It’s hard to believe we are in the last quarter of 2015! The year has been filled with new technology, studies, and trends that are changing the way we work in the commercial industry. Among the greatest of 2015 are some of the biggest venture capital investments making a splash on their own. What’s making me so excited is that for the first time in my entire career I actually feel that this is REAL, technology and real estate are finally intersecting. To date, 2015 has seen over $160 million in real estate tech financings involving some of the top 20 smart money VCs we’ve seen. Assuming the current trends continue, these top VCs are averaging 15 deals annually and we can learn a little something from them! So where are these top VCs putting their money…
These five real estate tech categories are where these hotshot VCs are spending their money and where we are seeing real user adoption:
1. Leasing Management Software - Leasing management software involves programs and platforms aimed at brokers, owners, and property managers. Built to be simple to use and streamline the leasing process, VCs are taking advantage!
2. Brokerage Platforms - Tech-enabled brokerages are taking full advantage of platforms designed to assist with the buying and selling of properties. The needs of clients are met with efficiency, helping brokers close deals smarter and faster.
3. Investments - An area that has seen a large increase in volume is the investment sector. The availability of technology through the platforms they service, investors are able to seek new opportunities in larger pools that they weren’t able to access previously. These platforms have created a space for investors to feel constantly connected to their investment portfolios and find the right investment deal for their situation.
For some, these platforms offer smaller investment opportunities, especially through the crowdfunding space, giving access to thousands of deals from across the country that weren’t available before. Investors, developers, and borrowers, are vetted through the platform with almost every piece of information needed to make sound investment decisions.
4. Listing Services - An area showing great use of real estate technology is in listing services. Platforms designed for brokers to upload their listings allowing people to search for both residential and commercial properties with ease. While this has been available to our industry for a few years, the availability of information and the consumer friendly platforms make the entire process easy from start to finish.
5. 3D - I’m excited about what 3D tech has already brought into our industry and I can only imagine what’s coming next. Currently, millions of dollars are being thrown to get this tech out and out FAST! 3D technology is adding layers into our industry that were merely concepts just a few years ago. Now, 3D models of physical spaces are being created and showcased to clients on another level!
What companies are on your “must-watch list”? Let’s continue to conversation on Twitter. I’d love to hear what VC investments and companies you thought were a big hit in 2015.