Investing in Mateo
A lot of the incumbents of the digital platform industry stumble upon the downsides of their own success. Those first generation pioneers were built on the basis of a “minimal common denominator” generating a specific value for different target groups. This leaves space and opportunities for newcomers who better address specific user needs and ultimately cut out entire parts of existing platforms. As a consequence, many of those newcomers don’t just win the market, they even outperform the incumbent (see more detailed insights in Jeff Jordans publication on a16z). Just think about Youtube and TikTok, Craigslist and Zillow or Upwork. Even LinkedIn is getting unbundled by platforms like Hired who just cater to more industry specific needs in the application process.
Another group of incumbents that are at the verge of being unbundled are traditional real estate listing platforms such as Zillow or Immobilienscout24, the biggest European real estate search platform. Those leading online platforms for buying, selling and renting commercial and residential real estate while also providing additional tools for their users. Similar to comparable incumbent platforms their vertical breadth leaves room for new competition from proptech companies:
- Compass reached a 6.4$ bn valuation using technology to redefine how people buy and sell homes in the US. They are now filing for IPO.
- Category specific players like Cadre or Roofstock connecting buyers to commercial or rented single-family homes reached significant growth funding.
- Housing Anywhere became the biggest European rental platform for mid term stays offering more than 60.000 units for rent across 32 cities.
- Belong is a three sided marketplace providing a better experience on the ownership-free community of tenants in the US. They just closed a 40M USD Series B with Andreesen Horowitz and Battery Ventures.
Given that backstory, I’m delighted to announce Styx Urban Investments partners with Mateo, which we see as the AirBnB for long term rentals. Mateo automates the communication between tenants and landlords across the entire lifecycle. Their mission is to build an unique rental experience from the move in process to matters of daily living. With its integrated marketplace for tenants the company provides brands a new access channel for local and online commerce. Ultimately, tenants are delighted by the great and instant service they receive while landlords save cost and time.
Of course there are similar solutions such as Hello Alfred, Casavi, Mynd or local players like Immomio or Everreal. Some of them are more focussing on the tenant side others are more centered around the operational activities of the landlord. So why do we think Mateo will succeed?
- In a first pilot in the Styx Living Lab, Mateo shows the potential to double the number of apartments under management with the same staff by putting incoming inquires on autopilot.
- Instant feedback and additional services create a better rental experience for tenants and makes renting as convenient as an Amazon order.
- Mateo creates a new experience for both sides, not just landlords or tenants. They repair a relationship that has been broken for decades already — at significant costs for everybody.
- The integrated Mateo Home marketplace for local and online commerce allows long term growth potential and brings products and services directly into people’s homes.
We look forward to supporting Mateo’s team in their 240.000€ pre-seed round creating a 21st century rental experience easing the pain of landlords and tenants. Now is the time to bring customer experience to the real estate industry!
