NEW YORK, May 15, 2025 (GLOBE NEWSWIRE) -- Algoma, the AI-native real estate development platform that helps real estate developers turn an address into a deal, today announced it has raised $2.3M in seed funding. Founded by three Harvard graduates, Algoma’s funding round was led by Zacua Ventures, with participation from SOSV, Iron Prairie Ventures, DOMiNO Ventures, Compose VC and a network of angel investors across AI, construction, and real estate.

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Algoma’s software accelerates real estate developers' decision-making by delivering site feasibility in minutes. By combining market intelligence, zoning analysis, capacity calculations, construction cost data, and pro forma modeling, Algoma gives developers the confidence to make go/no-go decisions faster and at a fraction of the typical cost.

Algoma plans to invest the funds in expanding its engineering team, enriching its product suite, and advancing its web platform. “We invested in Algoma because they’re solving a foundational problem in the built environment, bringing speed, structure, and confidence to site selection and feasibility. Their platform empowers developers and contractors to make smarter decisions earlier, and we believe it will become an essential part of how the industry evaluates and executes new projects,” said Vivin Hegde, General Partner at Zacua Ventures.

Real estate is the world’s largest asset class, globally valued at over $600 trillion, yet much of it still runs on manual labor and outdated processes. The pain is most acute during pre-construction, where developers must navigate high-stakes decisions with fragmented information and little transparency.

“Our team understands the complexity of site analysis firsthand given we have spent our careers navigating it, zoning codes are buried in PDFs, developers rely on dozens of consultants, and they spend thousands of dollars and weeks, if not months, just figuring out if a site is viable,” said Josef Bromovsky, Co-Founder and CEO of Algoma. “They try to stitch together spreadsheets, email threads, and rough pro formas, only to find that the opportunity has already passed by the time they reach a decision. That’s why we built Algoma: to bring the speed, clarity, and intelligence that today’s developers deserve.”

While much of the real estate tech stack is built for large institutions, Algoma is intentionally focusing, in the near term, on a frequently overlooked segment: small and mid-sized developers. These are the teams behind urban infill projects, mixed-use developments, affordable housing, and workforce housing, the true backbone of city-building across America.

 “We’re giving real estate developers superpowers, helping them get investor-ready presentations in just a few days,” said Seyfihan Usarer, Co-Founder and COO of Algoma. “By democratizing feasibility studies, we are enabling developers to move faster, evaluate more deals, and make better decisions with less risk. The result is more projects breaking ground, and more housing entering the pipeline.”  

The Algoma platform includes:  

• Instant zoning analysis  
• Market intelligence   
• Site-specific design massing  
• Unit mix and layouts  
• Pro forma generation  
• Visualization for investors and agencies 

“Real estate has long been an antiquated industry, slow to change and reliant on ‘back of the envelope’ calculations,” said Kyle MertensMeyer, Co-Founder and CPO of Algoma. “We knew there was a better way. By deeply engaging with our users and building around their specific needs, we’ve focused our product on the real pain points, reducing risk for developers and earning trust in the process. That’s how we’re building long-term loyalty for Algoma.”

As part of its commitment to driving innovation in sustainable and efficient construction, Algoma was also selected for two grants from two competitive initiatives,  NYC Mass Timber Studio, led by the New York City Economic Development Corporation, and the Georgia Mass Timber Accelerator, organized by the Georgia Forestry Foundation.

About Algoma     

Algoma is an AI-powered development platform that automates pre-construction services for real estate developers. The platform streamlines feasibility analysis, zoning research, financial modeling, and early-stage design into one cohesive workflow, helping developers deliver housing faster and at a lower cost.  Learn more at algoma.co.  

For media queries and other information, please contact:

Seyfihan Usarer
Co-founder and COO
Algoma
seyf@algoma.co