Real estate technology has radically affected our way of life and travel, but the real estate industry has successfully resisted most attempts at innovation.
Potential homeowners can qualify for mortgage loans from their mobile phones, but until there are no more businesses to help them find an affordable apartment or properly plan the largest purchase they will ever make, proptech cannot create optimal value for consumers.
Following the success of startups like Airbnb and smart home players like Google, Amazon and Samsung, investors are “looking for good ideas and quality execution,” say Jake Fingert and Lionel Foster of Camber Creek.
“Starting a business is difficult, but now we have a path for proptech that is lined with financiers and consultants who can encourage entrepreneurs through early barriers to maturity and deep market penetration.”
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In the article, which they describe as “a call to current and potential proptech entrepreneurs to solve problems close to home,” the authors identify eight issues that founders and investors should focus on, along with an estimated TAM for each occasion.
“What you want as an entrepreneur is financiers who nod in line with your proposal before you even have a chance to complete it,” Fingert and Foster write.
Because housing accounts for as much as 18% of the U.S. economy, “these are problems that anyone can understand. More entrepreneurs should call proptech home. “
Thank you so much for reading,
Walter Thompson
Senior Editor, Root Devices +
@your protagonist
How I overcame my pregnancy as the founder of the A series
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When Kelsey Mellard, founder and CEO of the Sitka telehealth platform, found out she was pregnant a few weeks after raising $ 14 million in Series A, she was faced with several decisions.
How would you communicate the news to your management team and employees? What was the best way to plan her transition to maternity leave?
“Although the experience is very different and there is no‘ right ’way to go, I want to share what worked for me when I was a pregnant founder and CEO,” says Mellard, who has his pre-departure checklist and transition plan. shared with Root Devices +. .
“My investors decided to bet on me,” he writes. “Now my birth will become part of our new game plan and they understood that.”
Use chronological scenario planning to help your start-up overcome a potential recession
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People who burn firewood to keep warm over the winter know how to calculate how many strings they will have to cut and fold. However, devising a hibernation strategy to start is a less simple process.
In this environment, entrepreneurs should build decision trees that can help them manage the 36-month runway, recommends Gaetano Crupi, a partner at venture capital firm Prime Movers Lab.
The three-year forecast “is a more appropriate time frame to gather more information so you can slow down even more (with money to spin) if things get worse in 12 months, or speed up if things get better in 18 months,” he advises.
Fia Jones of Astrix Astronautics on attracting Peter Beck to start her launch
Image credit: Bryce Durbin / Root Devices
In 2019, Fia Jones approached Peter Beck, CEO and founder of Rocket Lab, with an invitation to discuss her idea for a revolution in the way we power satellites. At the time, she was a 19-year-old physics student at the University of Auckland.
Last month, Rocket Lab launched a cubesat created by Astrix Astronautics, co-founded by Jones.
Once installed, the unit will capture 200 watts of power, which can provide cheap power for constellation satellites.
“For other founders, I’m not saying we should chase another CEO in our industry. But I think it can help if we have an expert in the field or someone who has the credibility and strength to support them, ”says Jones.
Adjust your technology string properly to withstand the recession
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Reducing the number of employees is often the first place where founders look for savings, but it can’t hurt to take a closer look at their technology fund.
Start-ups do not have a formal purchase process at an early stage, which means that companies that grow on a large scale pay for unused software licenses or automatically renew contracts locked at high prices.
“The question is not whether it’s waste or inefficiency, but how much,” says David Campbell, CEO and co-founder of Tropica. In this article, he shares three ways to estimate startup software usage.
VCs should not replace risk management with non-funding from different founders
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In 2021, black entrepreneurs received a record amount of venture capital, but since the recession began, they have seen a significant decline, Root Devices reporter Dominic-Madori Davis noted.
Investors paid $ 1.2 billion to black founders in the first quarter of 2022, but funding is only $ 324 million this quarter.
“Our allies and communities need to be part of the solution by investing in our businesses or becoming paying customers,” says Kerry Schrader, co-founder of Mixtroz. “Applause from the side just goes so far.”
Technology companies at a later stage need to work right with their employees: re-evaluate your 409A ratings
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Growing valuation is the ultimate goal for companies of all kinds, but for start-ups intending to endure a period of financial drought, lower valuation could make it easier to hire and retain employees.
“Re-evaluating your 409A is now actually the right thing for your employees, as their equity is not updated with the rest of the market,” says Frederik Mijnhardt, CEO of Secfi.
Your initial platform needs an operational plan
Image credit: Hi Jan Kamps (opens in a new window)
The inclusion of an operational plan in the playground shows potential investors that the founding team has a clear idea of how they will spend the money received, suggests Haje Jan Kamps.
“For most companies, they should include major milestones: product launches, signed partnerships, and sent major product audits, along with other key performance indicators that show adhesion.”