Proptech: These Startups That Are Reinventing Real Estate

Proptech: These Startups That Are Reinventing Real Estate

11:04 AM, June 11, 2022

Will investing in real estate soon be as easy as ordering a VTC? In any case, this is the promise of the “proptechs”, these start-ups that introduce innovative products or new models to the stone market. Evidence of a market growth that is still in its infancy a few months ago: In 2021, the sector raised 44 fundraising rounds with more than 628 million euros raised, according to Maddyness. “Proptech is a very heterogeneous segment that aggregates all real estate deals, from financing through online brokerage to construction, including new custodians with penetration rates ranging from 1 to 10% depending on the type. Steps, Deciphers entrepreneur and article writer Robin Rivaton, author ofreal estate tomorrow (Donod). The people working today are serious players with profitable businesses. We came out of the bubble stage with so many chests that we didn’t know if they would survive. »

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Apps facilitating rental investment in particular are increasing, spurred by low interest rates and the Pinel system (which allows you to take advantage of tax benefits in the event of a new purchase, and will expire in 2024). After Mastos, which raised 15 million euros at the end of 2021, Benstock has just completed a funding round of 12 million euros. These start-ups, which simplify the life of investors (real estate search, financing, business, rental management, etc.), finance themselves through a commission on the price of the property. Main target: young people who live in the Parisian capital without having the ability to become owners there. By joining forces with other startups that provide complementary services, these players are adapting to the digital habits of new generations, who are accustomed to managing their lives from their smartphones. For example, Masteos has partnered with Pretto to help its clients find credit, with Unkle for unpaid collateral, with Luko Insurance or with Homeland for trustee management. Since the start of 2022, six of these startups have raised funds: 3 million for a student housing developer roof project, 4.5 million for the renovation site manager, Placehaker, and 1.4 million for the low-carbon construction platform Kompozite.

‘Big savings potential’

Making the buying or renting process smooth and easy is the motto of these new players, such as Virgil, who offers to participate in the purchase of housing by young families whose contribution will not be enough. In the same spirit, Garantme, a digital rental escrow solution, manages the contract from the ground up and puts in place procedures to support the tenant in the event of unpaid bills. Proptech companies are also preparing to cut distributor services from real estate agencies, which are already competing with individual sites (Le Bon Coin and PAP). The new Hosman real estate agency, for example, takes care of 100% of the sale of the house thanks to a single consultant who manages the file, from the estimate to the signing of the notarial deed, including creating an advertisement or writing visit reports … all for a lump sum of 5900 euros. “These companies are surfing on passenger replenishment with generating effects, but customers are expanding because many people today are tempted by the potential for big savings.”Robin Rivaton analyzes.

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Other apps are trying to reinvent the second domestic market, which has been thriving since the Covid-19 crisis. Such is the case of Prello, a startup created in August 2021 that buys, refurbishes, furnishes and resells properties in several parts through a Civic Real Estate Corporation (SCI). Digital technology makes it possible to “tokenize”, according to the dictionary of these new entrepreneurs, that is, to separate parts of a building or house into several parts. This mechanically reduces the entry ticket needed for the investment. Lots of innovations that can have positive impacts on the entire sector, as summarized by Robin Ryvaton: “Real estate professions make a lot of money because of often low customer satisfaction, and the fact that buying or renting acts are not frequent reinforces a form of inertia. Proptech is good for the industry by bringing a little competition and innovation to the sector.”

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