“Real estate and its adjacent industries are broadly behind in technology adoption, so many investors look at the space as low-hanging fruit,” says Constance Freedman, managing partner at two-year-old real estate-focused VC firm Moderne Ventures.
Brendan Wallace, co-founder of Fifth Wall, another newish real estate-focused VC firm, echoes the sentiment, observing that “real estate has been a tech laggard.” The industry seems to be in catch-up mode lately, however, and Wallace says he’s seeing “an explosion of companies trying to solve pain points.” Those solutions include improving how buildings are designed, managed and financed.
Sure, there have already been some multi-billion-dollar businesses like Zillow and Redfin that brought online, mobile and data analysis capabilities to the industry. But real estate VCs believe that it’s still very early innings.
Here are some of the areas where we see significant seed and early-stage funding activity.