EUROPEAN PROPTECH GUIDE – BUSINESS

TRENDS BY YEAR

 

The PropTech ecosystem has experienced annual growth of close to 150% on average in recent years. As indicated in the previous post, the office and residential products are the ones incorporating the highest number of startups (Graph 2). This positive tendency is partly driven by growth in the fields of space analysis and smart building sensorisation – in the case of offices – and by automatic valuation modelling and asset commercialization platforms, in the case of residential.

 

The retail and, to a lesser extent, hotel sectors, on the other hand, are the sectors with the lowest number of startups. These sectors are marked by a higher concentration of players, with larger, more mature companies and a B2B focus, which establishes more barriers to entry for new technological projects.

 

 

“THE GROWTH OF THE SECTOR IN RECENT YEARS HAS LED TO AN INCREASING SECTORAL SPECIALISATION”

 

 

REVENUES

 

In relation to the previous point, we see a higher percentage of start-ups in the retail and hotel sectors have been able to generate their first revenues, with 70% and 69%, respectively. This same figure is lower, 56%, in the residential sector, where there is greater competition, as we have observed in graph 2.

 

 

“SECTORS WITH A SMALLER NUMBER OF DEDICATED STARTUPS, SUCH AS RETAIL AND HOTELS, HAVE A HIGHER PERCENTAGE OF STARTUPS GENERATING REVENUES”

 

 

BUSINESS MODEL

 

The target audience of a startup, either another business or a final consumer, tells us a lot about it and helps us to understand its structure and its business model according to the product in which they participate.

It is noteworthy in this case that residential stands out from the rest of the verticals, with 23% of startups targeting end consumers (B2C or C2C).

In the rest of the market, more supported by large corporations, this percentage is between 5% (hotels) and 13% (retail), in line with the above.

 

top