July 17, 2017
Why Tech is the Future of Real Estate
Nav Athwal reported in Forbes on #NewTech in real estate in his article, “Predicting the 2017 Winners in Real Estate Tech.” As the nation continues to recover from the Great Recession and its legacy still hovers over investors, the commercial and real estate industry is thriving and is expected to continue doing so. Why? Because the future lies in real estate technology solutions and service providers. Companies that provide technologically advanced processes for buying and selling land and buildings are attracting millions of dollars in venture capital.
Technology is the Future of Real Estate
According to CB Insights, real estate tech funding reached new highs in 2016. With $2.6 billion across 235 deals, real estate tech companies raised historically significant funds. The third quarter last year saw 53 deals, the seventh quarter in a row with more than 50 successfully closed deals for real estate tech startups. The fourth quarter broke the hot streak with only 49 deals.
Athwal writes that it is possible to predict who will secure the most investment dollars in 2017 by looking back at the 2016 winners.
Who were the Real Estate Tech Leaders of 2016?
Companies that bring buyers and sellers together in an online real estate platform did particularly well in 2016. Zillow, for example, saw its stock share price rise more than 42 percent after a third quarter that soared above and beyond expectations. Across five consumer-facing brands, Zillow Group has an average of 140 million unique users per month. This is 13 percent more than last year, and, again, beats analysts’ expectations. Shareholder values are continuing to increase, especially for early investors.
Another company with significant gains last year was Clara Lending, which offers a streamlined and customized lending process. Another similarly successful company was Compass, which uses data analytics to assist sellers in accurately pricing and marketing their homes to buyers. Compass raised $75 million Series D funding rounds, and Clara Lending raised $27 million Series B funding rounds in the third quarter.
As more and more industries continue to be ‘disrupted’ by Silicon Valley, Uber, Airbnb and the like, real estate investors and stakeholders need to stay tuned to the latest developments more than ever. We aim to help you do that on our blog.
About Topouzis & Associates
Topouzis & Associates, P.C. is here to help lenders, real estate investors, attorneys and real estate enthusiasts stay up-to-date with the latest industry news. Read more interesting articles on our blog or visit our homepage for information about our services!
