Finance Monthly October 2019 Edition

ntrepreneurs have recognised this, as have investors. This doesn’t only include VCs: traditional RE companies, as well as RE and Sovereign Wealth Funds, are all looking at how best to take advantage of the array of opportunities. In 2018, PropTech start- ups attracted more than $20bn in early-stage funding, up 32% in 2017 and this is predicted to increase again in 2019 and 2020. The range of start-ups are diverse, but roughly fall into four verticals: • Smart Real Estate - technology-based platforms which facilitate the operation and management of real estate assets. The assets can be single property units or entire cities. • The Shared Economy - technology-based platforms which facilitate the use of real estate assets. The assets can be land or buildings, including all property types. • Real Estate FinTech - technology-based platforms which facilitate the trading of real estate asset ownership. The sector supports the real estate capital markets. • Construction Tech - focused on the ‘built world’, involving architects, engineers, construction firms and facilities managers. Given the scale and complexity of the opportunity these verticals provide, early-stage Real Estate is the world’s largest asset class (worth more than all stocks and bonds combined at c£230 trillion) and the scale of the industry encompasses residential, commercial, industrial and hospitality segments. Yet, despite its scale and complexity, the Real Estate sector has been slow to adopt new technologies and innovation. The potential for PropTech (any innovative technology or business that plays across/within any of the real estate segments) to disrupt the industry is therefore massive. Christina Reti, Senior Client Partner at Korn Ferry, tells us more about it. WHY PEOPLE WILL BE KEY TO UNLOCKING THE PROPTECH OPPORTUNITY E Christina Reti, Senior Client Partner at Korn Ferry www.kornferry.com 24 www.finance-monthly.com FINANCE & BUSINESS - PROPTECH