Proptech business models and venture capital

Published on
March 6, 2024
February 9, 2022

Picture the scene. You have the same personal wealth as the GDP of Slovakia. Your world famous. You have movies made about you. Yet when you jump onto Facebook- you can’t get in to your Investors Private page!. You then search your friends list for the CEOs of the IBs on Wall Street + they have blocked you??? And worst of all, you been de-tagged from all those pics from your trip to Washington to see your pals at the Senate Committee?

We are still seeking confirmation if this is what happened to Mark Z, after Meta’s (Facebook’s parent) $220bn market valuation fall in 24hours last week (the largest one-day drop in history of a stock’s valuation)but nonetheless it must have been a tough day. (Trivia alert: Can you name the7 biggest one day falls in market cap ever? Answers at the bottom).

Tech metrics are from Venus, Real estate is from Mars…

The valuation hit, inter alia, was due to missed revenue targets+ the # of daily active users on FB falling for the 1st time ever between quarters (note we appreciate this is very oversimplified).

The almost perfectly elastic relationship between growth or usage metrics + the value of a tech company is one which is often applied but we feel should take less prominence in Proptech, owing to the underlying fundamentals of Real estate.

Real estate is ultimately transaction centric and is disproportionately sensitive to macroeconomic cycles- more so than other tech fields. Whether it be leasing a building, buying/selling assets or building something, these all have their root within a transaction-based outcome.  

As such, Proptechs can be caught in a space between:

(1) hitting metrics that they believe VCs require/are required +

(2) building out a business model that is linked to the value delivered to the customer (i.e real estate companies)- often this is nota SAAS model for example.

It is something we work closely with our Proptech clients on navigating. Adroitly managing this + stepping through the stages of growth is where the most successful Proptechs are able to unlock the huge TAM of Real Estate.

As for Meta + Facebook, will be interesting to see how things play out- given the simmering Apple conflict + the way Amazon benefitted from Meta’s demise. Might be worth Mark Z, sending a friend request to the team at My Space for some insights……

Media archive

Filter by:
Category
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The Proptechs Impacting "G" in ESG

June 19, 2024

Advanced Retail

June 3, 2024

Insurance Premiums for Residential

June 3, 2024

Asset Repurposing

June 3, 2024

The Future of Work

June 3, 2024

The AI Future

June 3, 2024

Construction Automation

June 3, 2024

Proptech Usage in Indian Real Estate

June 3, 2024

Impact of AR on the Home

June 3, 2024

Sustainability in Construction

June 3, 2024

Proptech Fun Facts & Insights

June 3, 2024

Proptech Fun Facts & Insights

June 3, 2024

Proptech Fun Facts & Insights

June 3, 2024

ESG + Real Estate + Benchmarking

June 3, 2024

Buildings as Batteries

June 3, 2024

What Does Proptech Mean?

March 6, 2024

Building Sustainability

March 6, 2024

Proptech Fun Facts & Insights

March 6, 2024

Brazil Builds

March 6, 2024

Proptech Fun Facts & Insights

March 6, 2024

Proptech Fun Facts & Insights

March 6, 2024

Proptech Fun Facts & Insights

March 6, 2024

Be smart...choose Smart

March 6, 2024

On fire... tech to the rescue?

March 6, 2024

The Impact of AI, for Real Estate

March 6, 2024

Who are "The Proptech Connection"?

March 6, 2024

Proptech & Housing Affordability

March 6, 2024

Proptech Facts

March 6, 2024

Constructive Changes...

March 6, 2024

Concrete threat

March 6, 2024

Proptech showtime...

March 6, 2024

Proptech (Fun) Facts & insights

March 6, 2024

Industrial Revolution 4.0

March 6, 2024

AI take-over...

March 6, 2024

Powder box

March 6, 2024

It's Electrifying...

March 6, 2024

Proptech Fun Facts by The PTC

March 6, 2024

Greenwash

March 6, 2024

All the way to zero

March 6, 2024

China 101 & Proptech

March 6, 2024

Proptech highlights by the PTC

March 6, 2024

Trendsetting Tokyo

March 6, 2024

Recovery under construction?

March 6, 2024