In comparison to 2012, 2017 saw more than ten times growth regarding total investments at the pre-IPO stage in real estate tech companies.

HONG KONG SAR, January 27, 2018 /EINPresswire.com/ -- In this study Inhab, a Real Estate Tech (PropTech) Accelerator and YoStartups have come up with a detailed report on the performance of the Real Estate Tech companies and Top 50 Real Estate Tech Startups To Watch Out For In 2018.

The US$ 200 Trillion Industry Is Waking Up to Technology

Real Estate has historically garnered the highest allocation of investments and is valued at over US$ 200 trillion in assets. The quantum of investments and high margins has led to heavy inertia and the real estate industry has seen the least utilization of technology. This gap has created a humongous opportunity for the new age technology companies, mainly due to the sudden urge to fill the technology gap to drive efficiency and effectiveness.

The industry is dotted with inefficiency and a few institutions control the technology or innovation. With the changes in the regulations and market dynamics, the shareholders are demanding more transparent and efficient organizations, and the Real Estate Tech (PropTech) startups are taking up the opportunity very well.

Broadly we can categorize the innovation in the Real Estate Tech (PropTech) industry in four big buckets.

- Real Estate Fintech, that includes applications and platforms facilitating financial transactions for the real estate related products and services, including lending, brokerage, wealth management, etc.;

- Real Estate Shared Economy, that includes co-working and co-living businesses where an asset has been shared to get high efficiency from the assets;

- Smart Building Technology, which includes IOT, Augmented & Virtual Reality based companies, analytics for energy saving, etc.

- Construction Technology that includes tools to improvise project management, 3D printing, and innovative construction materials.

Investment Trend in the Real Estate Tech (PropTech) Industry

Investments in the Real Estate Tech or PropTech companies have seen a steady rise over the last five years, signaling continued interest in this yet to be transformed industry, it is said to be the one of the most promising industry for investors

In comparison to 2012, 2017 saw more than 11 times growth in terms of total investments at a pre-IPO stage in Real Estate companies. Over last two years, we are seeing more than 70% year-on-year growth in total investments.

WeWork, a US-based company which is a platform for creators that transforms buildings into dynamic work environments for higher creativity and collaboration, emerges as a leading company from the industry with close to $10 billion in total funding till date. WeWork has raised the highest investment round in 2012 ($150 million), 2014 ($355 million), 2015 ($434 million) and 2017 ($4.4 billion). Softbank has been a leading investor in the company with a total exposure of over $7.4 billion in WeWork. In 2016, the UK based Real Estate Company, Global Switch, displaced We Work. It raised close to $3 billion in 2016 in a private equity round that year.

Number of Investment Rounds in Real Estate Tech/ PropTech Have Fallen in 2017

Though the investment corpus is going up year after year, there is a perceptible drop in the number of investment rounds in 2017. In the years, 2014, 2015 and 2016, the number of investment rounds hovered around 700, the number of investment rounds dropped to 519 in 2017. The drop in the number of investment rounds is also matched with a 17% decrease in the share of investments at the seed stage in the year 2017.

The saving grace was the heightened interest from the investment funds for Series A and subsequent rounds for Real Estate Tech (PropTech) players. This signifies that the market is ready to bet big dollars on ideas that have found product-market fit; just an idea or concept is no longer palatable.

164 Companies That Were Founded After 2008 Have Raised More Than US$ 10 million in Investments

We studied the investment trends from the top Real Estate companies globally that are founded during or after the year 2008 and have raised $10,000,000(Ten million US$) in total funding till 31st Dec 2017.

Based on this criterion, we identified 164 Real Estate companies from the data at Crunchbase. Out of these 164 companies, other companies acquired 7 companies, 11 reached the IPO stage and remaining companies are operating as private holding companies. This does signal that the consolidation phase is yet to arrive in the industry.

More than 50% of these companies have raised more than $25 million in total investments, and almost 18% companies have raised over $100 million in investments.

Figures around number of investment rounds also remain healthy for the Real Estate Tech (PropTech) industry

· 64% of the companies were able to raise 3 or more rounds of investment; and

· 6% of the companies were able to raise more than 8 rounds of investments.

The United States of America is Heaven for Real Estate Tech (PropTech) players

In terms of countries, The USA leads the industry with 92 (out of 164) companies in the list, and they have raised more than $15.5 billion in total investments. Other countries after the USA that are leading the Real Estate Tech (PropTech) industry are China, UK and India with 15, 15 and 9 companies respectively.

Although the USA leads the industry both with the number of startups and total investments, it is China, which leads the industry with highest average funding per round of investment of $71.6 million against $45.5 million for the USA and $23.3 million for India. This does signal that the dragon is all set to become the leading market for Real Estate Tech (PropTech) players.

The Top 50 Real Estate Tech (PropTech) Players to Watch out for in 2018

From the cohort of 164 Real Estate Companies, we selected top-50 companies based on their relevance, technology, and their Crunchbase ranking.

86% of the Real Estate Tech (PropTech) companies featuring in our top-50 list are founded in or after the year 2011, which shows that post 2010 there was a clear shift in the adoption of technology by the industry.

As mentioned earlier, Real Estate is the largest asset class globally and it’s no wonder that

· 50% (25 companies) of the companies in top-50 have raised over $50 million in total funding.

· 25 %(12 companies) of the top 50 companies in the Real Estate Tech (PropTech) segment have raised more than $100 million in total funding.

· 84% of the companies have raised 3 or more investment rounds

Over here as well, USA leads the list with 38 companies in top-50 and distantly followed by the UK with 4 companies and India with 2 companies.

Segment Wise Details of The Top 50 Real Estate Tech (PropTech) Players to Watch out for in 2018

To highlight the emerging technology trends in the Real Estate industry we have further divided the top-50 companies into different segments based on their core functions; Architecture, Construction & Design, Big Data/Analytics, Investments, Marketplace, SaaS, Shared Economy and Smart City.

Startups from different segments in the Top 50 Real Estate Tech Startups To Watch Out For In 2018

Real Estate Marketplace --- 20 companies

Real Estate Investments & Lending - 7 companies

Real Estate Shared Economy --- 7 companies

Real Estate SaaS --- 6 companies

Real Estate Big Data & Analytics --- 5 companies

Real Estate Smart City/IOT --- 4 companies

Real Estate Insurance Tech --- 1 company

“Real Estate Technology is on the brink of another phase that will be another giant leap akin to what was witnessed when the Internet first came to life for the public. In the next decade the industry will go through metamorphosis”, says Abhishek Singh, COO of Yostartups, a global startup pre-accelerator.

Real Estate Marketplace Startups

The segment has been the darling of the industry and represents 20 companies in the top-50 list. These marketplaces have not only empowered the end users to make better-informed decisions on the available real estate properties, but also helped the property agents to expand their portfolio. Companies in the segment include Apartment List, Roomi, Opendoor, LendingHome, RealtyShares, Zumper, Reali, HomeLight, Roofstock, Knock, and OfferPad from the US. Xiaozhu debuts from China. Nested, Appear Here and YOPA come from the UK. India too makes to the list with PropTiger and NestAway. Brazil gets a seat in the Top 50 list with VivaReal. Singapore secures a spot with 99.co and Spotahome from Spain makes to the list too.

Real Estate Investments & Lending Startups

The segment includes companies, which does or facilitates investments in real estate assets. Owing to the solid growth in the asset class, the segment will remain strong in the coming years. LendInvest from the UK leads the segment with other companies to feature in the list are Cadre, Fundrise, PeerStreet, RealtyMogul, loanDepot, and Clara, from the US.

Real Estate Shared Economy Startups

The segment includes companies on the concepts of shared living and working spaces. The segment is led by the industry leader WeWork, followed by Bond Collective, Knotel, Liquid Space, Common and Pillow from the US and Breather from Canada. There is a lot of action in this space as the nature of work and its definition is changing, with the rise of the millennial generation, the old-fashioned workspaces are loosing sheen and demand. This segment is all set to disrupt the commercial real estate market globally. This is one of the most promising segments globally.

Real Estate SaaS Startups

The segment includes companies that provide software or application for streamlining project or facility management, marketing & lead generation. Companies to feature in the list from the segment are VTS, Mynd, Honest Buildings, Placester, Cozy and OrderWithMe, all six are from the US.

Real Estate Big Data & Analytics Startups

The segment includes companies, which provide deep insights into the real estate markets with the help of their data repository and analytics. The companies from the segment that are more like to lead the segment in the coming years are Compass, HouseCanary, SmartZip, CompStak, and Reonomy; all the players are from the US.

Real Estate Smart City/IOT Startups

The segment includes companies working on platforms or technologies to make smart homes or offices. Companies from the segment to feature in top-50 include Flo Technologies, Enlighted, and Comfy, all from the US. In addition to these Tado from Germany, makes it to the Top50 list.

Real Estate Insurance Tech

Insurance Tech make a debut to the top 50 list, with the US-based company – TheGuarantors. Their rental lease guarantee opens doors to renters and eliminates the risk of default for landlords. Unlike other rental income insurance, the TheGuarantors policy is paid by the prospective renter and covers tenant default during the whole length of the lease.

“The expansion and adoption of new, innovative technologies is becoming an integral part of the real estate process, opening a big opportunity for entrepreneurs to build products and services using blockchain and artificial intelligence stacks”, says Jappreet Sethi CEO of Yostartups, a global startup pre-accelerator.

The real estate tech industry is at the forefront of a mega revolution, the real estate industry has over 200 trillion US dollars in assets, and technology can transform this industry to unlock tremendous value. The technological disruption that is happening in the real estate sector will change the real estate industry, as we know it now. We at Inhab accelerate early stage PropTech startups through our unique and proprietary acceleration program, if you are looking to be a part of this multi-trillion dollar industry, please do visit our website – inhab.xyz and submit your application for our next batch of startups.

Companies in the Top 50 Real Estate Tech Startups To Watch Out For In 2018

Ranking Organization Name Weblink

1. WeWork www.wework.com
2. Apartment List www.apartmentlist.com
3. Roomi www.roomiapp.com
4. LendInvest www.lendinvest.com
5. Compass www.compass.com
6. Flo Technologies www.meetflo.com
7. Opendoor www.opendoor.com
8. LendingHome www.lendinghome.com
9. RealtyShares www.realtyshares.com
10. HouseCanary, Inc. www.housecanary.com
11. Bond Collective www.bondcollective.com
12. Nested www.nested.com
13. Zumper www.zumper.com
14. Knotel www.knotel.com
15. Cadre www.cadre.com
16. Reali www.reali.com
17. TheGuarantors www.theguarantors.com
18. LiquidSpace www.liquidspace.com
19. HomeLight www.homelight.com
20. Common www.common.com
21. Xiaozhu.com www.xiaozhu.com
22. Roofstock www.roofstock.com
23. Fundrise www.fundrise.com
24. VTS www.vts.com
25. Knock www.knock.com
26. tado° www.tado.com
27. Mynd www.mynd.co
28. Honest Buildings www.honestbuildings.com
29. 99.co www.99.co
30. PeerStreet www.peerstreet.com
31. Appear Here www.appearhere.co.uk
32. OfferPad www.offerpad.com
33. PropTiger www.proptiger.com
34. Placester www.placester.com
35. Spotahome www.spotahome.com
36. NestAway www.nestaway.com
37. Breather www.breather.com
38. SmartZip www.smartzip.com
39. RealtyMogul.com www.realtymogul.com
40. CompStak www.compstak.com
41. Pillow www.pillow.com
42. Cozy www.cozy.co
43. loanDepot www.loandepot.com
44. OrderWithMe www.with.me
45. Clara Lending www.clara.com
46. Reonomy www.reonomy.com
47. Enlighted www.enlightedinc.com
48. Comfy www.comfyapp.com
49. YOPA www.yopa.co.uk
50. VivaReal www.vivareal.com.br

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About Inhab

Inhab accelerator is a global real estate tech accelerator based in Hong Kong. We accelerate and invest in early-stage companies innovating at the intersection of Real Estate and Technology. We select six companies for every cohort for a six-month program.

About Yostartups

YoStartups is a Pre Accelerator and it empowers entrepreneurs to propel their business ideas into successful ventures. Yostartups’ core mission is to take the message of entrepreneurship to 1 billion people globally by 2020, as on date Yostartups reaches out to over 100 million people globally through its direct and indirect channels.

______________________________

For more information on this research please contact

Jappreet Sethi
CEO - YoStartups

Email: j(at)yostartups(dot)com
web: https://www.yostartups.com
FB: http://www.facebook.com/yoStartups
twitter: http://www.twitter.com/YoStartups
Instagram: http://www.instagram.com/YoStartups

______________________________

Jappreet Sethi
Inhab
+91 9910 012370
email us here

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