Real Estate Technology - Threat or Opportunity? The Future of RealTech (Taronga Ventures)

Summary

• Direct real estate capital allocations doubled from $166 billion in 2012 to $320 billion in 2016.p.10
• Venture capital funding into RealTech companies grew 1200% from $221 million in 2012 to $2.6 billion in 2016.p.10
• RealTech VC investment levels could reach $20 billion annually by 2020 if recent growth rates persist.p.11
• The count of active global RealTech investors increased steadily from 110 in 2013 to 243 in 2016.p.11
• Global smartphone subscriptions are expected to expand from 2.6 billion to 6.1 billion by 2020.p.16
• Millennials are projected to comprise 75% of the global workforce by 2025.p.17

Key insights

1. Venture capital funding in the RealTech sector experienced a 1200% increase between 2012 and 2016.p.10
2. By 2020, annual investment volume in RealTech companies could reach $20 billion, rivaling annual FinTech funding levels.p.11
3. Mobile internet usage surpassed desktop usage for the first time in November 2016, reaching 52% of total use cases.p.16
4. South Korea and Australia lead globally in smartphone ownership rates, standing at 88% and 77% respectively.p.16
5. Millennials overtook Gen X to represent one-third of the workforce in Australia and the United States in 2015.p.17
6. Over 74% of millennials report that new technology makes their lives easier.p.17