Seven characteristics of the best PropTech companies
Relativity, by M. C. Escher, 1953
So what separates the truly exceptional PropTech companies from the rest of the pack? It is a question that many have pondered, and one that requires a nuanced understanding of the rapidly evolving landscape of digital disruption in the real estate industry.
First, the best PropTech companies understand that their success is not just about selling technology. It is about creating value for their clients by helping them solve their most pressing business challenges. This requires a deep understanding of the real estate industry and the ability to think creatively about how technology can be applied to create value.
Secondly, the best PropTech companies are not just focused on short-term gains. They are in it for the long haul and are committed to building sustainable (I.e profitable), scalable businesses that can adapt to changing market conditions. This requires a willingness to invest in talent, technology and infrastructure, as well as a willingness to experiment and iterate until they find the right product/market fit.
Thirdly, the best PropTech companies are relentlessly focused on user experience. They understand that the success of their products and services depends on how well they meet the needs and expectations of their users. This requires a deep understanding of user behaviour and an ability to create intuitive, user-friendly interfaces that make it easy for users to achieve their goals.
Fourthly, the best PropTech companies are agile and responsive to market changes. They understand that the real estate industry is constantly evolving and that their success depends on their ability to adapt to changing market conditions. This requires a culture of innovation and a willingness to experiment with new ideas and approaches.
Fifthly, the best PropTech companies are committed to building strong relationships with their clients. They understand that trust and transparency are critical to building successful partnerships and that their success depends on their ability to deliver value to their clients. This requires a commitment to open communication, a willingness to listen to feedback, and a dedication to meeting their clients' needs. Vitally, these strong relationships provide the distribution needed to rapidly get adoption of new products and services.
Sixthly, the best PropTech companies will build ecosystems with other suppliers. They understand that they are a node in a network, a cog in the enormous real estate ‘system’, and must be able to easily connect with old, as well as new, services. Real value comes from integration. 2+2 can = 5.
And finally, the best PropTech companies will have products or services that are 10X better than the alternative, the status quo. That can offer clear differentiation for their customers, and push them from sticking with ‘the way we do things here’.
In summary, the best PropTech companies are those that are focused on delivering value to their clients, building sustainable, scalable businesses, creating exceptional user experiences, being agile and responsive to market changes, building strong relationships with their clients, integrating with ecosystem partners, and have 10X products or services. These are the companies that are leading the way in digital disruption in the real estate industry, and they will continue to shape the future of the industry for years to come.
So….. is that you?