Venture Capital and Commercial Real Estate. Redux.

Venture Capital and Commercial Real Estate. Redux.

Almost four years ago to the day.

I sat back and thought about the state of technology and what opportunities I thought at the time would advance this beautiful business. What if I were one of those smart edges of the envelope forward thinking venture capitalist and had money just busting out of my pocket? Where would I look? What problems needed to be solved?

Where are the real opportunities?

Aggregate the potential tenants/users.

Who has yet to face the actual users of commercial real estate? No one to this point. Think of the potential power that group has. How much do they affect the value of the market? How much more could they if they had a true advocate? What an opportunity!

Broker to Broker Apps that are real tools that engage the client/ user and not just analytic tables for brokers to play with.

Four years on and we are just starting to get there. Ironically it’s the increased use of (AI) and automation that’s taking us there.

The building talks markets and sells itself, and I don’t mean without a broker so get off my ass already. Quit looking at you own ass.

It’s here and then some, but we still have more room to grow. How many data points do we now track in a building? How is that data being analysed and used to help manage performance create real value and help sell the asset? Still early times.

All services or related transactions around commercial real estate.

Construction, architecture, engineering, finance, and much more They are all taking leaps and bounds with the use of technology. Finance has EXPLODED into is own scene #FinTech and is helping lead the way.

Put together a true and accurate marketing and data platform. Do not rely on brokers to provide the information.They LIE!

OY, oh how we have still failed miserably at this and no signs it’s going to change in the future. Why rely on an idea and platform created 20+ years ago? No, it does not work!

How about no marketing platform at all?

What did I mean by this? Let the building the data and performance of the actual asset market the property. Why in the hell do we need a billboard website with two horrible pics and three lines of non-relevant data as the showcase piece for such a valuable and dynamic asset class?

Face the user and give them tools to engage and make commercial real estate decisions.

Getting a little closer here but nowhere near what it should be. Why hold that information back? Push it closer to the user and what happens? Better faster more efficient and valuable deals.

If I did find a team ready willing and able to take on these monumental tasks what would they need to show me? How and why and what would it take to get that big fat check out of my hands.

Want my money? Think about this.

Value revenue not just the process.

Value production today. Do not rely on past production.

Build users and revenue.

Show a model that solves a problem.

Resumes mean nothing.

So you failed at your last three start-ups, and you call it experience. I call it a failure. Be a winner.

Create investor confidence. Do not show me examples of companies that only generate revenues of 1% of their market cap. I’m no genius, and I know it’s working in Silicon Valley right now but get real!

Yes, people are the company. The company needs to generate revenue or there will be no people.

Have a true (legal) company structure and plan. Who invests in a dream?

Get out of your own backyard.

Form partnerships.

Build and sell and do nothing else.

Solid points even today.

So why so many failures?

Failures do we in #CRETech admit that there are failures?

Do I need to name them?

(Side Rant) The fucking arrogance that was pervasive just four years ago is astounding now that I look back. You were going to do it your way or the way and model you “borrowed” from other companies doing t-shirts, hats, off sites and triathlon suits. Where in the fuck are they today? The same place your are. IN DENIAL.

How much money did you piss away? How much?

If I would have started my career with kind of money….. Holy Shit! Oh, wait that’s right you are still smarter…even today.

Am I still ranting?

So much opportunity.

Think of the landscape of #CRETech as we sit here today. It is indeed daunting.

If I were that same VC what are just a few areas I would look at today?

Property Management: Technologies which help in the day-to-day operations of a building. Examples would include approving tenants (background screening), electronic payment of rent, and maintenance.

Construction Management: Technologies which help with the construction of new buildings. Examples would include construction visualization, project management, and management of documentation.

Facility Management: Technologies focused on building efficiency and long-term sustainability, from large structures to individual home units. Examples would include quantifying the building (energy usage, water usage, etc.), making buildings more efficient, and building inspections.

Portfolio Management: Technologies real estate investors use to help determine their investment strategies. Examples are property data trackers at the regional and local level, information on REITs, and real estate crowdfunding.

Home Services: Technologies that support tenants in the management of their home. Examples would be cleaning, renovation management, and postal services.

Home/Apartment Search: Consumer tools that aid in the process of finding both short term and long term residences.

Real Estate Agent Tools: Technologies that both help real estate agents do their jobs and technologies that effectively automate it.

Indoor Mapping: Companies that help create indoor models of real estate.

IoT Home: Internet of Things category focused on the residential segment. Examples would include home security, automation, energy management, etc.

We are just getting started.

We have come a long way in just that four-year period.

Just think what the next four or five years may bring?

How about all the money fueling the change?

We need it. We need it more now than ever.

Venture Capital and Commercial Real Estate. Redux.


+1. What will I write about four years from now? I can’t wait to see what that will be.

+1+1 Who will I rant about then? I have a few in mind already.



Duke Long

Add comment