Weekly Radar #289: A Resi Roll-Up, Contech Powder
What's covered in this week's GEM Crystal Weekly Radar:
- Will the future of real estate PropTech adoption be driven by agents? Logan analyzes Opendoor's latest partnership with real estate agency eXp Realty.
- Zacua Ventures just raised $56M for a new fund, specifically targeting contech startups.
Geek Estate Blog Recap:
Geek Estate Team
Geek Estate Team
Geek Estate Team
Jonathan Klein
Geek Estate Team
Hannah Gable
Transmission Recap:
In our last Transmission, Drew delved into the long and short of Zillbnb - what Zillow's announcement means for the future of short and long-term rentals. Before that, Drew discussed the Rabbit's 'r1', a compact AI device, as a glimpse into the future of blended hardware and AI...or perhaps just another fad the smart phone makes irrelevant.
REAL ESTATE
A RESI ROLL-UP
By: Logan Nagel
iBuyer Opendoor recently announced a partnership with real estate agency eXp Realty, not unlike ❇️the Keller Williams-Offerpad deal a few years ago❇️. Under the partnership, Opendoor will be the main provider for eXp’s all-cash offering ExpressOffers. iBuyers have faced challenges, including market headwinds and problems establishing a strong algorithm over the pandemic. Opendoor itself last year cut 550 jobs. Presenting its instant cash offers alongside the traditional listing process creates economies of scale by leveraging agents with existing trusted relationships.
This is a proof point that the future of residential PropTech adoption still resides in the hands of agents. PropTech firms with a nationwide footprint can go direct to brokerages/franchises, and MLSs, but that’s not a luxury afforded most early stage companies with limited service areas. As we ❇️move toward agents as wealth advisors❇️, it’s likely a few vertically integrated platforms that offer services from home purchase to disposition and everything in between will sprout. For instance, EasyKnock, a tech-enabled home sale-leaseback provider, recently completed a $28 million Series D round after having gone on a buying spree that included home maintenance, power buying, and co-ownership platforms. Residential-focused companies should keep this growing centralization in mind as they plan their expansion. Does your product truly warrant funding customer acquisition, or will it wind up eaten by a do-it-all tech provider? Partner now, or forever hold your peace.