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Grotto AI has raised $10 million in seed funding from ICONIQ to tackle the $500 billion vacancy crisis in real estate. The New York-based startup focuses on improving human conversations in leasing rather than increasing automation.

Grotto AI's system is operational with major clients, including Weidner Apartment Homes, which oversees 70,000 units. Founders Nick Deveau and Ben Epstein previously worked at EvolutionIQ, where they contributed to a $730 million acquisition.

Their research indicates that interpersonal interactions, such as laughter and curiosity, significantly enhance conversion rates in leasing. Grotto AI aims to refine leasing teams' effectiveness without replacing them.