Real estate tech have evolved from its initial phase of software and marketplaces complementing the incumbents to a new era where tech enabled players are going head to head against the sector’s largest incumbents (hotels, commercial landlords, and brokerages) and consuming massive amounts of investor capital as they scale. However, this new phase will likely include companies that leverage sensors and virtual reality to create smarter spaces, machine learning to standardize and draw insights from industry data platforms to more efficiently manage transaction services as well as to design, manage and outfit physical spaces.
Real estate research and data startup Reonomy has raised $16 million in its latest funding round. By aggregating and analyzing hundreds of public databases, Reonomy aims to put together a detailed tapestry of a property or holding company that includes zoning information, sales data, debt history and contact information. That’s the kind of intel that can make or break an investment.
Homie aims generate revenue by acting as a broker between renters and real-estate agents. Its customers are mostly first time renters who don’t understand the real estate market or need to find a solution that best fits their budget. Essentially, Homie wants to help young professionals who have limited time to go house hunting, and millennial expats who need help figuring out the best place to live and navigate the market for the best value homes.
Honest Buildings, one of several high-profile tech startups determined to revolutionize the city’s ultra conservative real estate industry has raised $21 million in its second round of venture capital investment. It provides a cloud-based enterprise computing platform that allows landlords to track repair projects and vendors across an entire portfolio of properties and cut costs. By aggregating data across properties it wants to improve transparency as previously, owners typically used a series of spreadsheets to monitor that work and rarely were able to see what was happening at all their buildings in real time.
Real estate franchisor Re/Max has acquired tech startup Booj which develops end-to-end technology including websites, mobile apps, predictive analytics and lead generation systems for the real estate industry. The acquisition is part of a push by Re/Max to center technology in its business. By bringing on Booj, the franchisor hopes to boast a stronger technology focus in-house instead of just adapting their-party and vendor products for agents.
Approximately US $6 billion in venture capital has been invested globally in Proptech since 2011 and about 70 percent was in the last two years. PropTech which refers to businesses using technology to disrupt and improve the way we buy, rent, sell, design, construct and manage residential and commercial property is an area to watch and one to get excited about in 2018