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Proptech Spotlight: ButterflyMX

ButterflyMX is a commercial smart access control system that I’m considering for my latest condo conversion project. Covid accelerated the need for smarter access controls by a few years, so it’s an area of proptech where (for once!) adoption is happening relatively quickly. And if you look at the incumbent technology, this should’ve been an easy choice a long time ago.

ButterflyMX Founding & Fundraising

ButterflyMX was founded by Cyrus Claffey 8 years ago. After leaving a career in banking, he ended up in real estate technology consulting. He noticed that there was a glaring opportunity to connect the power of smartphones to the stupidity of existing intercoms. He also got annoyed that he kept missing package deliveries when he wasn’t home.

Since its founding, ButterflyMX has become pretty well established. It’s in 7,000 buildings and 600,000 apartments, including some major institutional landlords. And that growth is about to accelerate with a recent injection of a $50m series D round led by JMI Equity.

ButterflyMX Features

Their flagship product is the intercom, which can be used for both multifamily and office buildings and serve as a package room access panel. It comes in four varieties:

  • 7” surface mounted, $3995
  • 7” recessed for $4495
  • 11.6” surface mounted for $5995
  • 11.6” recessed for $6495

This may sound pricey compared to other intercoms, but the install makes up for it. Because you only need hardware at the entry points and not in every unit. There’s just two hookups. One wire for the door strike, and a network cable that also provides power. So a basic surface mounted wiring should be just a few hundred bucks. It can get more expensive if the site conditions need some adjusting. Like cutting into concrete to recess the panel and run the ethernet wire. But overall, expect savings in your electrical budget vs traditional intercoms.

The features are really where it blows away traditional intercoms. There’s a built-in screen and camera for 2 way video calling, and you can search for people in the directory. And when visitors call a user, the intercom connects directly to users’ phones via the app, so users can grant access from anywhere.

Access Methods

There are 3 access methods. The first is through the app. So no matter where you are, you can use your phone to “swipe to open” the door whether it’s for yourself or a visitor.

The second is delivery pins. These are ideal for visitors you don’t actually know, but you need to grant them access. Like if you order something, you generate a unique delivery pin and put it in the delivery instructions.

The third method is virtual keys, which are meant for recurring visitors that you do know. You send a QR code to the visitor, and you can schedule specific access times and be notified on the app when they use their keys.

The Keypad

Aside from the intercom, ButterflyMX also offers a keypad for $495. It’s meant for less trafficked areas where there aren’t any unknown visitors, like amenity and utility rooms. You can also pair the keypad with a key locker for lockouts or self guided tours, which are increasingly common post covid. And they also offer a networked relay board to integrate key fob elevator access to the system.

Speaking of integrations, the app currently works with a number of 3rd party smart lock hardware, like Salto and Schlage. RemoteLock integration is in the works, which will ‘unlock’ a lot more 3rd party hardware compatibility. And there’s a ton of software integrations like yardi, appfolio, airbnb, siri, alexa, and more.

Software pricing

Which leads me to the software pricing. ButterflyMX prices the ongoing subscription on a per UNIT basis. They quoted me with a run down on the following scenarios:

It starts around $1,000 per year for up to 25 units. If you have more than 25 units, it costs $2.50/month or $30/year per unit. Depending on which add on features you want, it can go up to $3.50/month or $42/year per unit.

So for example if your building has 100 units, the annual software subscription will be between $3,000 and $4,200.

If you’re considering smart access systems for the first time, you may be a little shocked that there’s a recurring cost. But it tends to pay for itself by reducing costs of sharing physical keys, managing lockouts, and reducing package theft.

So definitely consider ButterflyMX if you run any medium to large multifamily or office building. I’m personally looking forward to seeing how they evolve their products with this latest round of funding.