NEW YORK CITY—Real estate technology investors and the CEOs and founders of start-up firms in the space worldwide are “solidly confident about 2017,” according to a new report.
MetaProp NYC has released its Q4 2016 Global PropTech Confidence Index, which found both groups holding a bullish sentiment and 92% of venture capital firms planning to match or exceed the number of 2016 deals in 2017.
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. The Confidence Index has a range of zero to 10. An Index above five indicates that respondents are confident in the market; more responded positively than negatively to the survey questions.
“There is no doubt that there has been a massive exhale from all those in the PropTech industry who were holding their breath through the election season,” notes MetaProp NYC co-founder and managing director Aaron Block. “With an 8.2 out of 10 investor Confidence Index and 6.6 out of 10 for startups, the survey's results support what we have been hearing on the PropTech street — a far less negative atmosphere and greater market optimism from investors and startup CEOs now that the election drama is behind us.
“Combined with the mega-merger of VTS and Hightower, the last two weeks have been unprecedented in the PropTech industry. If I were an incumbent real estate company, I'd be paying major attention. The unicorns might eat the dinosaurs!”
Among the report's findings, 92% of PropTech investors expect to match or exceed the number of investments in 2017 compared to 2016, demonstrating confidence in the growing PropTech 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 PropTech M&A iceberg, and 63% of startups are forecasting at least 2X revenues or more for 2017, compared to their 2016 numbers, demonstrating strong sales growth optimism.
Comparing to earlier this year, in Q2, 33% of startups were targeting asset types outside of commercial and residential, while Q4 saw 43% showing greater tech disruption beyond those categories into leisure, multi-use and industrial.
In Q2, 44% of startup CEOs said they expected greater difficulty in raising venture capital, but that number dropped to 27% in Q4, demonstrating increased optimism. Also in Q2, only 17% of startups were disrupting multiple asset types, but in Q4, the number shot up to 57%, broadening the real estate categories being effected.
The survey was designed in collaboration with the Real Estate Board of New York and the Royal Institution of Chartered Surveyors.
MetaProp NYC has released its Q4 2016 Global PropTech Confidence Index, which found both groups holding a bullish sentiment and 92% of venture capital firms planning to match or exceed the number of 2016 deals in 2017.
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. The Confidence Index has a range of zero to 10. An Index above five indicates that respondents are confident in the market; more responded positively than negatively to the survey questions.
“There is no doubt that there has been a massive exhale from all those in the PropTech industry who were holding their breath through the election season,” notes MetaProp NYC co-founder and managing director Aaron Block. “With an 8.2 out of 10 investor Confidence Index and 6.6 out of 10 for startups, the survey's results support what we have been hearing on the PropTech street — a far less negative atmosphere and greater market optimism from investors and startup CEOs now that the election drama is behind us.
“Combined with the mega-merger of VTS and Hightower, the last two weeks have been unprecedented in the PropTech industry. If I were an incumbent real estate company, I'd be paying major attention. The unicorns might eat the dinosaurs!”
Among the report's findings, 92% of PropTech investors expect to match or exceed the number of investments in 2017 compared to 2016, demonstrating confidence in the growing PropTech 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 PropTech M&A iceberg, and 63% of startups are forecasting at least 2X revenues or more for 2017, compared to their 2016 numbers, demonstrating strong sales growth optimism.
Comparing to earlier this year, in Q2, 33% of startups were targeting asset types outside of commercial and residential, while Q4 saw 43% showing greater tech disruption beyond those categories into leisure, multi-use and industrial.
In Q2, 44% of startup CEOs said they expected greater difficulty in raising venture capital, but that number dropped to 27% in Q4, demonstrating increased optimism. Also in Q2, only 17% of startups were disrupting multiple asset types, but in Q4, the number shot up to 57%, broadening the real estate categories being effected.
The survey was designed in collaboration with the Real Estate Board of
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
