Commercial Buildings Biggest Target for StartUp Deployment in 2020
The fast-paced world of StartUps is targeting commercial real estate more than any other form of real estate in 2020. Data companies geared towards real estate are increasingly drawing attention from institutional investors. Intel Capital, the technology giant’s VC entity, recently announced a $16 million funding round into Cherre, a software-as-a-service platform for landowners and real estate investors. Intel is just one of many. In total, 67% of StartUp investors in the real estate industry are targeting the commercial real estate sector, according to a study from Metaprop.
Last year was a banner year for StartUps in the real estate sector, with 34% reporting more than $1M in revenue, a year over year increase of 24%. That being said, investors have notably lost confidence in the wake of WeWork’s failed IPO. MetaProps’ investor Confidence Index, produced in partnership with the Real Estate Board of New York and The Royal Institution of Chartered Surveyors, dropped to 8 out of 10, from an all-time high of 8.8 earlier last year.
As the PropTech and StartUp space matures, more companies will step up their hiring and increase their yearly revenue. Consolidation is expected to be the main high. Mixed-use investment may be rising quickly, but investors can be sure that commercial real estate will be the most popular property type for startup investing for the foreseeable future.
Read the full report: https://www.metaprop.org/confidence-index
