BREAKING: GROTTO AI RAISES $10M SEED LED BY ICONIQ CAPITAL AGENTS WHO MAKE PROSPECTS LAUGH ARE 48% MORE LIKELY TO CLOSE, SAYS NEW DATA WEIDNER APARTMENT HOMES DEPLOYS AI COACHING ACROSS 70,000+ UNITS FOUNDERS PREVIOUSLY BUILT CORE AI AT EVOLUTIONIQ, SOLD FOR $730M VACANCY LOSS COSTS MULTIFAMILY OWNERS AN ESTIMATED $500B BREAKING: GROTTO AI RAISES $10M SEED LED BY ICONIQ CAPITAL AGENTS WHO MAKE PROSPECTS LAUGH ARE 48% MORE LIKELY TO CLOSE, SAYS NEW DATA WEIDNER APARTMENT HOMES DEPLOYS AI COACHING ACROSS 70,000+ UNITS FOUNDERS PREVIOUSLY BUILT CORE AI AT EVOLUTIONIQ, SOLD FOR $730M VACANCY LOSS COSTS MULTIFAMILY OWNERS AN ESTIMATED $500B
Company Profile / Proptech / New York Grotto AI product - a leasing agent showing an apartment during a tour

Grotto AI

An AI that listens to your leasing calls, and tells the human what to say next.

A leasing agent walks a stranger through an empty apartment, five times a day, hoping this is the one who signs. Grotto AI is the quiet voice in the software suggesting the next question to ask.

$10M
Seed Round
2025
Founded
12
Employees
70K+
Units Under Coaching
The Pitch

The $500 billion problem nobody automated

There is a number people in multifamily real estate cite the way climate scientists cite parts-per-million: $500 billion. That is roughly the property value erased industry-wide by vacancy - apartments sitting empty, rent that never gets collected, revenue that simply does not happen.

Most of the last decade of proptech tried to fix this by automating the boring parts - scheduling, screening, follow-up texts. Grotto AI, a twelve-person startup out of New York, looked at hundreds of thousands of real leasing calls and tours and found something less automatable: the deciding factor was often not the floor plan or the price. It was whether the agent asked a genuinely curious question, or got the prospect to laugh.

So the company built a product that does not replace the leasing agent. It coaches them, live, mid-call and mid-tour, nudging toward the behaviors its data says convert - at that specific property, for that specific prospect.

What The Data Actually Shows

Small human moments, big conversion swings

Grotto's research, drawn from analysis of leasing interactions, found that soft skills moved the needle more than most operators assumed.

Top agents vs. average, conversion rate10x
Lift from a laugh moment during a tour+48%
Lift from leading with genuine curiosity+35%

Figures as reported by Grotto AI and its investors; percentages reflect relative lift, not shares of a common total.

Founders

Two AI engineers, one detour into apartments

Nick Deveau and Ben Epstein met at EvolutionIQ, where they led development of the core AI technology behind that company's $730 million acquisition in 2024. Their backgrounds span hiring, healthcare, and insurance - regulated, human-heavy industries where AI has to earn trust one interaction at a time.

Nick Deveau

Co-Founder & CEO

Entered real estate after learning that vacancy losses cost the industry roughly $500 billion in property value. Says the goal isn't replacing agents, but "doubling down on humans in the moments that matter most."

Ben Epstein

Co-Founder

Nearly two decades building and scaling AI solutions with Deveau, focused on making complex guidance systems feel simple enough for frontline, non-technical teams to trust immediately.

Agents are 48 percent more likely to convert if they're leading with curiosity. Nick Deveau, Co-Founder & CEO, Grotto AI
What It Does

Three products, one job: make the human better

Call Guidance

Real-time prompts delivered to leasing agents mid-call - what to ask, how to handle an objection, when to push for the tour booking.

Tour Coaching

Self-serve prep before a prospect tour, plus structured feedback after it, reinforcing whatever behaviors are actually working at that property.

Grotto Intelligence

The analytics layer underneath both products - it identifies the specific revenue drivers for each property, rather than applying one generic script everywhere.

The Money

ICONIQ's earliest bet, right after Anthropic

Grotto AI closed a $10 million seed round in February 2026, led by ICONIQ Capital - the same firm that had just co-led Anthropic's $30 billion Series G. Multifamily-focused Asymmetric Capital Partners participated, alongside angel investors David Dear (BILT, formerly Equity Residential), Caren Maio (Funnel Leasing), and Avi Dorfman (Compass).

We believe they're solving one of the most quantifiable problems in multifamily by driving real, measurable revenue growth. Grotto AI delivers results you can see on a P&L, not just a dashboard. Tengbo Li, ICONIQ Capital
2025

Grotto, Inc. founded by Nick Deveau and Ben Epstein in New York.

Feb 2026

Announces $10M seed round led by ICONIQ Capital, one of the firm's earliest-stage investments to date.

Mar 2026

Profiled by Commercial Observer and AlleyWatch; Weidner Apartment Homes deployment across 70,000+ units highlighted as flagship case study.

Fine Print, Fun Facts

Things worth knowing

Grotto is SOC 2 Type II and ISO 27701 certified, and built to stay Fair Housing compliant - a non-trivial requirement for anything coaching what a leasing agent says.

The company charges per property, per month - a subscription model, not a per-seat or usage fee.

Deveau and Epstein's prior company, EvolutionIQ, sold for $730 million in 2024 - a data point investors clearly noticed.

Grotto's research base draws on hundreds of thousands of real leasing conversations, not a lab simulation.

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