Perch
About the Company
Perch is a real estate tech company serving Canadians in all provinces. It provides an analytics platform to assist users with home buying, mortgage renewals, and refinancing. Perch's services are designed to make real estate decisions easier and empower users to grow their wealth. The platform’s tools include mortgage pre-approval within an hour and real-time equity insights for homeowners.
The company’s technology enables users to streamline their mortgage processes online. Its personalized approach caters to first-time homebuyers and seasoned homeowners, offering guidance on property affordability and opportunities to save on mortgages. Perch also automatically monitors the mortgage market to notify homeowners of cost-saving opportunities.
The platform boasts an average user savings of $1,500 annually on mortgages compared to traditional banks. Perch's success includes raising $1 million in seed funding and joining the 2022 REACH Canada accelerator program.
Idea Behind Company
Alex’s background in finance exposed inefficiencies in the real estate and mortgage sectors, such as reliance on paperwork and lack of transparent information for customers. He identified a need for a solution that combined automation with personalized advice.
The Canadian housing market’s challenges, such as affordability issues and retirees relying on home equity, further inspired Alex. Determined to address these issues holistically, he founded Perch in 2018. Early efforts included a fully automated mortgage comparison tool, which evolved after realizing users wanted a balance between automation and human advice.
Perch’s hybrid model combines proprietary analytics with dedicated advisors, offering a more informed and confident homeownership journey. Alex sought feedback from friends and strangers to refine his ideas and address pain points effectively.
Creating the Company
Alex initially invested $20,000 to create a minimum viable product (MVP), focusing on functionality over design. Early prototypes underwent extensive user testing, gathering feedback from a network of acquaintances and random testers in public spaces.
After refining the product, Alex invested an additional $30,000 to improve design and user experience. This iteration introduced a more polished MVP, which received positive validation from targeted users in the tech community. Feedback-driven iterations became central to Perch’s development process.
To further improve the platform, Alex sought out discounted services through innovation centers like MaRS and Communitech. These resources helped offset costs while maintaining focus on delivering a robust and user-friendly product.
Launching the Business
Perch launched in September 2018 with an initial investment of $55,000, covering legal fees, MVP development, and operational expenses. The company utilized grants, loans, and Alex’s personal savings to fund its early stages. Early customer acquisition strategies focused on paid channels and aggressive pricing to attract users.
User feedback was pivotal during the launch, enabling rapid improvements in the product. Perch maintained a steady flow of traffic to control testing and avoid overwhelming the small team. Ensuring direct communication with users through visible contact information helped build trust and gather insights.
Initial operations involved a lean team of three, including Alex, an engineer, and a designer. The launch phase emphasized balancing product development with customer engagement, ensuring growth was manageable and sustainable.
Earnings
Perch generates $960K in annual revenue, primarily through organic growth and a strong referral network. The company has achieved an average annual revenue growth of 226% since inception and boasts high customer satisfaction, as evidenced by a 174% referral rate.
Revenue streams include commission-based earnings from mortgage deals facilitated through its platform. Perch also incentivizes referrals by offering bonuses to users and real estate agents, fostering a loyal customer base.
Looking ahead, Perch plans to expand its operations by leveraging $1 million in seed funding. Goals include enhancing the platform, increasing user growth, and building strategic partnerships to solidify its position in the proptech industry.
