According to Goldman Sachs, virtual and augmented reality (AR) will become an $80 billion market by 2025, and $2.6 billion will be specifically for real estate. The medium is extremely powerful. About 30% of the neurons in the brain are dedicated to vision, compared to only 8% for touch and 2% for hearing. Over the past week, Zillow announced the rollout of their 3D Home tool, which lets real estate agents show immersive VC views of homes for sale. Read about the startups innovating in this space.
We are thrilled to announce the newest Dreamit cohort, selected from a field of nearly 2,000 pre-Series A startups.
Dreamit UrbanTech Managing Director Andrew Ackerman joined Charlie Stephens (@charlieNYC), a real estate advisor at Cushman & Wakefield, for his “Leaders Live” series of interviews. Stephens has been involved in advising over a million square feet of tenant and landlord representation transactions within Manhattan and across the country since 2009. He has worked with clients such as Conde Nast, ING, Ernst and Young, and many more.
On May 14, 2019, our friends at Lab Ventures Miami are hosting Future of Real Estate Tech Summit Miami
This event brings together investors, innovative startups and leading corporations in the construction and real estate industry. The audience will be highly curated creating powerful networking opportunities with C-level executives from Developers, Owners, Associations, Construction Companies, Multifamily Offices, Architects, Growth Stage Startups, Strategics, Commercial Developers and more. Startups can apply to pitch at the event.
Remix is currently being used by over 4,000 planners in over 300 cities to enable planners to visualize tradeoffs when making urban planning decisions. The startup is attempting to streamline decision-making for city planners, allowing planners to drag and drop changes like re-route bus routes or additional bike lanes. Planners then see in real time how that change will affect other streets and the flow of transportation as a whole. For cities, better planning results in shorter commute times, safer streets, and lower greenhouse gas emissions.
What we’re reading in urban tech, real estate, and construction tech news this week.
Dreamit is designed to help pre-Series A startups with a market-ready product and traction acquire new enterprise customers and raise their next institutional round of funding. Learn more about the day-to-day structure of the program and how it allows founders to scale their companies in a flexible way.
Read our latest UrbanTech newsletter for industry news, funding announcements, real estate and construction trends, events, and more.
According to RE:tech, venture investors deployed over $3.2 billion into real estate tech startups in November. The majority of this capital went to just three companies. WeWork raised $3 billion, while Nested and PropertyFinder raised just over $120 million each. All other earlier stage real estate tech startups split the remaining $34 million of total funding in November.
Dreamit designed Customer Sprints to help startups overcome challenges and accelerate customer acquisition. Over 50 “startup-ready” corporates that are eager to purchase and pilot early-stage technologies from pre-Series A founders make up Dreamit’s Customer Network.
Cherre, a real estate data platform that completed Dreamit UrbanTech in 2018, announced a $9 million seed funding round led by Navitas Capital. Cherre provides large enterprises, insurance companies, banks and investors with a platform to collect, augment, and resolve property data in real-time from thousands of public, private, and internal sources, allowing them to evaluate investment and underwriting opportunities more accurately and efficiently than ever before.
Andrew Ackerman sits down for a brief interview with Atlanta-based 3Ci CONNECT at Built Tech Week to discuss the Dreamit UrbanTech program.
Dreamit UrbanTech Managing Director Andrew Ackerman (@andrewackerman) speaks about the current state of real estate tech and venture investing with with Michael Beckerman (@m_beckerman) of @DiscoverCREtech, David Goldberg of @CoriginVentures, Jeff Berman of @Camber_Creek, and Ed Walters of Tamarisc Ventures.
The Real Estate Board of New York (REBNY) are hosting a PropTech Challenge and giving startups a chance to win $50,000. This new virtual real estate hackathon encourages the development of cutting-edge solutions to solve challenges faced by today’s leading real estate companies and removes the physical limitations of a traditional hackathon, while creating active mentorship for up-and-coming technology innovators.
Meet the four breakthrough companies were accepted into Dreamit’s growth-focused program for real estate tech and construction tech startups.
Dreamit UrbanTech Managing Director Andrew Ackerman gives his advice to founders in Propmodo about how to create a market size slide that will impress potential investors. Too often, founders present a top-down market size estimate that includes irrelevant pieces of the market and does not include any numbers related to product pricing. Investors have such low expectations from this slide that they often gloss over it during meetings and figure out the estimate themselves.
Dreamit UrbanTech Managing Director Andrew Ackerman talks about the qualities he likes to see when investing in companies, Dreamit Ventures customer immersion program, what separates Dreamit from other venture funds, and tips for impressing investors.
At the Future of Real Estate Tech Summit in Miami, three investors joined a panel to discuss trends in proptech. Michael Beckerman (Founder, CEO of CREtech), Jeff Berman (Partner at Camber Creek), and Andrew Ackerman (Managing Director at UrbanTech Dreamit) are thought leaders in the space and discuss the biggest changes in the market. As the industry grows increasingly aware of the cost and time-saving benefits of real estate technology spurring adoption and boosting sales, investor interest has skyrocketed. In 2017, venture investors deployed over $5 billion in real estate technology, more than 150 times the $33 million invested in 2010.
How big is proptech market? Venture investors sank $18.6 billion into real estate property technology — known as proptech — firms from 2015 to 2017, and more than 25 percent of that came in the fourth quarter of last year alone, according to a report from real estate tech research and marketing agency Re:Tech. In 2017, VCs put $12.6B into the real estate tech sector, with WeWork and Compass leading in terms of funds raised. Softbank invested $4.4 billion in WeWork and $450 million in Compass. United Stated-based real estate tech firms comprised nearly $6.5 billion, or 52 percent, of the venture capital funding raised in 2017.
Real estate giants like JLL, CBRE, Newmark, and others are adapting to a new environment in which they are no longer the primary arbiters of market data in the commercial real estate sector. Tech companies with large transaction volume and innovative data collection methods are offering an alternative. In response, large CRE brokerages have diversified their businesses, rolling out advisory services for their clients and moving into areas like property management that are less cyclical than the data-dependent brokerage side of the business.