PropTech investors score with quality and industry know-how

Despite numerous macroeconomic challenges, PropTechs in the DACH region are seeing considerable financial inflows. A recent survey conducted by pom+Deutschland on the awareness of PropTech investors shows that money alone is not enough to establish oneself as an investor in the market.

Despite interest rate increases, declining transactions, rising construction costs and tighter regulations, the construction and real estate industry is experiencing a wave of innovation. This is due in particular to the PropTech scene, which set a new record last year with an investment volume in the high triple-digit millions in the DACH region.

A survey conducted in June 2023 on the brand awareness of PropTech investors revealed a growing diversity of funders active in different regions. The 90 real estate executives and professionals surveyed concluded that brand awareness is increasingly important in this dynamic environment. It can be assumed that in the future investors will increasingly deal with branding and marketing in order to expand their own visibility and strengthen their reputation.

Quality and number as criteria for cooperation
Around 42 percent of the participants stated that they knew PT1 – PropTech1 Ventures. The company was rated as a leading investor by the respondents both in terms of overall perception and along individual criteria. Multiple responses were possible. It is followed by Bitstone Capital (approx. 33 percent), BeyondBuild (approx. 26 percent) and High Rise Ventures GmbH (approx. 22 percent).

In the case of interest in a collaboration, the choice of an investor depends on various criteria. The quality of the investments made proved to be important or very important for around 90 percent of the survey participants. The number of previous investments was also rated as important or very important by three-quarters of respondents. Other relevant criteria are the level of awareness, quality (network, industry know-how) and expected returns.

Advice, mentoring and expertise as the most important services
Nevertheless, the survey shows that the market shares of PropTech investors are not solely due to financial support. The range of services and the fulfilment of service expectations are also decisive, whereby the latter differ according to the recipient group: For example, real estate decision-makers primarily expect a good market overview, advice, expertise and a strong network. PropTechs, on the other hand, value capital, business development support, access to resources as well as advice and mentoring.

These findings suggest that expertise, industry knowledge and service quality are becoming more important for PropTech investors to gain competitive advantage in the future. The diversity of investors also highlights the importance of regional expertise.

Survey results at www.pom.ch