Parcel Perfect Data

“Built in Detroit” has traditionally conjured images of muscle cars and blonde rappers, not innovative data companies. Regrid stands out as a testament to the power of conviction and mission in building tech companies in non-traditional markets. Founded in 2009 in Detroit, Michigan, Regrid has independently grown from a small startup focused on mapping distressed properties to a national leader in property data services – specifically leading the parcel data category of spatial property boundaries with ownership, zoning, buildings, addresses, and other attributes.

From Virtual Worlds to Real-World Parcels

Jerry Paffendorf, co-founder and CEO of Regrid, brings a unique perspective to the world of property data. With a background in virtual worlds and futurism, Paffendorf's journey to Detroit was driven both by an interest in putting the physical world online, and a desire to challenge the notion that innovative tech companies could only thrive in coastal hubs.

"I had been feeling a little frustrated that if the network that is the internet is supposed to connect people across space and time seamlessly... Why was it so important to be in one of two places?" Paffendorf explains. This curiosity, combined with Detroit's unique property landscape, led to the creation of what would become Regrid.

The Power of Community-Driven Innovation

Regrid's early days were marked by deep community engagement. The team's initial project, which allowed people to purchase square inches of vacant lots, quickly evolved into a comprehensive mapping system for Detroit's properties. This grassroots approach provided invaluable insights into the real-world applications of parcel data.

"We spent a lot of time sitting down with people understanding their problems, helping people keep their houses out of foreclosure, and really learning from the inside out with our whole bodies how important parcel information is to people," Paffendorf recalls. This hands-on experience shaped Regrid's understanding of the diverse stakeholders interested in property data, from community groups to city planners to service providers and businesses.

Embracing the Data-as-a-Service Model

As Regrid expanded its coverage beyond Detroit, the company experienced a pivotal shift in its business model. Initially focused on professional services and custom mapping projects, Regrid encountered a growing demand for it to deliver raw parcel data outside of its software. This transition to a data-as-a-service model allowed the company to simplify its software and focus on building the best possible national parcel dataset and delivery mechanisms while serving a wider range of customers.

The diversity of Regrid's client base underscores the fundamental importance of parcel data across industries. While real estate and PropTech companies are natural customers, Regrid's data also serves sectors such as renewable energy, telecom, logistics, agriculture, and land conservation, to name a few. This broad applicability highlights the critical role that accurate, comprehensive property data plays in numerous aspects of our economy and society.

“Over time we learned that parcel data is the foundation of every location decision that many organizations make,” said Paffendorf. 

Building in Non-Traditional Markets: Challenges and Opportunities

Regrid's success challenges the notion that tech startups must be built in traditional tech hubs. Paffendorf emphasizes the benefits of being rooted in a community, allowing for a deeper understanding of real-world problems and innovative solutions.

However, this approach is not without its challenges. Building outside of traditional tech ecosystems often means slower growth and less access to capital. Yet, it also allows for greater independence and the ability to tackle complex, long-term problems that might not fit neatly into the typical startup trajectory.

By sticking with its mission, Regrid was able to complete the first ever 100% parcel coverage map of the United States, and recently began offering Canadian parcels. They routinely license their data to some of the largest companies in the world while continuing to serve a growing consumer audience with their app. They have also earned the distinction of becoming Esri’s commercial partner for parcel data, which Paffendorf and team are proud of.

“There aren’t that many sizable, independent businesses with long term missions — especially in tech — and I find myself frequently looking to Esri and Patagonia as examples for us to learn from,” he says. 

The Importance of Physical Ownership Data in a Digital World

In an increasingly digital world, Regrid's focus on physical property data might seem counterintuitive. However, Paffendorf argues that understanding who owns and controls land, what it’s comprised of, and how it is used all remain crucial for transparency and community empowerment on one level, and for making effective business and planning decisions on another.

"I sometimes jump to what would the world look like if you couldn't see who the owner of property was? And I don't think that's a very pretty scenario actually, because you can never tell who actually has control of your community," he explains. “Parcels are required in so many different property lookup, site selection, and area analysis use-cases, that there’s a diverse and widespread need to know parcels from top to bottom. They really are the bedrock of human geography.”

This perspective highlights the ongoing importance of accessible, accurate property data in maintaining social and economic transparency.

Navigating Privacy Concerns in the Age of Data

While property ownership is well established as being public record in the United States, Regrid is conscious of navigating privacy concerns, especially as they enter more countries. Paffendorf emphasizes their focus on property and geographic data rather than personal information, noting that they’re careful to comply with privacy laws and, beyond that, they want people to genuinely appreciate and welcome the level of transparency Regrid brings.

Even though Regrid focuses on property and physical space, their awareness of privacy concerns reflects a broader challenge facing data-driven companies: balancing the public interest in transparency with individual privacy rights. As data becomes increasingly interlinked and powerful, companies like Regrid play a crucial role in setting standards for responsible data management.

Looking to the Future

As Regrid continues to expand its coverage and refine its data offerings, the company's journey offers valuable lessons for entrepreneurs and policymakers alike. It demonstrates the potential for tech innovation to thrive outside of traditional hubs, the enduring importance of physical property data, and the opportunity to start small, follow a mission, stay independent, and scale up from there.

Moreover, Regrid's story underscores the value of building technology companies that are deeply connected to the communities they serve. By maintaining this connection, tech companies can develop solutions that address real-world problems and contribute to the public good, even as they navigate the challenges of growth and technological change.