“ESG investing is on the rise”, is a headline one might see frequently these days in the news and across social media. In recent years, attention to ESG (environmental, social, and governance) data has increased drastically, and the share of sustainably invested assets among investors in Europe — the most progressive continent — currently accounts for 21% of total assets and projected to reach 47% in 2025.
The construction and operation of real estate is the world’s largest contributor to CO2 emissions. Due to the combination of public pressure, EU regulations, capital market requirements, and customer demands, sustainability will become the megatrend of the next decades ahead.
Due to the Coronavirus, the real estate industry is facing unprecedented challenges. Failure to optimize IT structures is taking its toll. In many cases, quick digitalization can be a remedy, but not all PropTech segments will benefit equally.
PropTech and ConTech have been growing by 45% annually (CAGR) in Europe since 2014. Financing rounds in the now double-digit millions are evidence of the increasing maturity of the sector.UK is the European leader in terms of financing volume and number of deals. The DACH region, France, Spain, and the Nordics follow behind.
A year ago, we launched PropTech1 Ventures to establish the first independent venture capital fund in German-speaking Europe that focuses on the digitalization potential of the real estate industry, investing in the most promising PropTech startups in Europe.
As a result of increased mobility and an increased emphasis on comfort, the requirements profile of modern users has changed, substantially increasing the demand for short-term rental models. The user experience of the classic rental process is insufficient, which has prompted a large number of PropTech startups to profit from the lack of flexibility in the real estate sector.