Paraito Secures Pre-Seed Funding to Enhance AI Solutions
Paraito, a Montréal-based proptech startup, has raised $2.65 million in a pre-seed funding round led by Inovia Capital, with participation from Boreal Ventures and contributions from friends and family, including notaries and lawyers. Founded by François Arbour, Marco Chénard, and Marin Savignac, Paraito accelerates the real estate title search process in Québec using AI technology, primarily serving notaries by automating the examination of land registry titles.
Automating Real Estate Title Searches
Paraito's platform leverages AI to tackle one of the most labor-intensive aspects of real estate transactions: the title search. This process involves verifying public information about a property, such as outstanding liens or claims that could impact a sale. François Arbour, one of the co-founders, noted the immediate interest from notaries when the service was introduced. "When we launched, I think we sent 35 emails to notaries and got 29 positive responses," Arbour shared. "They were like, when can I use this? We saw it was a real pain point."
The platform, currently available only in French, is offered on a per-search basis to both small and large notary firms. Arbour mentioned that advancements in AI have now made it feasible to analyze even old handwritten documents effectively, marking a significant step forward from models available just a year ago.
Addressing Notary Shortages
The introduction of Paraito's AI-driven solution comes at a crucial time for Québec, where notaries are in short supply. Increased real estate transactions and a wave of retirements have led to a backlog, with many clients waiting months for notary consultations. By automating the title search process, Paraito aims to alleviate some of this pressure, allowing notary firms to process transactions more efficiently.
Strategic Use of Funds
The $2.65 million raised will be used to further develop Paraito's AI capabilities and expand its reach within Québec's real estate market. While specific details on hiring or geographic expansion were not disclosed, the funding will likely support technological enhancements and potentially broaden the platform's language offerings in the future.
Support from Notable Investors
The pre-seed funding round was led by Inovia Capital, a prominent venture capital firm known for backing innovative tech startups. Boreal Ventures also participated, alongside personal investments from friends and family, highlighting the confidence in Paraito's potential to transform the notary industry in Québec.
Paraito's innovative approach to simplifying real estate transactions through AI not only addresses an immediate need for notaries but also positions the company for potential growth as it looks to expand its services across Canada.