PropTech Conference 2018

Thank you to all our speakers & guests for making the conference a real success! Please find the follow up materials, photos and our views below.

Global research shows both innovation and fundraising dedicated to innovation in Real Estate is in significant growth.[1] PropTech is entering into a new wave, becoming more mainstream, better understood and therefore easier to attribute real value. Talis Capital has made a number of investments in both PropTech as well as other software solutions with property market applications. On 16 Nov 2018 Talis Capital hosted their conference as a platform to discuss how technology, innovation and digitalisation are transforming Real Estate and the world we live in.

Real Estate is valued globally at around $229 trillion a figure which exceeds the global value of equities and securitized debt by $79 trillion. We are seeing explosive investment growth as Global Investment in PropTech start ups tripled from 2016 to 2017, rising to $12.6 billion from $4.2 billion1.

Across the world in 2017 we saw the rise of Megadeals in real estate technology from the likes of WeWork, Compass and Offerpad in the US to China with Xiaozhu and the UK with LendInvest & Nested[2]. Who have mostly gone on to raise significant rounds this year e.g SoftBank’s $3bn investment into WeWork, Lendinvest’s $40m pre IPO round and $120m for Nested from debt finance as well as equity cheques from Balderton & Northzone[3].

Property is one of the largest asset classes in the world and covers a broad range of subsectors. New entrants into the market are taking advantage of revolutionising how players interact along the real estate chain - focusing on curation, financing, ownership, autonomy, AI and big data to maximise yields, capitalise on efficiencies and create new products and services.

We see real opportunity in the sector and look forward to continuing to invest in exciting technologies in this space as well as helping our current PropTech companies to scale.

Click here to download the slides and research presented and the programme brochure.

[1] Source: MetaPropGlobal proptech confidence index
[2] Source: Real Estate Tech Annual Report 2017
[3] Source: Pitchbook 2018

Talis take on venture opportunities in Cyber Security, PropTech and InsuranceTech

Cyber Security

While many segments of the technology market are driven by reducing inefficiencies, automating processes and increasing productivity, cybersecurity spending is driven by cybercrime. We have reached unrivalled levels of cyber attacks which are in turn generating a huge number of opportunities in the space:

Cyber Security is now one of the fastest growing areas of Venture Capital thanks to the billions spent on cyber-security annually and the constant stream of major hacks and leaks hitting the headlines

 Cyber Security Funding 2013-2017 : Source: CB Insights

Cyber Security Funding 2013-2017 : Source: CB Insights

The depth and breadth of the cyber security market is now so vast, the potential of identifying the next wave of start-up success becomes ever more challenging

Cyber Security 1.png

Talis has identified several segments of the cyber security market that are poised for significant growth:

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Prop-Tech

Property is one of the biggest asset classes and is considered to have one of the lowest risk profiles. Technology is now disrupting the dynamics of this industry and generating higher yields

 Prop-Tech Annual Global Financing History 2013 -2017 : Source: CB Insights

Prop-Tech Annual Global Financing History 2013 -2017 : Source: CB Insights

A number of trends in property are emerging:

  • The demand for flexible working space is creating a new breed of property-companies which are pushing up property valuations they take over and providing op-co opportunities

  • Long lease rentals have been preferable due to the hassle of short-term leasing. Technology now facilitates easy, efficient and high-yield short-lease rentals

  • Technology innovation allows dis-used / rundown property to be re-purposed cheaply, without changing its use - generating high returns (Currently 500 hectares of empty or under-utilised industrial land across London alone – the equivalent to 750 football pitches)

As a result, investors are pouring money into prop-tech start-ups:

The Proptech market is now expansive: Early application of technology in property revolved around the most visible uses: automating manual processes, improving work efficiency and web-enabled marketing. Recent trends – the sharing economy, crowdfunding, uber-isation, social media and mobile are developing entire new segments within it:

PropCyber Security is now one of the fastest growing areas of Venture Capital thanks to the billions spent on cyber-security annually and the constant stream of major hacks and leaks hitting the headlinestech 2.jpg

The Talis team has identified several buoyant areas of the proptech market that are brimming with confidence and have a wealth of innovative startups:

Proptech.png

Insurance-Tech

The incumbent insurance industry is rife with old, legacy, labour intensive companies. Insurance is undergoing a monumental shift –A fifth of European consumers stated they would buy banking or insurance services from companies like Facebook, Google, Amazon or Apple. (Fujitsu, 2016 survey)

Tech companies including Google are significantly increasing their investments and partnerships in insurance, showing the desire to enter and dominate this old conservative industry

 Insurance-Tech Annual Global Financing History 2013 - 2017 : Source: CB Insights

Insurance-Tech Annual Global Financing History 2013 - 2017 : Source: CB Insights