PropTech Insider asked a wide range of proptech CEOs, venture capitalists and other influencers about what’s in store for the industry in 2023. Their answers ranged from a continued heavy focus on ESG to a serious dip in venture capital investments to an increase in mergers and acquisitions (M&A) activity, among other prognostications.
The questions asked in late October were: What makes you most excited about proptech in 2023? What real estate sector will proptech affect most? Will startup investment and M&A decrease or increase? And what keeps you up at night about proptech in the coming year?
Respondents could answer any or all of the questions. The hot takes of those who responded follow, edited for length and clarity.
April LaMon, CEO and co-founder, Alosant:
We’re entering a time of increased competition. The market is tightening in many sectors. It’s exciting that developers are going to be looking at proptech to further differentiate their projects.
On the residential side, we are going to see the idea of creating community and community identity in the buying process. Proptech will be an important part of that. Creating branded experiences that live between residential sales and the resident experience will be important as builders and developers aim to cement contracts and reduce the rate of prospective buyers backing out. Proptech will also be vital in accelerating the resurgence of retail post-pandemic by helping create a sense of place.
There will be increased pressure on proptech startups to build sustainable businesses with a clear path to generating a profit. We saw a lot of proptech investments take a tough hit in the last 12 months. I think that’ll put pressure on founders to test their market fit and the willingness of the market to pay for the solutions they are providing. For solutions that have demonstrated a market fit and a strong path to self-sustainment, investments will increase. The appetite to download a growing portfolio of apps that each provide a single solution are losing popularity. There’s going to be more focus on integration and consolidation, which creates a great opportunity for M&As. The appetite in 2023 will be through consolidation through M&As, where proptech companies can achieve greater scale and provide a more cohesive solution to their clients.
By Philip Russo
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