Michael Beckerman asked this question to leaders in the CRE Tech industry, to get the perspective from “those that are in it, fighting the fight everyday, in the trenches.” One of the people on that list was Michael Schnabel, Co-CEO and Co-Founder of Capstak, here’s his response on where we are and where we are headed.
Michael Schnabel | Co-CEO and Co-Founder Capstak, Inc.
"I think we're still pretty early in the CRE Tech Cycle, if in fact there is a "cycle?" This industry is large enough, that technology and innovation in the space should not go in cycles any more than innovation and investment in FinTech might. The ecosystem, however, is still quite nascent. Most of the companies in the space are still in the seed stage. As more companies grow, this will create opportunities for mentorship, experienced employees, and partnerships for start-ups. Successful exits will create new angel investors who are specifically interested in this industry.
More M&A (but mostly on the acquisition side). Look out for the multi-billion-dollar real estate tech industry leaders - CoStar, Yardi, RealPage, Zillow, Zoopla, Rightmove, DMGT, News Corp, etc. and the multi-billion-dollar brokerage leaders - CBRE, JLL.
Also, hopefully more Series As, Bs and Cs. Most of the investment so far has been in the seed stage. Investors that are focused on this space like Fifth Wall and Camber Creek should make a difference here. Also hopeful that we'll see more CRE companies establish departments (or at least people) who are responsible for reviewing and rolling out CRE Tech within their organizations. CRE Tech/Data budgets will also need to increase."
To read all 28 responses in the 2017 CRE Tech Sector Outlook read Michael Beckerman’s Blog post or check out the Prezi embedded below.