The Monthly PropTech Review - October

From the largest PropTech venture capital investment seen so far to startups conquering this year's EXPO REAL - we're excited to share the latest news in the PropTech scene.

Within the past month, WeWork has been working with MasterCard to develop new technology that would change workers by the minute for desks, conference rooms, and even food. Instead of the classic monthly or yearly payments for desk or office space, the new system will allow workers to only be charged for the amount of time they actually use the desk.

Currently there are two demos in place: one where workers will “clock in and out” of a rental desk, and the other where cameras and sensors will detect a worker’s presence when they pick up snacks and beverages.

Lastly, WeWork is attempting to help customers design their own offices and develop office management tools. It will be interesting to see workers’ reactions to the implementation of this new technology.

The estate agent Nested raised £36m by Global Founders Capital in their latest funding round. The startup helps you buy a new house before you’ve sold your old one. The recent funding represents Europe’s largest PropTech investment in all of 2017.

In addition, the investment is the third round funding secured by Nested within 18 months, totaling the amount to £47m. With this funding, Nested plans to continue its enormous growth within London, and hopefully soon across the UK.

Within the work environment, it seems like there are only two different office designs that companies may choose from: individual offices or entirely open offices. There is a lot of backlash between both of these designs, but companies, like Microsoft, IBM and General Electric are attempting to diversify office designs, so everyone is as happy and productive as possible.

The new model is a largely open office, but includes team spaces, standing tables, moveable walls, isolation rooms, soundproof phones booths, and even lounges that forbid technology. The design is meant to be tweaked as workers want changes. Lastly, the new design is not focused on looks, like many young Silicon Valley Companies. Instead, they are adapting their offices to the spread of internet-era digital technology into every industry.

With 2018 looming ahead, these PropTech startups will disrupt and improve the way we buy, rent, sell, design, construct and manage residential and commercial property.

1. No Agent is a digital property management platform that combines marketing and administrative technology with customer service provided by property experts. So far, the company has raised £1.5 million in crowdfunding and from private investors and is gearing up towards a Series A round in 2018.

2. Clixifix allows housebuilders and commercial contractors to manage their customer care operations through an online portal that tracks defects and repairs new houses and commercial buildings. They have raised an undisclosed six-figure sum in 2016.

3. Reposit provides tenants a more affordable way to rent offices by providing six weeks worth of cover to the landlord for damages, unpaid rent, cleaning costs and other charges associated with security deposit deductions. The startup raised a seed investment of £400,000 in 2016.

4. Seeable creates augmented reality and virtual reality visualization apps using high-accuracy mobile mapping techniques.

5. Pavgen produces flooring that can generate renewable electricity by converting every footstep into electricity through a flywheel mechanism.

As the MIPIM PropTech Summit in New York City came to a close, attendees concluded that data should not be seen as a threat by real estate experts, but instead, as a crucial component companies must use to serve their clients. Among speakers and attendees of the Summit, there was a consensus that there are two fundamental elements driving the PropTech industry: user experience and data and analytics.

The real estate industry is switching their focus away from buildings to people that work and live in the actual buildings. Therefore, real estate should be a service, not a product, which is done through technology. 

The UK PropTech Association and property lending platform LendInvest have partnered to search for the world’s most influential people in PropTech. The LendInvest PropTech Influencer List will acknowledge 25 people that are influencing and changing the property market.

Last year’s winner was James Dearsley, who is a contributor to Estate Agent Today and a judge at this year’s competition. Nominations are open to anyone working in or contributing to PropTech in the UK and overseas. The last day to vote is Friday November 3 and the top 25 will be revealed on November 30.

Two weeks ago EXPO REAL, the most important exhibition for real estate and investment in Europe, took place in Munich from October 4 to 6, 2017. This year, we at Setting.io had a first-hand look at the exhibition and recognized a significant step forward incorporating new and innovative thinkers through the REIN initiative. However, we still experienced a conference that was dominated by the same type of personalities and major corporations. Read more about it in our review.