Failure opens opportunity for Real Estate Tech Startups
The failure culture of startups is killing innovation. While the perceived risk of failure has been reduced with the accessibility of research and insight, the reality is that 8 out of 10 startups will fail. However, when one company fails the door of opportunity opens for competitors, regardless of their innovation or competitiveness.
In the competitive world of retail real estate, Storefront, a San Francisco based real estate tech startup, helped retailers 'beta test' a new retail concept before signing a long term lease. However after receiving $8.9 million in venture capital funding in 2 rounds of funding from 17 investors, on March 18, 2016, Storefront shut down its pop-up retail platform.
Founded in 2012, Storefront was amongst the second wave of real estate tech startups that ushered in a new era of real estate innovation. However, with their sudden failure, Storefront has opened the door of opportunity for startups like MiLES and UK based startups We Are Pop Up and Appear Here to improve upon market share.
While there still isn't a clear leader in the commercial real estate tech (cretech) - retail sector, the reality is that the herd is thinning. And as real estate professionals begin to decide winners and losers, the luster of real estate tech is beginning to wear off as brokers, agents, and real estate investors focus their attention on profitability and "real" innovation rather than hype.