Real Estate Startups Opening the Doors to Technology to Bring itself to ForeFront
The launch of Zavvie, a new Colorado real estate startup, comes during the hottest time ever for the convergence of real estate and technology, which is garnering the attention of major investment dollars. 2016 was a record year for funding real estate tech companies, as measured by both deals and dollars, with private real estate tech startups raising $2.6 billion from more than 235 deals, according to CB Insights. This includes new startups such as Compass ($75 million), SMS Assist ($150 million), OpenDoor ($210 million) and China’s Homelink (raising over $1 billion). It’s the business model of Zavvie that appeals to investors, combined with the fact that a real estate veteran, Lane Hornung, is at the helm.
Nested, a U.K.-based startup, which currently operates in London zip codes only, recently scored a funding of £8 million ($9.88 million) in a round led by Passion Capital. After just a few months in operation, Nested has reportedly started seeing its popularity grow with consumers. It has built a platform that boasts the ability to allow homeowners to sell properties at a fair price within 90 days and offer a guarantee to its users that it will be able to sell their property within 90 days for between 95 to 98 percent of its market value.
RealConnex, a platform connecting real estate pros with projects and each other, raises $3.5 million
RealConnex, founded by Roy Abrams, is described as “Match.com meets LinkedIn for the real estate professional.” The company says it now has a community of 65,000 active users; a database of 200,000 companies, individuals and funds; and that it currently lists 9000 investment opportunities across by connecting people who work on real estate projects before they’re listed and once they’re in full swing. It offers a platform which features activities, reports, and rooms where all parties involved in a project can collaborate online.
As the real estate industry’s profits surged amid a yearlong market boom, executives were more willing to spend on products like virtual space tours or property databases. But now that the market is no longer on the upswing, are leaner times ahead for tech startups? Not really, read how Panelists at TRData launch event see a “paradigm shift” in industry.
Cofounder and CEO of rental platform Goodlord wants to make it, “as easy to rent a home as it is to make online payments with PayPal.” Goodlord’s software-as-a-service is designed to support all stakeholders, including traditional high-street letting agents, as well as landlords, and of course, tenants. It enables agents to digitize the moving-in process, including utilizing e-signatures and collecting rental payments online for which it has raised £7.2M from Rocket’s Internet’s GFC, LocalGlobe and Ribbit.
TripleMint describes itself as a tech-driven brokerage. It has 50 agents based out of its Midtown office but Walker said over two-thirds of its deals last year were generated through the firm’s website. The company has raised $4.5 million in a Series A round led by DN capital, a Menlo Park based venture-capital firm which backed Purpelbricks that went public. The company will use the money to invest in its tech, data and analytics offerings to launch several new tech products both internally and for consumers.