The proptech landscape is teeming with opportunities, but breaking into the real estate market requires more than just a great idea. Startups must navigate a complex environment where technology meets tradition, and where innovation can either thrive or struggle to gain traction.
To help guide the next generation of proptech innovators, we asked industry leaders to share their best advice for startups developing solutions in this space.
From building robust infrastructures, focusing on customer needs with new technologies, understanding the market intricacies, managing cash flow, or leveraging location and local connections, these leaders provide a roadmap for navigating the challenges and opportunities in proptech.
Building a strong infrastructure
Ran Cohen, co-founder and CEO of BridgerPay
Ran Cohen, co-founder and CEO of BridgerPay, a payment operations platform, outlines the importance of not just focusing on the surface-level aspects of proptech solutions but ensuring a solid foundation that connects seamlessly with the broader real estate ecosystem.
“Developing a proptech solution for the real estate market requires not only an impressive front-end design but also a powerful infrastructure capable of connecting with multiple companies and technologies within the real estate ecosystem.
“This ecosystem includes operational components like property management systems (PMS) and all-in-one platforms. On the other hand, it encompasses price engines and advanced booking systems relevant to short-term rentals. Additionally, integrating payment solutions is crucial for streamlining transactions and ensuring a seamless experience across the entire real estate ecosystem.”
Embracing emerging technologies
Natalia Karayaneva, co-founder and CEO, Propy
Echoing Cohen’s focus on integration, Natalia Karayaneva, co-founder and CEO of AI and blockchain-powered real estate platform Propy, says the importance of focusing on the customer in all technological developments.
She advocates for using technologies like AI and blockchain to address the real challenges faced by customers.
“All proptech startups should think about the customer first. Whether they’re buyers, sellers, agents, or investors, solving their problems should be top priority,” she says.
“The sector is highly regulated all over the world, and I think that new-age technologies such as Web3 and AI are the key to any viable and positive change. Companies should be brave in implementing this technology.”
Understanding market complexities
Hans-Christian Zappel, CEO and co-founder of IMMO
Hans-Christian Zappel, CEO and co-founder of IMMO, a tech-enabled platform providing data on potential housing investment opportunities, brings attention to the challenges of entering the real estate market, which he describes as one of the most difficult sectors to disrupt.
“The real estate sector is notoriously difficult to successfully break into, so it is crucial not to underestimate the difficulty of the task at hand,” Zappel warns.
“There is a reason it has remained one of the most undisrupted industries to date. For startups seeking to focus on developing proptech solutions, one key piece of advice is to ensure that you have a range of real estate industry expertise within your team.
“Having this insider knowledge will enable you to understand your potential customers and their needs. This is essential for developing relevant solutions and maximising your chances of success.”
Focused solutions and cash flow management
Annie Fleming, business advisory director, Johnston Carmichael
Annie Fleming, business advisory director at UK accountancy and business advisory firm Johnston Carmichael, also advises startups to focus on solving specific problems within the market rather than trying to tackle everything at once.
“My advice to proptech startups is that they must tackle a genuine problem, and really understand what their customers are looking to do. And think about how it will work further down the chain. How does the solution you are offering a customer help them with their customers? From the outset, it is crucial to focus on the best business model.
“Cash flow is a challenge for all innovative firms implementing new technologies and particularly so in the property sector where there can be a huge time delay between a property going on the market and completing. It is essential to consider not only how to be flexible around cash flow for your customers but also how your business can maintain cash flow. It’s a fine balance. It is important that startups don’t try to do everything at once. Focus on one problem, fix it and build out the business at a later stage.”
The importance of location
Marcus Rader, co-founder and CEO of Hostaway
While others focus on infrastructure, customer needs and market understanding, Marcus Rader, co-founder and CEO of Hostaway, a proptech property management software for the global short-term rental market, reminds startups of the enduring importance of location in real estate.
“The three most important factors in real estate are – location, location, location,” Rader asserts. He points out that real estate is fundamentally a local business, even when building a global solution.
“If you’re building a global solution, you need to be able to slice and dice the market into the right segments. Nobody in this industry will deal with partners they don’t know or aren’t close to, so you need to ensure you have or can built the connections needed to become local, globally.”
The post Proptech Startup Success: Leaders at IMMO, BridgerPay, Propy & Hostaway Share Their Advice appeared first on The Fintech Times.
