Grotto AI Raises $10M Seed Round to Supercharge Leasing Agents with AI

Grotto AI, an AI that supercharges leasing teams in the moments that matter most, led by Nick Deveau and Ben Epstein, has raised a $10 million seed round led by ICONIQ. Advisors and angel investors also include industry veterans David Dear (BILT, formerly Equity Residential), Caren Maio (Co-founder, Get100 and Funnel Leasing), and Avi Dorfman (Co-founder, Compass), with participation from Asymmetric Capital Partners.

While many industries attempt to replace frontline workers with AI, Grotto AI focuses on augmenting human performance in real estate leasing.

The platform analyzes leasing interactions to identify revenue drivers for each property and delivers real-time coaching during calls and tours to help agents build rapport, address objections, and close leases. It is already in use with major operators, including Weidner Apartment Homes, which manages more than 70,000 units.

Grotto AI was founded by Nick Deveau and Ben Epstein, experienced AI engineers who previously worked together at EvolutionIQ. Deveau, trained in AI at Stanford University, has led AI products for Fortune 500 customers, while Epstein focused on platforms enabling machine learning teams and, most recently, led development of EvolutionIQ’s proprietary LLM platform. Together, they bring a revenue-focused approach to building AI-native solutions.

Tengbo Li of ICONIQ Capital highlighted the founders’ track record in building vertical B2B AI products and cited Grotto AI’s focus on measurable revenue growth in multifamily real estate, emphasizing results visible directly on financial performance rather than dashboards.

Initial models at Grotto AI were developed by statisticians and AI researchers from Carnegie Mellon University and Stanford University using hundreds of thousands of leasing interactions. The analysis found interpersonal signals to be the strongest predictors of lease conversion: agents creating moments of laughter were 48% more likely to convert, genuine curiosity increased conversion by 35%, while common best practices such as requesting a tour or application produced about a 14% lift.

According to Nick Deveau of Grotto AI, leads are often escalated to humans based on complexity, whereas data suggests escalation should occur when intent and interpersonal warmth can influence outcomes, highlighting the value of uniquely human interactions.