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What Matterport does is they provide a platform to bake really impressive 3D maps of the inside of buildings, virtual tour technology think of, things like that. They are the company behind the software for that. They have over 250,000 customers in 150 countries around the world. So this is not necessarily an early-stage company. They've been around for 10 years now. They have over 10 billion square feet in their library of space that they've mapped already. They're not new at this. They use a software-as-a-service model, also, meaning that they sell subscriptions, their recurring revenue model. They've been around for 10 years; 2020 just kind of catapulted them into the next level.
Think of what happened when 2020 started. We all know that there was the COVID pandemic, and everyone was staying inside, and before March 2020, Jason wouldn't be talking to me from his house. He'd be in the studio talking to me. Everyone stayed inside their house, and the real estate market just kind of went nuts. Not only are mortgages cheaper than they've ever been before, but inventory is scarce, and things like that sort of created this tremendous need for people to be able to see prospective homes to buy without actually going there. That's perfect for a company that can 3D map the inside of a property for virtual tour purposes.
The revenue increased over 500% last year. Don't expect that every year, that was the COVID effect. Remember, there's a subscription model, so if they quintupled their subscriber base in 2020, that's a sustainable boost in revenue. Revenue in 2020 was up 87% year over year. Pretty impressive. The 500% was their subscription based revenue. So currently less than 1% of real estate around the world has a 3D map made of the inside of it, less than 1%. So still a pretty big growth market.
They're going public through the SPAC deal. It's valuing them a little bit more, about double Latch's value. They are valued at about $2.9 billion. That includes $640 million of cash they're getting in the deal. They're getting a $295 million pipe, which is the private investor round, and they're also getting $345 million from the SPAC, the Gores Holding VI that you were talking about.
Couple of impressive statistics that I read. The lifetime value of their subscribers is now over almost 12 times what their cost of acquisition is. That's pretty good economics. So each subscriber they get is bringing in 12 times the amount of revenue throughout the lifetime than it's costing them to acquire. That's some pretty good economics that can really snowball over time, and like I said, the 500% growth in subscribers, just really impressive. Impressive growth, really sustainable. It's really making the use case for this, because having a 3D map version of the building, it opens up your home tours to people who aren't near you even after the pandemic.
I'm trying to think here now, with Gores Holdings VI, I mean this to me indicates that this is their sixth go at it. Are there five other Gores Holding SPACs that have launched to this point?
Frankel:Well, there were five others before this that have taken companies public already. I think there's of Gores Holding seven, and an eight out on the market right now.
Moser:Got you.
Frankel:So six have identified their targets, five have already gone public, and I think there's two pre-deal Gores Holding stacks that are still in the market. There is 3D mapping, the other thing I wanted to mention, and I'm glad I didn't forget this. It's not just 3D home-tour technology. This has implications for design, for construction, for property management. Really, every area of real estate could use a 3D imaging technology inside of the building.
Moser:Yeah, I think you're right.
Frankel:We're having a small addition put on the back of our house next year, and we're working with an architect and they're using a 3D mapping technology, that's one application of their product.<-- ahem nut are they using Matterport I don't think so!!!
It's a huge addressable market opportunity. It's a pretty rich valuation for the company;
