The Impact of Venture Capital Funding in PropTech and its Affects on the Multifamily Industry
This piece stemmed from a session at NMHC’s OPTECH Conference, “Partnering with a VC firm on PropTech? Different Goals, Different Strategies”.
Historically, innovation in multifamily has been said to be slow and plodding, and many argue that is still the case; however, new Venture Capital funding is changing the face of technology startups and creating interesting dynamics in tech adoption within the industry. Some of this funding is unique in that the source of funding is also coming from within the industry, as owners and operators utilize VC funds as a vehicle to both invest in PropTech startups, as well as vet the myriad of options available to them.
The surge in technology startups in multifamily has created an exciting opportunity for improvements across the board in multifamily operations and development, but it also has created a new challenge of sifting through the noise. Enter firms like RET Ventures, Nine Four Ventures, and Moderne Ventures, VC firms who serve both as investment vehicles as well as strategic advisors when it comes to PropTech adoption. Through these funds, owners and operators can indirectly invest in startups within multifamily, but also gain market research and clarity on which startups to initiate pilot programs. Kurt Ramirez, General Partner at Nine Four Ventures, indicated the multifamily industry has been very slow moving from a tech adoption perspective, and as a venture fund, they can speed that process along and improve adoption of new technologies.
On the flip side, PropTech startups gain advantages when it comes to ac……
Historically, innovation in multifamily has been said to be slow and plodding, and many argue that is still the case; however, new Venture Capital funding is changing the face of technology startups and creating interesting dynamics in tech adoption within the industry. Some of this funding is unique in that the source of funding is also coming from within the industry, as owners and operators utilize VC funds as a vehicle to both invest in PropTech startups, as well as vet the myriad of options available to them.
The surge in technology startups in multifamily has created an exciting opportunity for improvements across the board in multifamily operations and development, but it also has created a new challenge of sifting through the noise. Enter firms like RET Ventures, Nine Four Ventures, and Moderne Ventures, VC firms who serve both as investment vehicles as well as strategic advisors when it comes to PropTech adoption. Through these funds, owners and operators can indirectly invest in startups within multifamily, but also gain market research and clarity on which startups to initiate pilot programs. Kurt Ramirez, General Partner at Nine Four Ventures, indicated the multifamily industry has been very slow moving from a tech adoption perspective, and as a venture fund, they can speed that process along and improve adoption of new technologies.
On the flip side, PropTech startups gain advantages when it comes to ac……