55 IN FOCUS
The same platforms would allow the customer to pay rent online, get the receipt, ask questions and carry out other administrative tasks. The customer can interact with the management company, the owner or the neighbors (Syment Luxembourg), as well as temporarily rent out a parking space (PrendsMaPlace) or cellar (Costockage). Customers can report technical issues and follow up on their smartphones (Syment Luxembourg). THE ROLE OF STARTUPS IN ALL OF THIS In a 2016 survey of American corporations (Imaginatik & MassChallenge), more than 75% believe that cooperating with startups is essential, with 25% declaring that it has become absolutely necessary. These huge companies, along with many others, need to keep up with out-of-the-box improvements, which are less expensive and quick to apply, while meeting new market expectations. By working with startups, they tap into new business models, new technology and upgrades for clients. The majority of large French corporations has dedicated programs for startups in the form of investment funds, incubators, accelerators and shared workspaces. Modes of startup support have been diversifying, so they are less in need of new funds. Among startuppers today, only a few strive to be acquired by larger companies. The majority prefer to have just one “low-key” shareholder. They see partnerships as strategic and as a means to reach the market. However, the increased importance of DeepTech may disrupt this approach since technical needs, as well as industrial, commercial and human ones, have become largely more important than PropTech. MOST RECENT INNOVATIONS IN PROPTECH
DEEPTECH REFERS TO TECHNO-SCIENCE PROCESSING. FOR EXAMPLE, KONIKU HAS DEVELOPED A HYBRID SMART-CARD COMPOSED OF A NEURAL NETWORK OF 64 LIVING NEURONS (OR BRAIN TISSUE), WHICH IS DESIGNED TO EXPLORE SENSORY CAPABILITIES OF NEURONS FOR INDUSTRIAL USAGE. All industries are experiencing product innovation and success arises when consumers are attracted by the service or product.
Unicorns in the PropTech segment, therefore, cover a wide area, from online real-estate brokers to property management tools, and from homepages and computer algorithms to online marketplaces. So, are tech companies dipping into real estate or is real estate going digital?
OPENDOOR ASKS OWNERS WISHING TO SELL THEIR PROPERTIES TO FILL OUT A DETAILED APPLICATION FORM, WHICH IS COMPLETED WITH A DOZEN APPLICATION REQUESTS FROM OTHER DATABASES (BIG DATA). THE COMPUTER ALGORITHM IS THEN ABLE TO SET A PRICE WITHIN HOURS. IF THE OFFER IS ACCEPTED, THE OWNER IS PAID IN A SHORT TIME. ON THE SELL SIDE, OPENDOOR FACILITATES THE PROCESS BY ENABLING APARTMENT VIEWINGS 24H/DAY, THANKS TO A SPECIAL DEVICE SENDING A VISITING CODE BY SMS. SIGNIFICANT EVOLUTIONS TO COME According to CB Insights, since 2012 the PropTech industry has raised more than $6.4 billion and funded more than 800 startups. Impressive numbers since this activity was practically inexistent just four years ago. After a KPMG survey in 2016, investment in this field could reach about $20 billion annually by 2020. It is difficult to forecast significant evolutions, especially since the whole real estate industry was lagging behind. (A 2015 McKinsey Survey demonstrated that the real estate industry ranked no. 7 in terms of digitalization). Among evolutions which seem to be unavoidable are full digitalization (as we are still very far from achieving), and the funding process, (as traditional players are still calling the shots). Regarding digitalization, we will start with the digital model BIM for all, which combines building parameters and descriptions of the item used (composition, properties, aging process). This will include the digitalization of all activities (construction works, maintenance, cleaning, improvements etc.) whether manually (izigloo), or through IoT and RFID tags.
There are approximately 20 unicorns in this field, most of which are based in China.
IoT will permit home automation at affordable prices, as well provide statistical data on performance (Vivoka). It will also offer actual consumption and predictive maintenance.
Among the newcomers are Opendoor, Compass (online brokers), Wework and UrWork (dynamic coworking spaces), Homelink (home exchanges), ten-X and auction.com (online real estate marketplaces), SMS Assist (uber-izing house maintenance) and Katerra (end-to-end building services provider).
In addition, environmental data and assessment, such as acoustics, air quality (plumelab), odor measurement (Rubix), solar activity (Solen) and local services in real time (mobility, convenience stores), will be provided. The owner and the tenant will become full contributors into the property surrounding (Syment).
The Startup Magazine