Credit Suisse sees good opportunities for proptechs
Most companies that provide technology-based solutions for the real estate industry have survived the Corona crisis well. This is shown in a report by Credit Suisse. According to the big bank, the industry is aiming to double sales in 2021.
The corona pandemic has also posed challenges for the proptech industry, as a new report from Credit Suisse shows. Globally, for example, 25 percent less risk capital has flowed into such start-ups. However, the reluctance to invest has not left any major mark on the industry. Almost 80 percent of Proptechs were able to increase their number of employees in the past twelve months. Only 3 percent reported a decrease in the workforce. In addition, 87 percent expect a further increase in staff in the next twelve months.
Furthermore, only around 10 percent of proptechs suffered a setback in sales. In contrast, 80 percent were able to increase their sales during the Corona crisis. According to the report, the industry is aiming to double sales in 2021. In 2022 and 2023, too, higher sales growth is expected than in 2020.
Credit Suisse also looks at the Swiss proptech industry in the study. Accordingly, the number of proptechs active in Switzerland also increased last year. With over 320 companies, Switzerland has an extremely high density of proptechs in an international comparison, it is said.
However, the bank also points out that many proptechs with similar business models appear in the market. She assumes that not all companies will be able to position themselves successfully. Credit Suisse sees the quality of the management team and the scalability of the business model as the most important success factors of a Poptech.