2015 RE:Tech Annual Report FUTURES REPORTstatic1.squarespace.com/static/516c687de4b00f416237be7e/t/55c1206… · 2015 RE:Tech Annual Report FUTURES REPORT ... Cloud technology is

RE:Tech Futures Report ………………………………………………………………………………………………………

2015 RE:Tech Annual Report

FUTURES REPORT

Emerging Trends in Real Estate Tech


RE:Tech Reports & Analysis

In 2014, RE:Tech conducted a Real Estate Technology analysis on Internet and Software based real estate technology companies.

RE:Tech’s goal is to explore how real estate technology (“real estate tech”) companies are impacting the real estate industry. The 2015 RE:Tech Futures Report looks at trends, key findings and future trends in the real estate and real estate tech industry.

What is Real Estate Tech?

Real Estate Tech and Commercial Real Estate Tech, can broadly be defined as real estate technology products and/or services which generate, improve, or enhance operational performance, productivity, or efficiency.


Real Estate Overview Positive financial factors and job growth in robust urban

cities indicate a strong real estate economy. As cities

become larger, younger, and more dynamic, the real

estate ecosystem will continue to flourish while

showing signs of stabilization in 2015. Real estate

prices are close to its 2007 peak in major metropolitan

markets and transaction activity has improved in

secondary markets. The multifamily-rental and office

markets will remain strong, while simultaneously the

frothy real estate investment valuations seen in 2014

will begin to subside with signs of market stabilization

in 2015.

The Intersection between Real Estate & Tech The real estate industry has reached a pivotal

intersection between real estate and tech. Technology

has touched nearly every aspect of the real estate

industry. Real estate technology is not a fad or a trend.

Technologies long-term impact on real estate is

inevitable. However, since the second wave of real

estate tech, its immediate and growing impact can be

felt at the startup level.

Technologies long-term impact on real estate is inevitable.

“

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The real estate industry is currently going through a once in a generation shift. Competitive advantage will be created and achieved through data and analytics, while business models will be reshaped by cloud and mobile technology. RE:Tech is making a new future for our clients, our industry, and our company.

The RE:Tech Strategy.


01. Achieving a competitive advantage with data. 02. Reshaping real estate with cloud & mobile tech. 03. Trending real estate tech startups. 04. Investing in real estate tech. Venture capital investment activity. 05. The future of real estate tech.


01.The real estate of tomorrow will be built on the foundation of impactful data.


IMPACT AREAS

In Real Estate, Impactful Data will lead to better decision making. In today’s real estate economy, decisions are made based on the face value of qualified and quantified data. The real estate of tomorrow will be built on the foundation of impactful data - unlocking the hidden value of dark data, leading to better and timely decision making. With its increasing volume and variety, data is a vital resource in real estate. Like a real estate investor that sees hidden value in an investment, hidden data, when unlocked, can transform and equip the real estate industry with better and timely decision making.

The Real Estate of the Future will: 01. Drive better decisions and impactful outcomes by applying sophisticated data sets and analytics. 02. Capture the “Time Value of Data” (TVD). Similar to the Time Value of Money, TVD will assist in identifying and developing core differentials. 03. Become an impactful leader and game changer with better decision making tools.


02.Reshaping real estate in the age of mobile tech and the cloud.


IMPACT AREAS

Cloud technology is reshaping the real estate industry. Cloud technology is transforming the real estate industry and business process into a digital service. Service based practices in real estate, like brokerage, are being remade by data and mobile technology. The accessibility of information is transforming the way real estate practitioners conduct day-to-day business activities with cloud computing and cloud technology. As cloud technology becomes more integrated in business, security and privacy will become a hot button subject, but will not be a deterrent in the adoption of cloud technology, due largely in part to accessibility and mobilization of real estate practitioners.

The Real Estate of the Future will: 01. Use cloud technology to increase efficiency with smart phone/mobile technology. 02. Use cloud technology to reinvent core business practices and innovate. 03. Use cloud technology to access and exchange data from anywhere…anytime.


03.Real estate tech startups, creating the new innovative advantage.


Industry Company Location Funding Technology

RRE Cozy Portland, OR $6.5M Saas

RRE Reesio San Francisco, CA $1.3M Saas

CRE Compstak New York, NY $5.6M Saas

CRE, RRE PlanGrid San Francisco, CA $1.1M Saas

CRE, RRE Kisi Brooklyn, NY Undisclosed Haas, Saas

CRE, RRE coUrbanize Cambridge, MA $668.8K Saas

CRE Pivotdesk Boulder, CO $6.6M Saas

CRE, RRE Honest Buildings New York, NY $12.3M Saas

CRE, RRE Floored New York, NY $7.3M Haas, Saas

CRE View The Space (VTS) New York, NY $7.7M Saas

CRE FieldLens New York, NY $8M Saas

CRE Hightower New York, NY $8.6M Saas

Trending Real Estate Tech Startups Companies to watch in 2015 Technology has impacted nearly every aspect of the real estate industry. The future of real estate is paved by innovative thought leaders that aim to solve inefficacies and enhance other.


Cozy HQ: Portland, OR Technology: Saas Industry: Residential Real Estate (RRE) Platform: Cozy is a residential real estate – rental CRM platform that collects rent online, checks tenant credit, and screens tenants. Funding: Series A $5M Seed $1.5M

Reesio HQ: San Francisco, CA Technology: Saas Industry: Residential Real Estate (RRE) Platform: Reesio is an online residential real estate

transaction management platform providing up-to-the minute property data

Funding: Seed $1.1M Seed $205K


CompStak HQ: New York, NY Technology: Saas Industry: Commercial Real Estate (CRE) Platform: CompStak is an online platform of

crowdsourced commercial real estate lease comps from active real estate brokers.

Funding: Series A $4.5M Seed $570K Seed $570K

PlanGrid HQ: San Francisco, CA Technology: Saas Industry: Commercial Real Estate (CRE) Platform: PlanGrid is a cloud-based app that allows

users to store blueprints and construction documents on iPad and iPhone.

Funding: Seed $1.1M


Kisi HQ: Brooklyn, NY Technology: Haas, Saas Industry: Commercial Real Estate (CRE) Residential Real Estate (RRE) Platform: Kisi is a smartphone enabled wireless and

keyless access control. Funding: Seed Undisclosed

coUrbanize HQ: Cambridge, MA Technology: Saas Industry: Commercial Real Estate (CRE) Residential Real Estate (RRE) Platform: coUrbanize is an online platform for

developers to share project information with residents before and during the development process.

Funding: Venture $550.8K

Seed $118K


PivotDesk HQ: Boulder, CO Technology: Saas Industry: Commercial Real Estate (CRE) Platform: PivotDesk is an office-sharing marketplace

for small businesses and startups. Funding: Venture $3.6M

Series A $3M Seed Undisclosed

Honest Buildings HQ: New York, NY Technology: Saas Industry: Commercial Real Estate (CRE) Residential Real Estate (RRE) Platform: Honest Buildings is a web and mobile based

platform connecting real estate developers with contractors.

Funding: Series A $4M

Series A $5.5M Seed $2M Seed $750K


VTS HQ: New York, NY Technology: Saas Industry: Commercial Real Estate (CRE) Platform: VTS is a web and mobile based CRM lease

management platform. Funding: Series A $7M

Seed $700K Floored HQ: New York, NY Technology: Haas, Saas Industry: Commercial Real Estate (CRE) Platform: Floored is a 3D and visualization platform. Funding: Series A $5.3M

Seed $2.1M


FieldLens HQ: New York, NY Technology: Saas Industry: Commercial Real Estate (CRE) Platform: FieldLens is a web and mobile project

management platform. Funding: Series A $8M

Venture $2.7M Venture $1.6M Seed $300K

Hightower HQ: New York, NY Technology: Saas Industry: Commercial Real Estate (CRE) Platform: Hightower is a web and mobile based CRM

lease management platform. Funding: Series A $6.5M

Seed $2.1M


04.The state of investments in real estate tech and VC funding.


VC Investments in Real Estate Tech

Equity Invested in Real Estate Tech To date, venture capitalists invested nearly $488 million in 45 deals in 2014. By end of year, venture capital (VC) investments are estimated to reach nearly $680 million in 60 deals. In 2014, the average venture capital investment per quarter reached nearly $237.35 million in terms of dollars and an average of 23 deals per quarter. Year-over-year, VC investments have increased by nearly 300% since 2013. Venture capital investments are estimated to increase by nearly 18% in 2015, to an estimated $800 million in roughly over 70 deals. The increase can be attributed to follow on investments, in addition to a handful of early stage investments.


VC Investments in Real Estate Tech Equity Invested in Real Estate Tech (Global) To date, global VC investments in real estate tech has reached nearly $463,370,000 in 2014. In 2014, nearly 24% of all VC investments in real estate tech were invested in US based real estate tech companies.

Globally, in the first quarter of 2014, nearly $240,390,000 was invested in real estate tech companies, while in the United States VC investments in real estate tech reached nearly $31,820,000.

$112,590,000 Was invested in US based real estate tech companies, representing 24% of the global landscape.

$463,370,000 Globally was invested in real estate tech companies. Collectively, China and India based real estate tech companies represented the largest investments in real estate tech companies in 2014.


05.The Future of the Real Estate Tech ecosystem.


Investments in Real Estate Tech

The Future of Real Estate Tech 1. Venture Capital Investments: Expect investments to gain momentum in 2015 as more complex real estate tech companies aim to solve operational inefficiencies in the real estate industry.

Excitement around real estate tech has brought increased attention amongst real estate tech entrepreneurs. Expect an increase in “me too”/ copycat companies that resemble existing high profile startups.

Expect investors (VC’s and institutional investors) who missed the boat on earlier real estate tech investments begin to make investments in real estate tech.

2. Frothy Follow On Rounds: Expect investments into existing real estate tech companies to increase in 2015. As most real estate tech companies raise their growth capital (Series B Round), valuations will remain frothy. 3. New York – London Exchange: Expect real estate tech investments around the world to increase in 2015, particularly in London.


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2015 RE:Tech Annual Report FUTURES REPORTstatic1.squarespace.com/static/516c687de4b00f416237be7e/t/55c1206… · 2015 RE:Tech Annual Report FUTURES REPORT ... Cloud technology is