Institutional Investor Interest in Real Estate Tech Companies Continues to Accelerate

We are seeing an increasingly diverse array of investors take sizable positions in companies that are solving problems across the real estate value chain - from agents to lenders to borrowers.


An Inefficient Market, Ripe for Disruption

Real estate transactions have been conducted the same way for the last half-century. It's a multi-hundred billion dollar market annually that relies on middlemen and several discrete manual processes to complete a single transaction. However, in the last five years, the market has begun a dramatic shift, with the emergence of online marketplaces and SaaS solutions. Software providers that can create more efficiency have enormous value potential and are raising growth capital.


Software Adoption Is Increasing Throughout the Value Chain

At the front-end, Zillow and Trulia have enabled homebuyers to search, discover, and research properties without a broker’s assistance. Because of this, the front-end of the real estate transaction process has already changed significantly and will continue to evolve further. Similarly, the mortgage process has become much more streamlined by companies like Loan Depot, and Quicken Loan’s “Rocket Mortgage” product. Finally, the back-end of the real estate transaction process is now beginning to evolve thanks to companies like Solidifi, RealMatters, and Notarize, who are automating processes, reducing human error, and cutting down the amount of paper in the transaction.


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