Hardware-based proptech can be better fit for real asset world

Venture capitalists seeking new ideas to back often focus on software-based solutions because these tend to be easier to scale and have fewer potential issues regarding logistics and supply chains.

However, when proptech is being considered, hardware-based solutions are often more appropriate according to Kingma Ma of PropTech1 Ventures.

Talking to Real Asset Insight’s Richard Betts he said that hardware driven solutions are often more appropriate because the real estate, construction and infrastructure industries are under increasing regulatory and consumer/tenant pressure to improve the sustainability of underlying assets.

“It could be in the materials science space, where we’re looking at how buildings can be constructed using alternatives to concrete and steel, which are which are quite polluting,” Ma said. “We’re looking into technologies that can extract carbon from the air, we’re looking into heat pump technologies that can replace gas boilers – all hardware products,” he explained. The increasing tension, awareness and regulatory pressure in these areas means that there will not be any shortage in demand for such products during the next few years.

Founded in Berlin with an office in London, PropTech1 is a venture capital company that invests into mostly seed and series-A companies.

“As an early-stage investment company we invest into companies which generally are making some revenue, therefore have a good proof of concept,” Ma added.

“We’re really looking for startups that can grow very fast and therefore have a brilliant exit opportunity within a decade.”

Click on the video to watch the full interview or listen to the podcast below.