PropTech Startup Valuation
To further substantiate the valuation of a PropTech startup company by completing a valuation analysis, including a review of comparables and their associated valuation multiples.
- As recently as 2019, the multiples involved in PropTech company acquisitions were as high as 10X revenue.
- According to Industrious CEO Jamie Hodari, "healthy multiples" for PropTech startups are generally between 6X to 7X revenue.
- Notably, the startup Indoustrious raised $222 million over four rounds since it was founded in 2013:
- In parallel, American real estate database Zillow and vacation rentals startup HomeAway have each enjoyed sizable multiples and raised significant funding over the last few years.
- Overall, industry experts including TechCrunch and Inc highlight the recent explosion in PropTech investment, as well as the potential for an investment bubble within this industry sub-sector.
Real Estate Industry Multiples
- Meanwhile, GCA Advisors published a 2019 Real Estate Technology Market Update that highlights the revenue and EBITDA multiple for publicly traded real estate companies by sub-sector:
- Additionally, Statista reported the following 2020 multiples for real estate sub-sectors globally:
- Although the initial information packet provided for goUrban did not include the referenced investor presentation/financial model, there appear to be several comparable PropTechs which may be worth further investigation:
- Opendoor, which raised $300 million in 2019, facilitates home purchases/sales using DIY open houses and smartphone home tours.
- Ohmyhome allows buyers to view homes virtually, see some in-person and later facilitates the purchase.
- Qualia introduces a "simple, secure and delightful" online option for closing real estate deals.
- Flip streamlines the subletting process by listing apartments for free, conducting background checks on prospective tenants, guaranteeing timely rent payments and preparing sublet agreements.
- Notably, a parallel scan of our proprietary research database of over 1 million sources and were unable to find any specific research reports that address the stated goals of this research.
Proposed next steps:
You need to be the project owner to select a next step.