PropTech venture capital firm MetaProp today announced the results of its Year-End 2018 Global PropTech Confidence Index.
The early stage PropTech accelerator and advisory firm, MetaProp produces the Confidence Index twice a year in partnership with the Real Estate Board of New York (REBNY) and The Royal Institution of Chartered Surveyors (RICS).
The Global PropTech Confidence Index is a unique barometer of the real estate tech market’s health from the perspective of the most active PropTech Investors and startup CEO/Founders around the world.
Aaron Block, Managing Partner and co-founder of MetaProp, stated: “Geopolitical and economic volatility have dominated international headlines over the last few months. Unsurprisingly, this uncertainty may be impacting the broader real estate technology investment ecosystem. The good news is that PropTech startup confidence held relatively steady at 7.0 since our last survey. However, readers will notice slightly diminished PropTech investor confidence (now at 7.7, down from an all-time high of 8.7 six months ago).”
“The Global PropTech Confidence Index shows that investor interest in PropTech remains high and a strong flow of pitches is expected to continue or grow in the year ahead,” said John H. Banks, REBNY President.
“That is a positive sign for every New Yorker who stands to benefit from innovation and new solutions to real estate industry challenges.”
Among the Year-End 2018 Global PropTech Confidence Index highlights
- 60% of PropTech Investors plan on making more investments in 2019 compared to 2018, an all-time high and up from 46% six months ago
- 46% of CEOs said it is either likely or very likely that their company will be acquired, go public or have a major liquidity event compared to 28% in Mid-Year 2018
- 32% of Startup CEOs forecast five times growth in 2019, up from 24% in Year-End 2017
- The average number of PropTech investments increased to 5.0 in Year-End 2018, up from 2.7 in Year-End 2017
- 27% of Startup CEOs expect it to be harder to raise venture capital in 2019, up from 17% in Mid-Year 2018 but still down significantly from 55% a year ago
- 90% of Investors expect to see the same amount or more pitches from startups in 2019, compared to 2018
The survey was designed in collaboration with the Real Estate Board of New York (REBNY) and the Royal Institution of Chartered Surveyors (RICS), using industry leading standards for sentiment analysis and based on a purposive sample of active investors and startups in real estate technology.
The Index is created by analyzing responses to four sentiment questions about future market expectations and has a range of zero to ten. An Index above five indicates that respondents are confident in the market; more responded positive than negative to the survey questions. An Index below five indicates that respondents are not confident in the market; more responded negative than positive to the survey questions. An Index of five indicates that the positive and negative responses were equal.