Please provide investor sentiment report on the proptech space.

Goals

To gain understanding of investor sentiments on the proptech industry in order to inform future marketing strategies.

Early Findings

  • Overall, investors hold positive sentiments in their ability to elevate yearly revenues from the proptech space. A 2019 global survey by KPMG found that 77% of investing and financing respondents are likely to invest in proptech solutions in the next five years.
  • Investment in the global proptech startups in 2018 was nearly $7 billion compared to only $20 million in 2008. This number is likely to increase; a 2018 survey of real estate investors found that 31% of respondents are planning to invest in the proptech space while 26% are ready to partner with proptech companies.
  • The increased sentiment was also echoed by the 2019 MetaProp’s Proptech Confidence Index, which revealed that up to 80% of investor respondents expect to engage in more or equal number of acquisitions in 2020 compared to 2019.
  • Most of the respondents cited construction, edge computing, and sustainability as the focus areas of future proptech investment.
  • Forbes estimated the market size of the global proptech space to be $18 billion. This number is expected to grow in the coming years due to the increasing demand of technology in the real estate industry.
  • Inc. Magazine also reported that investors are increasingly pouring billions into the U.S Proptech industry with the 2019 investment exceeding $10 billion. Some of the top beneficiaries of these investments include real estate lenders like Compass, Opendoor, Better, Clutter, and Nextdoor.
  • A MetaProp survey report published in February 2020 revealed that most investors had dipped confidence in investing in proptech in the past 6 months due to the “WeWork DiePO” impact and the US election year.
  • 45% of investors in the proptech space plan to make more investments in 2020, although this is far from the 64% recorded six months ago.

Summary of our Early Findings

  • Our initial research was able to confirm that there has been an overall positive sentiment among investors in the proptech industry. More investment is expected in the coming months, except in the US where the investors' confidence has dipped in the past 6 months.

Proposed next steps:

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