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Why You Should Think Twice Before Investing In Real Estate Tech Startups


While the industry's bullish, it may not be a total real estate tech revolution yetAccording 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]