Due to advancement in technology, the real estate industry has witnessed a rise and crucial transformation in recent years. One of the rising trends in this sector is the rise of proptech startups.
It is very significant for aspiring businessmen who want to enter the proptech space to understand the different verticals of investment and how to attract the correct clients.
To help all those aspiring entrepreneurs, we have written this article, in which we will explore the layers of proptech investment verticals and proptech startup investor list.
Proptech Investment Verticals: Overview
Proptech stands for “Property Technology”, which, as its name implies, is essentially any technology that has something to do with the built environment.
With cutting-edge services, intelligent gear, cloud-based software platforms, and smartphone apps, Proptech companies are revolutionizing the real estate sector. They assist property owners, landlords, and tenants all across the world to more effectively manage their assets.
Hence, to achieve success in this challenging market, proptech startups need adequate funding and support from the investors who have the knowledge of this space and know how to carry forward the startup.
Proptech Startups: Overview
Proptech Startups are entrepreneurial businesses that support technology to solve the problems and enhance productivity in the real estate sector.
The people associated with these startups use various technologies such as Artificial Intelligence, IoT, Blockchain, and many more to transform different verticals within the industry.
Why has Proptech Grown To Be So Significant?
With the global managed real estate investment industry, real estate is the largest asset class in the World.
The real estate industry is currently faced with considerable opportunities and problems, such as:
- Affordable Housing
- Environmental effects of structures
- Paradigm shifts in how we live, work, and create communities.
Proptech can assist a well-known old school industry in evolving and adapting to the modern world. It is becoming more and more obvious that technology will play a crucial role in the future of both the planet and real estate.
Types of Proptech Investment Verticals
There are various types of Proptech Investment verticals which can be categorized into several key areas:
- Residential Property Tech:- Residential Property Tech refers to all digital solutions created by real estate tech firms to simplify the process of buying, renting, or owning homes and apartments. Residential property tech’s environment is characterized by platforms for finding properties, property sale equipment, virtual property tours etc.
- Commercial Real Estate:- Commercial real estate technology, or CRE Proptech, refers to the use of all cutting-edge tools by businesses and individual CRE professionals to effectively manage, search for, rent out, and sell office, industrial and retail property assets.
- Proptech Market Map:- The most recent categorization is also by far the most comprehensive because it adequately represents the current proptech market and combines the best elements of the two earlier classifications.
Top 3 Ways to Attract Proptech Investors
You can attract the Proptech investors by following the ways given below:
- Analyze Prospective Investors
Create a target list of potential investors and perform due research on each one before proceeding. Work to get warm introductions first, then qualify leads as you move down the list, and then work the sales process.
Learn as much as you can about any potential investor before meeting with them, including their background, personal style, and past successes and failures in investing.
- Study Marketing Your Vision
Investors may have confidence in your business, but their main objective is to profit from their investment. Therefore, it’s imperative to emphasize how an investment in your company will specifically benefit them. When pitching, have your fundamentals in order.
The easiest method to stand out and catch their attention when pitching to a large company or a venture owner is to demonstrate precisely how and when they will receive their money back.
- Taking the Initiative
Investors are enthralled by founders that take great initiative and determination to achieve their business goals. In addition to outlining their long-term goals, founders must show that their recent and ongoing efforts have been successful in achieving those objectives.
By collecting data pertinent to the business use case and crunching the numbers to show the potentially favorable internal rate of return or growth indicators. Entrepreneurs have already completed the task of providing tangible evidence of a viable investment opportunity.
If you want to enter the proptech space, then it is very crucial to understand these ways to attract the proptech investors and also to understand this industry.
With the right vision, execution plan, analyzing proptech investors, Proptech startups can drive innovation and unlock new opportunities for growth.