🔮 Let's start the year strong. My 2024 predictions for proptech:

1. Runway—already important—will matter even more 💵

Runway is the single most important thing for early stage companies. The primacy of cash on your balance sheet is absolutely critical for every company in the startup ecosystem.

With valuations down, equity for a loss-making business is more expensive than ever.

Cannot overstate the importance of money in the bank for entrepreneurs and leadership teams in 2024.

2. M&A: The haves will consolidate with the have-nots 💼

Related to my first point, because cash is king right now, companies that have cash are going to be able to acquire their competitors and their peers.

The winners will use their cash to bolt on solutions and strengthen their businesses.

I think we'll see a lot of this.

3. "Proptech" subsumes climate tech as term for all real estate technology 🏢

Fifth Wall works every day with large, institutional real estate owners that want to adopt technology. I can tell you firsthand that this line between software and hardware that investors and entrepreneurs identify isn't as apparent to them.

"Proptech" will become an overarching and inclusive term not just for software for the real estate industry, but also for the technology to make buildings more efficient.

When thinking about technology's collision with the real estate industry, it's impossible to ignore the hardware and software that's decarbonizing it.
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The information included herein is provided for illustrative purposes only to reflect Fifth Wall's beliefs regarding its competitive advantages. Although Fifth Wall considers such beliefs reasonable they are based on criteria that are inherently subjective and rely on assumptions that may ultimately prove incorrect. Nothing herein should be construed to imply that any of the companies herein will be profitable or successful in executing on their business strategy or that any current or future Fifth Wall managed investment vehicle will be profitable or successful in executing on its investment strategy. Statements and opinions herein are not necessarily those of Fifth Wall and Fifth Wall makes no representation or assurance that forward looking statements, forecasts or projections will be achieved. Recipients of this information should not treat it as business, investment, tax, accounting, legal or any other advice, and it should not be relied on as such. Limited partners and/or portfolio companies featured herein have not been compensated for providing their statements. The portfolio companies included herein represent merely a subset of all current portfolio investments managed by Fifth Wall and do not purport to be a complete list thereof. A complete list of investments is available upon request. Third party names and logos used herein should not be construed: (i) as a recommendation of any investment or security, (ii) as an endorsement of any product or service or (iii) to imply any affiliation between Fifth Wall and such third party. Nothing herein constitutes an offer to sell or solicitation of an offer to buy investment interests in any Fifth Wall managed vehicle.

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