Proptech sector confidence riding high, says MetaProp
Despite a challenging year, the PropTech industry is firing on all cylinders, according to the latest edition of the MetaProp Global PropTech Confidence Index.
MetaProp, a specialist PropTech venture capital firm, publishes the index, which is sponsored by PwC and presented by the Real Estate Board of New York (REBNY) and The Royal Institution of Chartered Surveyors (RICS), twice a year. The Confidence Index provides unique and in-depth insight into the health of the real estate tech market, and offers perspective from PropTech investors and startup founders worldwide.
According to the most recent index, confidence in tis riding high. During the last half of 2020, the Global PropTech Investor Confidence Index score reached 9.2 out of 10 — up from a previous high of 8.8 in mid-2019. Interestingly enough, the pandemic actually turned out to be a boon for PropTech, as technologies were adopted and put to use faster than they would have been otherwise, and investors took notice.
Startup founders are feeling good, too. The Startup Confidence Index is at its highest recorded level to date: 7.7 out of 10. As investors were feeling good, they subsequently invested more over the last six months of 2020 — which thereby increased confidence in startup founders that were benefitting from the influx of capital. The turnaround is nothing short of remarkable: 39 per cent of startups say it will be easier to obtain venture capital funding over the next 12 months compared to the previous year, a dramatic increase from an all-time low of 12 per cent during the middle of 2020.
“The second half of 2020 proved to be incredibly positive for the PropTech ecosystem. As we predicted earlier last year, the PropTech sector continued its rapid growth and maturation, with a flurry of record-setting activity and industry sentiment soaring to new heights. We are excited as we anticipate this trend will continue in 2021, with Covid-19 vaccines being rolled out faster than expected and a more stable political climate,” says Aaron Block, Co-Founder and Managing Partner of MetaProp.