Why You Should Think Twice Before Investing In CRE Tech

While the industry's bullish, it may not be a total real estate tech revolution yet. According to industry estimates, nearly all real estate startups fail—and most of them in less than two years after funding, The Real Deal reports.

Noel Fenton, co-founder of Silicon Valley investor Trinity Ventures, says 90% of the US's 175 real estate tech companies will go under within five years. He should know; Trinity has thrown over $56M into real estate ventures.

With all these startups, Noel says it's tough to get attention (and cash) from investors. But there's a silver lining: Zach Aarons, a co-founder of real estate tech accelerator MetaPop, says he expects the market to tighten soon, as startups will "sell or combine to realize some synergies." [TRD]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Site Centers To Stop Trading As It Winds Up Operations

Newmark: $179B In Low-Rate Real Estate Loans Face Refinancing Risk

Brookfield Veteran Departs To Become Pretium's Global Real Estate Lead

Lenders Accuse Nord Group Entities Of Pocketing Rents, Faking Insurance As Multifamily Empire Crumbles

Willy Walker On The Risks And Sacrifices Behind Walker & Dunlop's Growth

Howard Hughes Texas President Jim Carman To Step Down

Apartment Rent Declines Slowing, Demand Rising As Renter Pool Expands

Prologis Warns Higher Borrowing Costs Will Slow Industrial Deals, Development

After Rig Collapse, Citadel HQ Project Resumes With Safety Protocol Update

Swedish Real Estate Giant To Buy Stockbridge For Up To $550M

Space Race: How The Private Sector's Orbital Aspirations Are Driving CRE On Earth

Regulators Reject Proposed Rules For Data Centers On Nation's Largest Grid