A breakdown of the Israeli Contech/Prop-Tech eco system map
It is no secret the Israeli PropTech/ ConstructionTech sector is attracting vast global investments and attention lately and has become a ‘hot potato’ in the startup industry. As the ecosystem displays a continuous growth, we are already at a staggering number of 120 companies and growing by the day.
In this article, we highlight some of the key figures and metrics driving the Israeli PropTech/ ConstructionTech ecosystem and analyze its growth.
The report is the fruit of a collaborative research by Contech and Innogy Innovation Hub.
A meteoric rise- the success in numbers
It is estimated that since 2015, roughly 900$ Million have been invested in the field, with less than 30$ millions invested before that period- a growth of 3000%.
Though ConstructionTech and PropTech have developed separately in recent years, as with true innovation, we are seeing the borders blur in a process that is changing the way we think and build real estate.
Developers, contractors, planners and investors are all finding themselves a part of the supply chain and therefore create a ground for a vast network of the whole real estate and construction market.
The need: navigating the way in a 15 TR$ a year industry
One of the main challenges facing startups and investors alike is navigating through the vast amount of stakeholders in the construction and real estate world.
While this industry is based on a collaborative supply chain, these stakeholders often speak completely different languages.
As any startup in the field will tell you, one of the hardest tasks of getting a collaboration is locating the right counterpart. With so many different roles and branches, there must be a way to easily outline main branches.
The mapping is meant not only to create a current visualization of the ecosystem, but more importantly, to lay the foundation for its evolution in the future.
After a long process of evaluation and branching, the current map now allowing new companies and startups to easily nest themselves within the ecosystem, allowing not only for them to reach out, but also to be located. Using this segmentation, startups and investors alike will find it easier to create connections based specifically on their field of work.
The map portraits the eco-system with regard to its different sub sectors, taking into account the boarder of construction related and real estate related topics.
The upper part relates to construction and process driven startups merged from the Contech field.
Planning and design, safety, site inspection, advanced materials/building methods and project management/collaboration platforms.
The bottom section is related to real estate driven startups. The categories include: Real estate insurance and securities, real estate marketing solutions, real estate and investment platforms, market places and location based services.
From Lemonade to AR glasses- A colorful mix
The eco system is quite diverse and consists of ventures of various scales. From multi million dollar funding by the word’s largest VC’s all the way to bootstrapped ‘hands on’ startups getting dirty on site. This colorful variety is exactly where the eco system gets its strength from.
Just to get a sense of the rush, we outline a few examples:
One click insurance for home owners
Perhaps the most notable player in the field, size wise, is Lemonade, an insurance service for real estate which uses behavioral economics, AI and chatbots to deliver renters and homeowners insurance policies and handle claims quickly for users across the US.
Lemonade has currently raised over $500 million in four series, the last one being led by Japan’s Softbank Group Corporation, with participation from Allianz, General Catalyst, GV, OurCrowd and Thrive Capital. Forbes has recently valued the venture at over $2 billion.
AI aided real estate deals
Another example of a game changer in the real estate market is Skyline AI, which uses its in -house AI algorithms to analyze real estate deal flows and spot the best ROI opportunities for its investors. So far the company is focusing on multi-family housing in the US with plans to expand to other fields.
Skyline is a medium sized venture in the field and has raised $21 million to date in two rounds.
Augmented reality for construction sites
Sometimes one look from an expert is worth its weight in gold. Clone is a service which allows a synchronized augmented reality collaboration for on site workers with remote experts.
Using their technology, Clone creates an instant 3D scan of the site which is transferred in real time to a VR environment to the other party. This allows the offsite companion to be present inside the augmented reality of the construction worker. Sounds tricky? Clone has recently secured 700,000$ to provide the proof of concept and is expecting to release its commercial application soon .
As more and more startups and investors are joining the game, we are expecting a great increase for 2020 in both the number of startups and investments.
At Contech we continue to provide a diverse support program for all collaborators including our personal incubation program of selected early stage ventures. Stay tuned and get updated with our activities to learn how our ecosystem is disrupting the ConstructionTech /PropTech sector day by day.