Funding Sources for Real Estate Startups
There was a recent article on Inman, stating that $1B has been invested in the real estate sector — and listed many of the startups that had attracted venture capital, and some of the firms behind them.
Related, an entrepreneur asked me the other day which people or firms he should reach out to if he goes down the path of raising capital.
The point being, finding potential investors and closing capital is a large challenge for many real estate entrepreneurs.
As a founder in the real estate vertical, where should you start your search?
It’s no secret, your best investor leads will come from investors who already know and trust you, or from investors who you get introduced to by from existing trusted friends.
It’s also no secret, that most entrepreneurs don’t have a large network of connections of wealthy investors to tap.
There is, of course, Second Century Ventures, which is the investment arm of the National Association of Realtors.
Aside from that, I would focus on speaking to the venture firms that have backed other real estate tech startups. You can find those investors by using Crunchinator (prior coverage).
Sorry, I don’t have all the answers. Happy fundraising!
Todd A. Shipman
Posted at 05:31h, 20 MayDrew – I think you will see more investment from Second Century in the future. The REACH program has proven to be a success and it serves as a model for investment in our industry. I would also consider a nod from Realogy FWD as the basis for an investment. Richard Smith said at T3 that disruption is important. I hope KW and BH are paying attention. Brokers need to have an Innovation Strategy AND a Data Strategy – or they can let the future happen to them.
Sam DeBord, SeattleHome.com
Posted at 15:14h, 21 MayI’m really interested to see what Second Century/REACH does going forward. There’s a lot of great backing there with real core knowledge of the industry.
Drew Meyers
Posted at 15:19h, 21 MayThe challenge, is they can’t invest in startups focused on the listing due to the conflict with realtor.com.
And that is the hook every b2c needs to focus on.. https://geekestateblog.com/hook-entire-real-estate-industry-revolves-around/
Sam DeBord, SeattleHome.com
Posted at 15:35h, 21 MayAha. Good point.