I am back from a week in Los Angeles and I’m still buzzing from all of the excitement. L.A. is a city that’s bustling with energy coming from the media, arts and entertainment sectors, massive amounts of new development and a thriving tech scene. And now, it’s really becoming a hotbed of commercial real estate tech activity. I spent the week meeting with many exciting startups and entrepreneurs and the culmination was our annual CRE // Tech event in L.A. My head is STILL spinning!!!
This is the third of a series of blog posts on a topic that has always interested me… startups and investors.It’s such an interesting dynamic, probably unlike any other in the business world. They both need each other. But often the money part is the least important. Just follow the recent Uber news about the struggles of their Board and Founder and you will see how things can turn out if the goals between investors and Founders aren’t aligned.
As a follow up to my blog last week about how I personally think Hustle is the key ingredient you want to look for in a Founder of a startup, I asked the best real estate tech investors I know what they look for in evaluating an entrepreneur who is raising money. Of course, it's never as simple as just looking for "one thing", and almost all of these professionals do tremendous due diligence on every deal, but what I was most curious about were the intangibles.
I had a great time at my recent Talkshop Live with Turner Levison of CommissionTrac. Really great interview with a passionate Founder. CommissionTrac is the type of product that will do well in this market cycle. Solutions that make professionals more efficient. From paper to digital. From snail-pace to real time. Actionable intelligence. In my opinion, this is what will be successful in the CRE tech space. And Turner is on this big time with his product.
I have a confession to make. I love WeWork! Always have. I think it’s just about one of the coolest startups I have ever seen (although I think they are far from actually still being a startup). I LOVE the concept.
I have been writing and speaking a lot lately about how I think we are in a period of consolidation, M&A and partnerships in the CRE tech sector. It just makes sense that as the sector matures and more and more industry professionals begin to embrace tech, they will migrate towards the platforms that create the smallest barrier to entry and the maximum number of solution points.