Wouldn’t you think the capital of real estate would also be the capital of real estate tech? It’s on its way, but it’s not quite there, says Metaprop NYC co-founder and partner Aaron Block.
Aaron tells Bisnow he’s on a mission to get NYC to that level. About a year ago, the former Cushman & Wakefield exec (then based in Chicago) founded Gotham’s only tech accelerator focused specifically on real estate with partners Clelia Peters and Zach Aarons.
Aaron points out that accelerators for fintech, healthcare and even fashion abound in the city, so it's time, he says, for real estate to join the party.
Speaking of parties—OK, it was a breakfast event—Metaprop brought the CEOs of its first class of five companies together before a crowd of about 150 for a “demo day” event at 7 World Trade Center on Tuesday. Snapped: the full class of CEOs.
Companies getting a boost from the program include a platform that speeds the efficiency of cleaning hotel rooms, one that streamlines the process of renting out property for small landlords, one that makes a system to monitor changes in humidity and temperature in buildings and homes, and one that makes and installs a system to regulate temperatures in buildings that use steam radiator heat. All of the technologies presented include connectivity to smart phones.
The connections forged through the program are starting to lead to concrete results. Radiator Labs co-founder Marshall Cox tells us Metaprop helped him secure accounts with Rudin Management and the LeFrak organization, which are trying out his product in multifamily buildings to see if it could work for them on a bigger scale.
Marshall says the system, which involves custom-made covers that go over radiators, can save landlords 30% on their heating bills. Snapped: Aaron.
Out of 150 applicants, Metaprop selected five startups to go through its 16-week program, which provides training, mentorship and access to potential funders. Metaprop also sinks anywhere from $25k to $250k into its chosen ventures. Future classes will have as many as eight companies, and Aaron says the goal is to help launch 25 companies every year.
So far, it seems to be paying off. Aaron tells us a total of $6.5M has been raised for the inaugural class. He says NYC is an especially good place to raise money from industry folks who know real estate but may not know the startup world.
“A lot of real estate people want to get into this world," Aaron says, "but they may not have the time to sift through how it all works and they don’t want to get their fingernails dirty in all the details.”
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