Proptech Startup CEO and Investor Confidence Steady End-2019
In the proptech world, no other business has achieved the status of WeWork. The co-working space provider’s stunning decline last year after a failed IPO sent shockwaves through the world of proptech investing. Investor confidence went from an all-time high of 8.8 at the mid-year marker, down to 8.0 by the end of the year, according to Metaprop. Still, investor confidence even after the WeWork debacle is higher than it was at the end of 2018, a sign of proptech’s increasing resilience.
Startup CEO confidence remains steady, holding above 7 out of 10 for the past 3 years. Perhaps even more telling, 81% of startup CEOs expect it to be either easier to raise venture capital or about the same this year in comparison to 2019, a sure sign of increasing investors interest and confidence.
In the wake of WeWork, proptech investors may steer clear of asset-heavy investments with large downside potential. Instead, investors are turning to smaller, technology-focused businesses like those leveraging building management systems or connecting to the Internet of Things. WeWork’s struggles were an important caution sign in the world of proptech investing, but not a stop sign. WeWork may yet salvage its situation. As for the rest of the proptech investment sector, they’re taking WeWork’s lessons in stride.
Read the full report: https://www.metaprop.org/confidence-index
