The commercial real estate tech market is one of the most difficult to break into, maintain and achieve high status in the startup ecosystem.
According to CRE // Tech’s 2016 Year End Report, funding in CRE Tech declined for the first time in five years with the majority attributed to just a handful of startups. The average funding round in 2016 was over $16 million. In New York City, 20 percent of CRE Tech companies are headquartered and account for 25 percent of funding while the average CRE Tech startup with venture backing raised just $1.95 million over two fundraising rounds in 2016.
Overall, the report analysis found a number of key trends including an emergence of support ecosystems, technology firms are growing globally, and there’s an increase in partners, and mergers and acquisitions. During the last 12-24 months, new incubators and accelerators have been designed to help founders.
Here are five CRE Tech startups to watch in NYC.
AtlasX: Deal management software for commercial real estate acquisitions and dispositions. The software allows you to automate data entry and reporting with a powerful, yet easy to use platform. CEO and Co-founder, Anthony Dominguez, a self-taught programmer, has worked on over $1 billion in transactions on behalf of public REITs and private developers in New York.
Cadre: Raised a whopping $50 million in Series B funding in January 2016. Investment platform connects individuals and institutions to fully vetted, real estate investment opportunities.The platform differs from traditional fund or REIT model by offering an increased investment-level transparency and discretion, lower fees, and a more flexible commitment structure, according to their website.
Makespace: Pick up, store and delivery for less than a typical self storage unit price. Plans start from $59 to $199 per month. The company provides durable bins, wardrobe boxes and tape. Online photo inventory can be managed in an the app. The company raised $17.5 million in Series B funding in February 2016. Available in Manhattan, Brooklyn, Queens and New Jersey neighborhoods.
Managed by Q: Strives to make facilities management easier from catering to pest control in your office. Launched a private beta of Q Marketplace in 2016 and are building platform that’ll integrate with third party hardware and software to create an operating system for working world. Raised $25 million in Series B funding in April 2016 and $30 million in Series C in December. Customers include Staples, SeatGeek, BarkBox and Flatiron Health.
VTS: Merged with Hightower for $300 million in November to form the industry’s leading cloud-based leasing and asset management platform. VTS raised $55 million in Series C funding with Insight Venture Partners as its top investor. Hightower raised its last round of funding, $13 million Series B, in May 2015. The company boasts its comprehensive market intelligence platform and custom reporting.