It is already known that the Proptech sector continues in good expansion progress. Not only in terms of companies and startups’ total number but also the exponential increase of clients, whether they are professionals in the sector (B2B) or individuals (B2C). Therefore, there is an increase in the global turnover of the proptech sector. However, a large part is dedicated to retaining or finding talent, marketing, or developing technology.

But what we want at this post is to understand the kind of relationships that exist within the proptech ecosystem (at least the Spanish one), full of different enthusiasts and investors. Some of these relationships are:

  1. Competition: Logically, there is competition, whether well understood or not, among those companies that carry out the same service or cover the same customer needs, whether professional or final client. Although it is also typical in these technological sectors that the competition is well understood, that the CEOs know each other and there are “good vibes,” understanding the need for everyone to grow, the famous “Growth.” It is normal that between Idealista and Fotocasa, there is a competition for customers.
  2. Investment Synergy: Professional investors usually invest in companies that seem appropriate to them. On some occasions, they invest in companies whose services could be complementary, although these investors, for different reasons, not always create partnership relationships between their investees. For example, the online agent Housfy has investors, who are also investing in Finteca or Prohipotecas. They could create complementary services, although in this case, the two companies are not partners.
  3. Commercial Relationship: Obviously, another way of relationship occurs when a proptech uses another proptech service. It is usual for companies to enrich their offer and prefer to distribute another’s service since it is cheaper than developing it internally. In addition to having to improve and maintain this other technology or service regularly. For example, the Ghestia real estate CRM offers its users the services of El Buen Inquilino (tenant scoring). Although in this case, the Ghestia user does not pay for the services received.
  4. Third-party connection: Another way to establish a relationship between two or more proptech startups, is when a third party relates them, puts them in contact, creating in this way beneficial synergies for all parties, but especially for the final clients. In this type of connection, the connector may or may not charge to make that connection among proptech companies. Well-known are the tasks that consultants perform or the quiet and free work I do when I introduce different CEOs, to create synergies.

What remains to be done is the merge of companies to increase the size and gain in efficiency, to start creating in the Spanish proptech ecosystem, the long-dreamed unicorns!!!

Let’s hope that the CEOs understand that in the merge of some of them will be the growth secret.

Gustavo Lopez

Operations Director at the Real Estate Agents Association of Catalonia