For example, startups such as Zillow, Redfin, and Trulia were early champions of the digital real estate space. Two real estate tech startups called Compass and Opendoor are now considered “unicorns”, and others are well positioned to join them.
Not long ago, Roofstock, a housing investment platform Roofstock raised $35M in Series C funding from Canvas Ventures, Lightspeed Venture partners, Bain Capital Ventures, and Nyca Partners, QED Investors, and FJ Labs. Real estate finance startup RealityShares generated $28M in Series C from Cross Creek Advisors, Union Square Ventures, General Catalyst Partners, and Menlo Ventures.
According to data from Pitchbook, 2017 is set to be a record year for investments in real estate tech, and is tracked to surpass the $1B in investment into the sector in 2016.
Shifts in Real Estate Tech
Listing and search services had early victories in real estate tech, but there are many other blooming startups in both commercial and residential real estate.
Commercial Real Estate- This gigantic market comes with many enormous transactions, and has been slow to innovate. VTS, Reonomy, and Honest Buildings are leading the charge. Honest Buildings offers intuitive project management and procurement driven by data. VTS is a platform that lets landlords manage leasing assets. Reonomy lets users perform research on properties all over the nation, contact the owners, and identify comparable assets. Nestio provides all-in-one marketing and leasing management for brokers and landlords. CREXi offers a listings marketplace for commercial real estate spaces.
Residential Real Estate- This field is being reshaped by startups as well, particularly in terms of interactions between landlords and consumers. Relevant startups include but are not limited to:
- Triplemint: An innovator in online brokerages
- Cozy: Provides rental management to landlords while supporting rent payments and application approvals digitally.
- REZI: Offers a streamlined leasing process. The startup pays an upfront fee to become a tenant, then leases the property out.
These are only some of the first and most obvious cases in the digitalization of a massive industry, but their success so far means it would be advisable to watch for more exciting innovations in this space going forward.