Research

SUMMARY FINDINGS

• 62% of investors expect to make the same number of prop-tech investments over the next 12 months. This is a departure from the last Index in which 71% of respondents expected to make more investments.
• 71% of startup founders believe that it will be harder to raise capital in the coming 12 months, up from 27% six months ago.
• 52% of startups have stated that without raising additional capital, they have less than 12 months of runway.
• 35% of investors are interested in investing in startups that impact the multifamily industry, a record high for the category. Conversely, only 10% of investors are interested in investing in startups that impact the office industry, a record low for the category.

SUMMARY FINDINGS

• Investor Confidence once again hit a record high of 9.3 out of 10, which was previously recorded in Year-End 2020.
• Startup Confidence has declined from its all-time high of 8.3, recorded in Mid-Year 2021, to a more modest 7.4.
• 71% of investors expect to make more prop-tech investments over the next 12 months, up from 54% six months ago.
• 73% of startup founders believe that it will be harder, or the same level of difficulty, to raise capital in the upcoming 12 months, up from 58% six months ago.
• Investors expect to invest in at least 8 startups in the upcoming year, a record high for the Index.
• 25% of startup founders expect to hire 20 or more full-time employees in the upcoming year, the highest level we have seen since the Index began in 2016.

SUMMARY FINDINGS

• Investor Confidence remains strong at 8.9 out of 10. This is the second-highest investor confidence recorded
• Startup Confidence has reached its highest level on record at 8.3 out of 10. This is almost double the startup sentiment at Mid-Year 2020
• 91-percent of founders believe that it will be easier to raise capital during the next 12 months, the most confidence we’ve seen since the Index began in 2016
• 54-percent of investors expect to make more prop-tech investment over the next few months, up from 33-percent a year ago

SUMMARY FINDINGS

• Investment into and utilization of smart building technologies are influenced by sustainability goals, cost savings, and more recently, new revenue generation.
• Most technology being implemented is a point solution for individual buildings and in the pilot stage.
• Some owners are on the sidelines waiting for leaders to emerge while others are attempting to improve operations without technology.
• Occupiers increasingly care about their space utilization, productivity, and attracting and retaining talent. They are seeking more control and transparency over their space.
• The most innovative real estate operators are beginning to scale technology across their portfolios.

SUMMARY FINDINGS

• China’s development of prop-tech is still slightly behind that of the US. However, China’s cutting-edge approach to retail, e-commerce, and mobile payment has unlocked its potential for prop-tech growth.
• The rise of prop-tech in China is triggered by the slowdown in the real estate market, the prevalence of mobile internet, and the government’s push for innovation.
• In the short term, the Chinese prop-tech industry will likely continue to follow the path of the US. 
• In the areas of consumer-facing prop-tech, physical retail innovation, and 5G-related applications, China’s startups may lead the world.
• Even though China has a unique startup ecosystem, many prop-tech startups have the potential to build cross-border businesses with the right approach.

SUMMARY FINDINGS

• The Investor Confidence Index is 9.2/10, a record high, up from a previous ceiling of 8.8 in mid-2019 and fueled partly by the momentous performance of prop-tech companies in the public markets in the second half of 2020. 
• The Startup Confidence Index is 7.7/10, the highest recorded level to date. The acceleration of the adoption of technology in Real Estate caused by COVID-19 has created new opportunities for existing prop-tech companies, as well as an environment of innovation and growth.
• 94% of investors believe that the pandemic will further accelerate the adoption of prop-tech in the real estate industry, up 5% from mid-year 2020.

• 39% of startups say it will be easier to obtain venture capital funding over the next 12 months compared to the previous 12 months, a dramatic increase from an all-time low of 12% during the middle of 2020.

SUMMARY FINDINGS

• The Investor Confidence Index is 5.9/10. Although at a four-year low, investors agree that COVID-19 will accelerate the adoption of prop-tech within the real estate industry, setting the stage for brighter days ahead.
• The Startup Confidence Index is 4.7/10, with founders’ expectations to raise capital being low, as well as scaled back sales growth targets across most of the industry.
• 89% of investors and 84% of startup founders believe that COVID-19 will accelerate the adoption of prop-tech in the real estate industry.
• 33% of investors expect to make more prop-tech investments over the next 12 months compared to the previous 12 months

SUMMARY FINDINGS

• The Investor Confidence Index is 8.0/10, falling from an all-time high of 8.8 at Mid-Year 2019 but still up from 7.7 a year ago.
• The Startup Confidence Index is 7.2/10, decreasing minimally from a 7.3 at Mid-Year 2019 and remaining steady over the last couple of years.
• 16% of the Startup respondents are founded by females, an all-time high and double the number at Year-End 2016
• 86% of Investors said that prop-tech companies in their portfolio are currently performing above expectations or meeting expectations in terms of customer growth.
• 34% of Startup respondents had $1+ million in total annual revenues in 2019, up from 24% a year ago

SUMMARY FINDINGS

• 60% of prop-tech Investors plan on making more investments in 2019 compared to 2018, an all-time high and up from 46% six months ago
• 46% of CEOs said it is either likely or very likely that their company will be acquired, go public or have a major liquidity event compared to 28% in Mid-Year 2018
• 32% of Startup CEOs forecast five times growth in 2019, up from 24% in Year-End 2017
• The average number of prop-tech investments increased to 5.0 in Year-End 2018, up from 2.7 in Year-End 2017
• 90% of Investors expect to see the same amount or more pitches from startups in 2019, compared to 2018

SUMMARY FINDINGS

• Investor confidence is at 8.8/10, leaping to an all-time high and up from a 7.7 at Year-End 2018
• Startup confidence is at 7.3/10, increasing from 7.0 in Year-End 2018 and matching an all-time high from two years ago.
• 64% of prop-tech Investors plan on making more investments over the next 12 months compared to the previous 12 months, an all-time high and up from 46% a year ago
• 100% of Investor respondents expect to see either more pitches or about the same number of pitches from prop-tech companies over the next 12 months, up from 90% at Year-End 2018

SUMMARY FINDINGS

• 96% of investors are planning to make either the same number or more prop-tech investments in the next 12 months compared to the previous 12 months, up dramatically from 76% a year ago.
• 57% of investors are expecting to see more pitches in upcoming 12 months, down from 76% at year-end 2017.
• 36% of prop-tech investments are exceeding expectations in terms of customer growth, up from 21% year-end 2017 and from 12% two years ago.
• 44% of startup CEOs said their company has been operating for at least three years, a major increase from 30% just six months ago. 

REPORT SUMMARY

"An Introduction to prop-tech in China" is a research paper published by Loan-Aid Investment Limited and Columbia University's Center for Urban Real Estate (CURE). The research findings delve deep into the dynamic growth of prop-tech startups and venture capital activities in China.  

SUMMARY FINDINGS

• 76% of Investor respondents expect to see more M&A activity in the upcoming 12 months compared to the previous 12 months, up significantly from 57% in Q4 2016
• 24% of Startup respondents reported between $500K - $2M in total revenue to date, a major increase from the 9% that fell in this revenue range in Q4 2016, indicating high revenue growth and rapid startup maturation

SUMMARY FINDINGS

• Respondents to the survey increased by 175% from Q2 2017 to Q4 2017.
• 86% of prop-tech startup CEOs expect their space to be more competitive in 2018, compared to 2017, up from 76% in Q2 2017. 
• 76% of investors are expecting to see more pitches from prop-tech companies in 2018, compared to 2017, up from 62% in Q2 2017.
• 31% of investors are making investments past the Series A level, up from 19% in Q2 2017. 
• 48% of startup CEO survey respondents are headquartered outside the United States, an all-time high, up from 30% in Q2 2017 

REPORT SUMMARY

This report highlights the trends influencing the transformation of the modern work environment and the technology being adopted to turn buildings into smart offices. 

The most dynamic organizations are witnessing real benefits today from the thoughtful implementation of smart office environments. Whether it is owner’s capturing higher rents and occupancies or corporations being able to attract the best new talent it is clear that pressure will continue to build on non-adopters. 

Dan Fasulo, Research Executive in Residence, Loan-Aid Investment Limited

REPORT SUMMARY

How Technology is Creating the “Smart Parking Garage”

This white paper highlights how “GarageTech”’s assault on this real estate asset class is rapidly changing every aspect of the business, from development to operations to final valuation.

SUMMARY FINDINGS

• Overall, the Q4 2016 Investors’ Index was 8.2, up from 8.0 in Q2 2016, while the Q4 2016 Startups’ Index was 6.6, up from 5.4 in Q2 2016. 
• 92% of prop-tech investors expect to match or exceed the number of investments in 2017 compared to 2016, demonstrating confidence in the growing prop-tech sector. 
• 57% of investors expect to see more M&A activity in 2017, as recently seen in the VTS-Hightower merger, which many consider the tip of the prop-tech M&A iceberg.
• 63% of startups are forecasting at least 2X revenues or more for 2017, compared to their 2016 numbers, demonstrating strong sales growth optimism. 

SUMMARY FINDINGS

• Investors are significantly more confident about the real estate tech market than entrepreneurs
• Investors and startups both expect the market to get more competitive—except for finance & investment and consumer / broker tech
• Investors are leaning in, but entrepreneurs (particularly on the West Coast) are very skeptical of funding availability and exit opportunities