America’s universities operate billions of square feet of real estate, but are struggling to make the best use of their space in an era where higher education is delivered differently. Degree Analytics, a start-up based in Austin, Texas, believes it can help. And the company, which is today announcing it has raised $5 million of new funding, is already working with more than 50 universities across the US.
“Universities are effectively small cities,” says Aaron Benz, founder and CEO of Degree Analytics. “They’ve got so much space to manage, and our role is to help give them visibility and understanding of how it is currently being used, so that they can make smarter decisions.”
As universities have grown in recent decades, they’ve invested in new facilities and buildings, but the Covid-19 pandemic led to dramatic shifts, Benz points out. Many students are now hybrid learners – taking some classes online from remote locations and attending others in person. Staff are also working differently – sometimes from home and sometimes on-campus.
These changes make it much harder for universities to manage their space. The fact that a certain number of students are enrolled in your classes, for example, doesn’t tell you how much space you’ll need each day to deliver lectures and seminars. The fact that staff have booked office space doesn’t mean they’ll actually use it.
This causes significant problems. Many universities are spending far more on buildings maintenance and energy costs than they actually need to – or even investing in additional space that they won’t fully utilise. Students find themselves in semi-deserted buildings that aren’t conducive to collaborative and exciting learning experiences. “We want our universities to have some life in them,” Benz says.
Degree Analytics’ technology therefore aims to give universities a real-time read-out of how their space is being used. “We can tell them who is actually in their space as opposed to who they theoretically think is there,” adds Benz.
To deliver that information, Degree Analytics uses universities existing wifi networks, measuring how many devices are logging on at a given time in each part of the network. It can also supplement this data by installing physical sensors in locations where there are gaps in the information.
The business case for universities to invest in such technology is strong. For example, they can lease the space they need rather than over-providing – one university Degree Analytics works with decided not to sign a $3 million lease after reviewing the data. They can reduce energy bills by heating and lighting buildings only when necessary – Benz thinks most universities are spending 20% to 50% more than they really need to on energy costs.
The company’s data also enables universities to make smarter decisions about new facilities and to review the success or otherwise of such projects. Universities want to create spaces outside of classrooms and lecture halls to encourage students to work together and to socialise, but they need to know what type of facility works best for such goals.
The business appears to be in the right place at the right time, given the way campus life is changing. Launched in 2017, Degree Analytics initially focused on technology solutions aimed at helping students to succeed. Two years ago, however, it pivoted to its current focus on property and facilities management and has seen rapid growth since then.
Indeed, the company reports revenues that are up 3.5 times on two years ago, with more universities coming on board. Testimonials from customers such as the University of Kentucky help.
“Degree Analytics doesn’t just provide data – it guides us in translating it into real-world impact,” says Erik Jarvis, the university’s smart campus lead. “With their help, we’ve shifted from abstract discussions to actionable insights that improve everyday campus life.”
Investors are also taking a keen interest in the business. Today’s $5 million round is led by LiveOak Ventures where founding partner Krishna Srinivasan points to the need to support universities struggling on tight budgets.
“Degree Analytics has created a truly innovative platform that addresses one of higher education’s most pressing challenges – how to do more with less in a dynamic but increasingly constrained environment,” he says.
The business will use the funding to invest further in its technology, enabling it to offer richer data and analysis to universities as it continues to expand. Benz adds: “Our platform clarifies the complexities of campus space utilisation, allowing leaders to make informed decisions that reduce costs, improve sustainability, and enrich the student experience.”
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