3 Trends Bespeaking the Future of Proptech

Developments in the early days of 2020 reveal quite a bit about how the year will shape up for the proptech industry.

FREMONT, CA: The proptech industry is experiencing a lot of momentum right from the beginning of 2020. The last decade gave rise to numerous proptech firms. While many of the firms attracted investors and scaled up operations, many slowed down after an initial boom. These ups and downs are expected to persist while the industry enters new phases of evolution. However, trends in the first couple of months in 2020 point at the fact that investors are still upbeat and are ready to invest in innovative proptech firms with promising prospects. Read on to discover some of the trends underlying funding patterns and market growth for proptech.   

Innovations Attracting Greater Funding

The setbacks that some of the largest proptech firms suffered last year have not been able to deter venture capitalists from funding promising proptech startups. Conventionally, venture capitalists focused their attention on app-based service providers in the property domain. But now, there is an increase in investment in proptech companies that solve deeper issues and target anything ranging from building and renting to maintenance and renovation. Niche proptech offerings are expected to get a lot of attention from investors.

Proptech Tackling Relevant Issues

As the issues of environmental safety and sustainability are becoming bigger, the proptech sector is experiencing a demand for relevant solutions. Investors are looking to invest in companies that offer potential solutions to make buildings greener and reduce the real estate industry's carbon footprint. Some of the biggest investors have created dedicated programs to support companies that contribute to tackling issues like pollution and climate-related impacts.

Big Strides for Commercial Real Estate

Industrial, as well as multi-family commercial real estate, has seen quick growth from the beginning of 2020. This growth has fuelled the opportunities for established and upcoming proptech companies. Capitalizing on these opportunities will entitle proptech companies to achieve momentum in the market.

Just as morning shows the day, the recent developments point to a vibrant year ahead for the proptech industry. 

See also: Top Proptech Solution Companies

Weekly Brief