At its core, the idea behind a startup is simple. It’s a business that is in the earliest stages of its operations. Oftentimes, it is financed directly by its founders, although they usually actively seek outside investors and founders.
Some of the biggest companies in the world began along these lines. Airbnb, Facebook, Instagram, and others all had the “startup” moniker at one point. They were able to grow and evolve because they were young and exciting. They presented fresh, new ideas to the industries they were targeting.
The same is often true in the world of real estate. At any given moment, there are eagle-eyed companies ready and waiting to come in and disrupt what we know to be true about the industry in the best possible way. Right now, there are a few key startups making waves in real estate, all of which are worth paying attention to in the new year and beyond.
By far, one of the most interesting startups making waves in real estate today is an Indianapolis-based tech company called DealMachine. Dealmachine ranked #36 on Inc 5000’s list of fastest-growing companies in 2021, bringing in a yearly revenue of $12.9 million within their first four years in business. It stands out because of its disruptive approach, particularly regarding things like wholesale real estate.
At its core, DealMachine is a platform built to streamline the property prospecting process. It leverages not only artificial intelligence but also powerful data analytics to benefit users. People can quickly and efficiently identify lucrative real estate opportunities quickly and efficiently in a way that was unthinkable even as recently as a few years ago.
Again, think about things within the context of wholesale real estate. To make money, you need to be able to identify opportunities that are viable to both a buyer and a seller. Only by getting the seller to agree to one price and the buyer to agree to a higher one will you be able to generate income for yourself. This doubles the amount of work needed over a traditional real estate investment. Any opportunity to simplify that process and make it more efficient is worth taking advantage of, and DealMachine goes a long way toward accomplishing that.
DealMachine also sports a user-friendly interface, further simplifying essential tasks like lead generation and management. Overall, it’s a great way to empower real estate professionals to optimize their workflows (and their revenue) as much as possible.
Matterport is a real estate startup specializing in virtual reality – a technology that has impacted the field for many years. It became especially important during the COVID-19 pandemic when in-person property showings essentially became impossible for a period of time. The goal of a showing is always to help people visualize what it might be like to inhabit a space. Thanks to VR, it’s easier than ever to do that without being there.
Matterport uses VR for virtual property tours. People can explore properties in a way that is both immersive and interactive. Even though the pandemic is thankfully winding down and in-person showings have become the new norm again, this is still key. If you’re planning on moving across the country, you still want to feel confident in the place you’ve chosen to live. However, it isn’t necessarily in the budget to make constant trips back and forth to see a home with your own two eyes. Now, virtual reality allows for the next best thing. For real estate professionals, it also increases the size of their target audience to practically anyone, regardless of where they currently live.
Over the last two decades, social media has evolved from a simple novelty into one of the dominant forms of communication on the planet. Sites like Facebook and Twitter/X have literally billions of users between them. It’s changed how we interact, keep in touch with our friends and family members, and even how we work.
That’s what makes Fractional a worthy inclusion on any list of the tech startups making waves in real estate. It’s a social media platform that allows like-minded individuals to co-invest in properties. It also acts as a viable way for those professionals to build their network.
Fractional acts as a one-stop shop for people to learn as much as possible about real estate. They can join communities, attend events, and even explore specific projects that may capture their interest. Once they’ve selected a project, they’re connected with others who are eager to capitalize on the opportunity in front of them. All due diligence is handled through the platform so everyone can operate confidently.
In essence, it’s a way to participate in investment opportunities that may have otherwise been impossible. Perhaps you have the money to invest but aren’t sure how or even where to start. Maybe you are great at identifying opportunities but have never been able to raise the money needed to begin. By building upon the principles of social networking as a concept, Fractional acts as a viable way to solve both challenges simultaneously. Moving forward, it will absolutely shift the way we think about real estate investing in a bold new direction.
Innovative Companies Like These are Changing the Real Estate Landscape
Overall, startups like these are exciting because they’re disruptive. As any industry ages, it naturally begins to stagnate. There’s less of a constant drive for innovation and more of an increased demand for profits. Things stay at a level of status. This isn’t necessarily a bad thing – but it certainly isn’t pushing the envelope, either.
However, companies like those outlined above are poised to change all that. These technology-driven ventures exemplify what makes real estate great and the potential of where it is all headed. They push the needle towards greater efficiency, better accessibility, and innovation in reshaping the future of the field.
They’re doing what they should be: leveraging technology to redefine everything from property management to investment strategies to the very nature of the client experience. When you think about how much real estate has evolved in even as few as the last five years, it’s safe to say that things will look dramatically different just five years from now. It’s the companies like those named above that we will all have to thank for that.
Featured image provided by Pixabay; Pexels; Thanks!