutions looking to deploy capital into commercial mortg...
DeFi Development Corp. provides an AI-powered online platform that connects the commercial real estate industry by providing data and software subscriptions and other value-added services to multifamily and commercial property professionals and connect them with commercial property lenders and brokers. These property lenders include traditional banks, credit unions, real estate investment trusts (REITs), debt funds, and other financial institutions looking to deploy capital into commercial mortgages.
The company provides a technology platform that connects commercial mortgage and small business borrowers looking for debt to refinance, build, or buy commercial property, including apartment buildings to commercial property lenders. These property lenders include traditional banks, credit unions, real estate investment trusts (REITs), debt funds, and other financial institutions looking to deploy capital into commercial mortgages. The company serves hundreds of thousands of web users annually, including multifamily and commercial property owners and developers applying for billions of dollars of debt financing per year, professional service providers, and thousands of multifamily and commercial property lenders, including more than 10% of the banks in America, credit unions, REITs, debt funds, Fannie Mae and Freddie Mac multifamily lenders, FHA multifamily lenders, commercial mortgage-backed securities (CMBS) lenders, Small Business Administration (SBA) lenders, and more.
The company has developed an AI-enabled, B2B fintech platform that connects commercial borrowers and lenders, with a human touch. Commercial property owners, operators, and developers can quickly create an account on its platform, chat with the company’s AI, set up their own profile and submit and manage loan requests on their dashboard in a digital experience. The company’s algorithms automatically match borrowers to their best loan option(s) or to its internal capital markets advisors (inbound sales team) that guide the borrower through the process and connect them with the right loan product and lender. Originators that work at commercial real estate mortgage lenders can log in and use their lender portal to view, sort, and engage with their new matches in real-time and communicate with the borrowers, tracking their loans right through the company’s portal; they can setup the types of deals they are looking for as well. The company’s capital markets advisors have their own interface that gives them access to targeted loan opportunities, market intelligence, and data empowering them to better assist borrowers in managing their choices, leading to the best possible outcomes for both lenders and borrowers while building trust, all of which enhances its brand.
The company has two different customer segments: lenders and borrowers. Borrowers include, but are not limited to, owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners. Lenders include banks, credit unions, REITs, Fannie Mae and Freddie Mac multifamily lenders, FHA multifamily lenders, debt funds, CMBS lenders, and SBA lenders.
The company’s business model includes earning a transaction fee each time a loan closes with a lender through its platform. The company derives its revenue primarily from platform fees and subscription revenue. Platform fees include referral and advisory fees generated from multifamily and commercial real estate and small business debt transactions. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied and the promised services have been transferred to the customer. The company’s services are generally transferred to the customer at a point in time, which is when the underlying lending transaction has closed and successfully funded. The company’s data and software offerings are generally offered on a subscription basis as software as a service (SaaS). Subscription revenue is derived from the following:
Janover Pro, which was launched in 2024, is the company’s online SaaS marketplace for multifamily and commercial real estate loans providing an online matching service where borrowers or brokers can shop their loans, and lenders can provide financing to borrowers. The company’s customer pays for subscriptions, which are generally on annual contracts, and it generates revenue from SaaS subscription fees, which are recognized over time, throughout the term of the customer contract.
Janover Connect is a real estate syndication software and investor portal, which primarily derives its revenue from SaaS subscription fees, which are recognized over time, throughout the term of the customer contract. Janover Connect is a specialized SaaS platform designed to simplify capital fundraising and investment administration in the commercial real estate industry. By offering an intuitive portal, it enables commercial real estate professionals to efficiently manage equity capital, investor relations, and document sharing, fostering a seamless and professional investment experience. The platform also facilitates secure financial transactions and offers robust customer relationship management tools, aiming to enhance transparency and engagement between property developers and investors.
Janover Insurance, which was launched in 2024. This Insurtech subsidiary derives revenue from subscriptions pertaining to annual insurance premium commissions received, which are recognized at the start of the annual term, when the insurance coverage is bound.
Janover Engage, which is the company’s equity marketplace, was launched in 2024. Janover Engage is a SaaS platform designed to connect real estate owners, operators, and sponsors raising capital using Reg D 506(c) with potential accredited investors. Janover Engage provides general partners tools to market their offering and a platform on which to showcase it, making it easier for them to raise capital, build their pipeline, and focus on their next deal. Revenue is derived from the SaaS subscription fees, which are recognized over time, throughout the term of the customer contract.
Janover AI, which was also launched in 2024, is a generative AI platform that is trained on and programmed to understand the nuances of multifamily and commercial property capital markets, from debt, to equity, to operations. The revenue derived from these SaaS subscriptions will be recognized over the term of the SaaS agreement.
During fiscal 2025, the company will continue to focus on larger loan opportunities, which should increase its average loan size. In fiscal 2025, the company will continue to focus on transitioning from transactional platform fee revenue to the more predictable and profitable recurring SaaS subscription revenue.
Strategy
In 2025, the company will continue to better connect the commercial real estate industry by building tools that reduce frictions in transactions and that provide broader access to better data than entrenched incumbents. The company’s priorities are as follows:
Scale annual recurring revenue (ARR): The company plans to build its sales and outbound marketing capabilities to increasingly focus on selling profitable subscription services on annual and multi-year contracts. Making revenue more predictable and aligning the company’s incentives with those of its customers.
Expand net revenue retention (NRR): The most important thing to do is to listen to the customer and to solve their problems. By focusing on NRR as a core metric, it forces the company to concentrate on its customers needs and offer additional products. The company can measure attrition and expansion revenue with NRR which will gauge the level of its success.
Expand average contract values (ACV): The company has the opportunity to expand ACVs and average deal size by focusing on where it is able to drive the most value and create even more value. By focusing on creating more value per touch, it naturally will expand ARR and NRR.
Solution
The company’s solution is a B2B fintech marketplace that connects commercial borrowers and lenders in a flexible ecosystem, with the human touch of a capital markets advisor. Said more simply, a platform where commercial property owners, operators, and developers can leverage technology to find a better commercial mortgage and where commercial mortgage bankers can leverage that same technology to find new and better-fit commercial mortgage loans.
Advisor Enabled
The company’s capital markets advisors are an important part of its business model. Borrowers can come to one of the company’s websites or directly log into its portal, navigate to their dashboard, and submit or update their loan requests. Utilizing generative AI, the company’s powerful algorithms automatically match those borrowers to the best lenders, right through the platform, or with the service of an in-house expert advisor, so that they can connect directly to the lender and a better commercial mortgage. When the loan closes, the company gets paid, generally by the lender but sometimes by the borrower.
Principal Products and Services
The company has developed a flexible, two-sided, B2B fintech marketplace that connects commercial borrowers and lenders, with a human touch. Commercial property owners, operators, and developers can quickly create an account on its platform, set up their own profile and submit and manage loan requests on their dashboard in a digital experience. The company’s algorithms automatically match borrowers to their best loan option(s) or to its internal capital markets advisors that guide the borrower through the process and connect them with the right loan product and lender. Originators that work at commercial mortgage lenders can log in and use their lender portal to view, sort, and engage with their new matches in real-time and communicate with the borrowers, tracking their loans right through its portal. Capital markets advisors that work internally have their own interface that gives them access to targeted loan opportunities empowering them to better assist borrowers in managing their choices, leading to the best possible outcomes for both lenders and borrowers while building trust, all of which enhances the company’s brand.
Business Plan
The company’s business model includes earning a transaction fee each time a loan closes through its platform. The company is either paid a share of the revenue from the transaction by the lender; a percentage of the loan amount paid at closing by the borrower; or some combination of the two. The company’s average fee earned per transaction is approximately 1% of the loan amount generally earned at the time of closing.
The company has two different customer segments: lenders and borrowers. Borrowers include (but are not limited to) owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners (which represents a significant growth opportunity). Lenders include small banks, credit unions, REITs, Fannie Mae and Freddie Mac multifamily lenders, FHA multifamily lenders, debt funds, CMBS lenders, SBA lenders, and more. The company’s job is to obsessively focus on improving the experience and value for its two customer segments.
During fiscal 2025, the company will continue to focus on larger loan opportunities, which should increase its average loan size. In fiscal 2025, the company will continue to focus on transitioning from transactional platform fee revenue to the more predictable and profitable recurring SaaS subscription revenue.
Borrowers
Commercial property owners, operators, and developers are the company’s core customers. They are online looking for information on their next loan be it for an acquisition, recapitalization, or future property development. Maybe they will buy a small strip mall in a large market like Miami or build a 300-unit apartment complex in a small market in a town in Alabama.
Lenders
The company’s lenders are a material component of creating a two-sided market and without its lenders, there is no two-sided marketplace. Beyond that, they are a critical customer to whom it aims to deliver significant and long-term value. Many fintechs are making loans and becoming lenders that are competing with banks, credit unions, and other lenders. The company wants to empower lenders, making them more productive and efficient, by presenting them with high quality loan opportunities. The company has two classes of lenders:
Premier Lenders: The company’s premier lenders are lenders with whom it has an arrangement that allows it to share their fee income (i.e., origination, trade premium, and servicing). The company’s long-term aim with these relationships is to drive more business to premier lenders, less fees and costs to borrowers, and scaled economies shared to both.
Standard Lenders: The company aims to build and rely on the most robust network of lenders in the country whom it may not have a particular fee-sharing arrangement with. The company intends to invite these lenders to lender portal where they can easily build their profiles as originators under a particular lender’s brand as well as match, view, and manage loan opportunities through an easy-to-use tool.
Research and Development
The company’s research and development expenses for the year ended December 31, 2024 were approximately $655,000.
Strategy
The company will have the opportunity to build a comprehensive operating system for commercial real estate, as the formerly fractured market adopts technology. The company is operating with only a small number of lenders on its platform, and it is working hard to build a beautiful and seamless experience for originators all over the country to join its marketplace and build out their profiles. The company is operating with only a small number of lenders on its platform, and it is working hard to build a beautiful and seamless experience for originators all over the country to join its marketplace and build out their profiles. The company recently launched the first version of this, and it has been well received.
History
The company was founded in 2018. The company was incorporated in 2021 in the state of Delaware. The company was formerly known as Janover Inc. and changed its name to DeFi Development Corp. in April 2025.
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