Xceligent Lands $2 Mil in Financing

INDEPENDENCE, MO-Xceligent, a business software technology firm providing a data exchange system for the commercial real estate industry, has secured $2 million in its fourth round of equity financing. Lenexa, KS-based W. P. Love Partners has led all four rounds, which have raised $7 million in equity capital since Xceligent’s inception in January 2000.

Xceligent will use the new funding to expand into eight new markets by mid-2002. The company now operates locally controlled exchanges in the Kansas City metropolitan area, San Diego and as of Jan. 1, in Atlanta. Minneapolis will be online by the end of the first quarter 2002.

Several commercial real estate professionals– brokers, appraisers, property owners,developers and lenders–subscribe to Xceligent’s database application that lets them share property information online with other commercial real estate professionals. The CDX is also a research tool, enabling subscribers to store, search and report on a complete set of data fields for an entire universe of properties.

Xceligent officials say their business model is all about local control for the commercial real estate industry. As the commercial real estate industry began to outsource the control of market information to third-party providers, it lost control of the information that is critical to how the industry conducts business.

Xceligent officials say their system allows commercial real estate professionals retain rights to their information, set the business rules for their market and still have a sophisticated system. While the industry bears the cost of development efforts, eachlocal market retains control of its exchange. Xceligent also provides field research teams as well as project managers to help the process.

To get an exchange started, Xceligent can research every building in the market to build the data set, so the system is populated with data that has no legal restrictions. This is important in markets where a third-party company owns the data and not the industryprofessionals.