New York real estate news site The Real Deal, has reported in October of money pouring in for the makers of disruptive real estate technology. In a blog article titled “Real estate tech to get $1.4B in 2015, but is “bloodbath” ahead?“, The Real Deal discusses startup investment being up $1B from 2014 and $438M from 2013.
The Real Deal proposes that investors will lay down a $1.4b investing in RE Tech startups in 2015 (up $1b from 2014), a staggering 350% increase.
With many analysts proposing the industry is at the tipping point for change, will the investment continue post 2015, or are we on the tail of the investment curve?
Here is the article [source: www.therealdeal.com]:
“Money is pouring in for the makers of disruptive real estate technology, but many favored companies may not be around long enough to collect it.
Investors will lay down an impressive $1.4 billion in investment on tech startups in the sector this year, up from $1 billion last year and $438 million in 2013, according to data from CB Insights.
The numbers, along with dire warnings from top players, were presented at a conference last week hosted by Rubicon Venture Capital. Panelists there stressed both the opportunities and the many difficulties for firms, many of whom are based in New York.“It’s pretty easy to get a meeting if you are disrupting something in real estate,” said Richard Sarkis, CEO of Reonomy, at a panel.
Despite the existence of companies like short term rental service Airbnb, co-working startup WeWork, and crowdfunding sites like Fundrise, the real estate industry has, in general, been comparatively slow to adopt new technologies. Many previous aspirants have crashed and burned, and the same is likely to happen again, when the market turns down, panelists said, according to the Wall Street Journal.
“It’s going to be a bloodbath,” said Floored CEO Dave Eisenberg, who said it’s not always easy to get customers to appreciate the benefits of new technology.
Floored introduced a new product last month, Protofit, that allows landlords to draw their own commercial test fits, an alternative relying on architecture firms. WeWork, valued at $10 billion, recently resolved a four-month dispute with the 32BJ SEIU service workers union, who accused the company of underpaying its workers. Compass recently caused a flap in the Hamptons brokerage world when they poached Ed Reale, former of sales manager at Brown Harris Stevens, to lead Compass’s Hamptons office. [WSJ] – Ariel Stulberg ”
Read more at www.therealdeal.com
