The proptech industry is heading into a revolution zone, which is sure to change the way property market operates.
FREMONT, CA: The property technology industry is gaining significant momentum right from the beginning of 2020. The past few years gave rise to several proptech firms. While many of them attracted investors and scaled up operations, many slowed down after an initial boom. These ups and downs are expected to continue as the industry evolution is on. However, trends in the first couple of months in 2020 tell that investors are still ready to invest in new proptech firms with promising prospects.
Some of the largest proptech firms suffered major setbacks last year, and they have not been able to deter venture capitalists from funding budding proptech startups. Conventionally, venture capitalists focus their attention on app-based service providers in the property industry. But now, there is an increase in investment in proptech companies that solve complex issues and target anything ranging from building and renting to maintenance and renovation. Niche proptech portfolio is expected to get increased attention from investors.
As the challenges of environmental safety and sustainability are becoming bigger, the proptech sector is witnessing an increased demand for relevant solutions. Investors are looking to invest in firms that offer powerful solutions to make buildings greener and lessen the real estate industry's carbon footprint. Some of the major investors have created dedicated programs to support firms that contribute to managing issues like pollution and climate-related impacts.
Industrial and commercial real estate has seen rapid growth from the beginning of 2020. This growth has driven the opportunities for established and upcoming proptech companies. Capitalizing on these opportunities will enable proptech companies to achieve momentum in the market.