Proptech

Step into the proptech sector—where cutting-edge technology merges with property management to reshape real estate.

Transforming the future of real estate today

Proptech is one of the most promising sectors. And its future shines brighter than ever. Its market potential is vast, with emerging technologies and shifting consumer preferences fueling it. Plus, investor enthusiasm is expected to grow steadily (the projected proptech venture capital by 2027 is over $42B).

Why it matters:

It all influences proptech startups positively, leading to the development of numerous opportunities for innovation, market entry, and growth:

  • Developing intelligent home systems
  • Creating VR and AR solutions for virtual property tours
  • Leveraging blockchain to ensure secure transactions
  • Creating green building solutions

Between the lines:

Not only opportunities strike but also challenges. Proptech startups need to be ready to compete, comply with regulations, and win in a fundraising race.

With vast experience helping proptech startups, our Waveup expert team knows what makes companies succeed and shine for investors

$3B+
Secured in funds
600+
Ventures advanced
80+
Industries explored

What we do:

We assist in securing the necessary venture capital, creating persuasive and insightful proptech pitch decks and solid business models, and pinpointing the most beneficial M&A opportunities.

Go deeper:

Look through our proptech market research to discover the latest trends, key industry insights and challenges, and the cheat codes to attract investment.

4x growth
The proptech market is set to see a fourfold leap by 2032.

 

50%+
Over 50% of real estate companies leverage proptech solutions.

Driven by emerging technologies, changing consumer needs, and a growing demand for software solutions
63%

The software segment contributed the most revenue, at 63.0%.

Every 7th

Commercial real estate investor plan to integrate proptech into their business strategies.

7/10

Over 65% of property managers report cost savings with digital solutions.

VENTURE LANDSCAPE

In 2022, proptech startups secured over $19.8B in venture funding

Key verticals:

  • Real estate platforms and marketplaces
  • Smart home tech
  • VR and AR
  • Data analytics and AI

Leading proptech investors we worked with

Write to us to know more

Challenges of proptech startups

There are numerous roadblocks on the way to a startup success, but we know how to overcome them.

Fierce rivalry:

Companies find proptech lucrative.

Stats: the estimated number of proptech startups nowadays is 10K. It means that the industry is not only a fertile ground but also a battleground.

Why it matters

Intense competition can lead to:

  • Difficulties with market positioning
  • Problems with gaining market traction and customer attention

What it takes:

To stand out, proptech startups need to:

  • Cater to particular niches
  • Develop a unique value proposition
  • Leverage customer feedback to improve their product
  • Partner with top industry players

Tech hurdles:

Sometimes integrating or adopting proptech solutions is like fitting a square peg into a round hole. The industry is developing by leaps and bounds. And many systems become outdated fast. That’s why proptech startups must always keep their finger on the pulse.

Why it matters

Failure to innovate may result in:

  • Operational insufficiency
  • Challenges of product adoption by real estate businesses
  • Hurdles with integrating solutions within existing systems

What it takes:

  • Invest in R&D to innovate on time
  • Develop user-friendly interfaces to maintain compatibility with the existing systems
  • Build an expert team to ensure comprehensive expertise for smooth tech integration
  • Organize education campaigns to communicate the value of solutions to potential clients

Stiff regulations:

Complying with the industry regulations is the first-comes-first thing. The bad news is the proptech sector is highly-regulated. And adhering to all the rules is quite a pain.

Why it matters:

Inability to comply usually leads to:

  • Legal consequences
  • Loss of trust
  • Financial penalties

What it takes:

  • Invest in legal expertise to fully understand and effectively adhere
  • Implement updated compliance measures to stay informed about possible changes in laws
  • Leverage technology to automate compliance processes

Securing investments:

Fundraising is not a piece of cake. Proptech startups require substantial resources to develop a product and scale their business. And not all investors are ready to allocate these resources just like this.

Why it matters:

Without proper funding, proptech startups may struggle to:

  • Fully develop their product
  • Scale their operations
  • Ensure their project’s viability in a long-term perspective

What it takes:

  • Target specific segments to demonstrate to potential VCs that you have a full grasp of the market and a clear plan for catering to its needs
  • Craft a robust business plan and a clear financial model to articulate your value proposition in a proper manner and interest investors
  • Have a strong team to make your project more appealing to investors and survive in a long-term race

Stats: over 23% of proptech startups fail because they chose the wrong teams.

FAQs

How attractive is the industry to potential proptech investors?

This industry is highly interesting to investors, and the recent money infusions prove it (almost $20B were invested in 2022).

If you are a proptech startup, how easy is it to raise funding today?

It may be more challenging to secure the necessary funds nowadays than it was a couple of years before. Still, with the right approach, a strong business plan, and a powerful value proposition, a proptech startup has all the chances to become investors’ choice.

How long does it take to create a pitch deck and financial model for a proptech startup?

On average, our team needs two or three weeks to complete all the documentation. However, sometimes we may need more time, yet not more than a month, owing to a hectic schedule and project complexity. For more details, contact us.

What are the key mistakes proptech startups make in their pitch decks?

Many proptech pitch decks lack coherent investment narratives and appealing intros. Showing only graphs, numbers, and charts to investors is not the best option, as the new ventures must attract attention rather than make them feel bored. Also, some pitch decks don’t answer two essential questions: ‘Why now?’ and ‘What’s your vision/mission?’

How competitive is the proptech market?

The proptech market is very competitive. There are more than 10K startups today and numerous established players like Ascendix Technologies, Zumper Inc., and Opendoor.

What services do you provide for investors looking to invest or already investing in proptech?

We help investors evaluate proptech investment opportunities by conducting in-depth research and presenting valuable insights in a clear, visual format. Plus, we offer comprehensive fundraising services to proptech ventures and related companies in our portfolio.

Do you provide proptech M&A support?

Absolutely! We can help with your M&A goals, whether in the proptech space or beyond. We take care of everything, from finding potential deals to evaluating them and ensuring smooth collaborations after the deal is sealed.

Do you make intros to proptech VCs?

Of course! We help link you with the right venture capitalists in the proptech space. By assessing your project’s team setup, round size, and product, we’ll guide you in partnering with investors throughout the entire deal and beyond.

Do you have available data or research to purchase on the proptech market?

Certainly! Our specialists deliver customized insights into the dynamic proptech sector. Our in-depth research encompasses a thorough analysis of the industry landscape, competitive evaluations, and a broad market perspective, all designed to grant you a distinct edge. We leverage reliable data sources to help you recognize promising opportunities and potential challenges and identify current investment trends.

Which growth stage of companies have you worked with in the past?

We ensure growth and fundraising guidance to the new market entrants, steering them right from the early Pre-Seed phase through Series C and further.

Venturing into proptech? You're in the right place

Leverage Waveup's unmatched expertise in fundraising, M&A advisory, and growth hacking to take your project to the next level. Share your email, and let's discuss how we can help!

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