What real estate tech CEOs need to consider

The latest in real estate technology

October 25

Policy: The secret ingredient in Biden’s climate law? City trees.
Future forward: What to look for next in climate tech—it's only ramping up from here.
Cities: 'Flexible co-living' could help bring down office-conversion costs and add housing supply: study.

Fifth Wall news

Fifth Wall and many of our Climate focused Portfolio Companies will be at Verge in San Jose, California from October 29th-31st, 2024. Come visit us at the exhibit hall!

3 things real estate and proptech CEOs should be thinking about

Brendan Wallace, CEO & CIO of Fifth Wall sat down with Brad Hargreaves, founder and editor of Thesis Driven. They discuss the state of venture capital markets, what funding opportunities will look like in the next few years, and the impact of decarbonization regulations on real estate assets. Here are a few takeaways from their conversation.

“I think the capital markets on venture are going to get a lot worse, before they get better,” Hargreaves said.

What this means: Public markets need to be open to new IPOs—both the public and private markets have not metabolized the losses that poured through the system. However, on the other side is an opportunity for LPs and real estate tech CEOs.

“What scares me a lot is the ubiquity of Pre-Seed, Seed, and Series A capital and the complete absence of Series B in growth capital,” Hargreaves told Wallace.

What this means: There will be a lot of companies that could be successful, but won’t be able to get the Series B growth capital needed to continue. That will lead to a lot of interesting M&A opportunities in the next two to three years.

“We’ve talked a lot about decarbonization—that’s obviously the elephant in the room for real estate tech CEOs,” Hargreaves said.

What this means: How is your business thinking about the coming climate regulation? What is happening state by state? Part of that equation includes the insurance market which is undergoing a massive change—not to mention the spiking rates taking property owners in Florida, California, and Texas by surprise. The truth is that insurance indicates where we should be building, how we should be building and the true cost of that development—but cities aren’t exactly listening.

STORIES WE READ THIS WEEK

CLIMATE

Cement startup Furno lands $20M grant to build low-carbon micro-kilns in Chicago

OFFICE

Obsolete office buildings could constitute up to 50 percent of all new housing in cities

TECH

New York's Silicon Alley nips at the heels of its West Coast rival

UTILITIES

Can America keep up with AI’s energy appetite in the race with China?

FUTURE CITIES

What it takes to make city solutions go viral

WORTH THE SCROLL

From WSJ: "Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.

In many places the nation’s high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.

A mad dash to lock up available power has ensued."

FUN FINDS

Entertainment: Why new online puzzles can’t clone the brilliance of Wordle.
Career: Be more productive by making better daily choices.
Travel: 9 best countries to live abroad right now.
Development: New York's Champ Elysees is coming.

LAST BUT NOT LEAST

Chart: US sets new record with $71B in clean energy investment

From Canary Media: Last year was a record year for clean energy investment in the U.S. — and this year is off to an even stronger start.

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Forward-looking statements and opinions as to carbon reduction initiatives and real estate markets or any other matters, as expressed in this presentation, are those of the individual presenters, but are not necessarily the views of Fifth Wall as a firm, and cannot constitute a guarantee of future success or profitable results. As a result, investors should not rely on such forward-looking statements and/or opinions, or on anything else contained in this post, in making their investment decisions. Moreover, certain information contained herein may have been obtained from published and non-published sources prepared by other parties and may not have been updated through the date hereof. While such information is believed to be reliable for the purposes for which it is used herein, Fifth Wall does not assume any responsibility for the accuracy or completeness of such information, and such information has not been independently verified by Fifth Wall. This post speaks as of its publication date, and Fifth Wall undertakes no obligation to update any of the information herein.

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