Last week, ResVR, a property technology (proptech) startup that enables homebuilders and developers to sell more upgrades through a visualization platform, announced a series of financings that closed a total of $1.7 million in aggregate.

The funding was led by Inverted Ventures. Weave VC, with participation from Bluesky Equity, InRoad Ventures, ThresholdImpact, Startup TNT and a Canadian-based group of angels provided the non-dilutive capital ($270,000).

Saving homebuyers from relying on blacklines or blueprints to imagine their new home

Founded in 2023, ResVR specializes in 3D visualization proptech, working with production homebuilders to showcase their designs and plans to help homebuyers feel confident in their purchase and the options and upgrades they choose.

“In 2024, it is crazy that people are making the biggest purchase of their lives and have to imagine what it will look like off blacklines or blueprints. This is the problem ResVR solves,” ResVR founder and CEO, Nathan Nasseri, explains.

The company cites data from homebuyer surveys indicating the need for homebuilding sales visualization software is significant: 87 per cent of new homebuyers would make changes to their homes with better visualizations, but 73 per cent weren’t provided sufficient information to move forward confidently and only 65 per cent felt the floor plan selected matched what they received.

“ResVR empowers builders and buyers, which leads to happier customers who are more satisfied with their decisions because they were able to visualize them and make more thoughtful choices,” says Nasseri.

‘(We) invested in ResVR because it represents an innovative change that will create a paradigm shift in the legacy homebuilding industry’

Craig D’Cruze, COO of Inverted Ventures, comments on his firm’s participation in the equity funding round: “Inverted Ventures invested in ResVR because it represents an innovative change that will create a paradigm shift in the legacy homebuilding industry. ResVR offers a service that digitizes and optimizes the sales upgrade process for homebuilders in ways previously unattainable. With his deep-rooted experience in homebuilding and his instrumental role in developing this technology since 2015, Nathan brings unique insights, capabilities, and a founder-market fit that will be crucial to this company’s success.”

“I am thrilled to be supporting Nathan in his newest endeavor,” adds angel investor Aaron Flynn, CEO of Edmonton’s Inflexion Games. “Nathan is bringing enormous drive and strong experience to ResVR as he and the team help homebuilders make buyer’s dreams come true with more confidence and understanding than ever possible.”

What’s next 

Later this year, ResVR will unveil follow-up products for designing home exteriors and showcasing new communities for land developers. “This is the beginning of something massive,” Nasseri says. “The homebuilding industry is overdue for a shift towards digital transformation, and ResVR is here to make that happen.”

Image source: resvr.com

In December 2023, over 100 MLS, association, proptech and brokerage leaders from 32 countries embarked upon Paris, France, for the inaugural International MLS Forum.

Spearheaded by the Real Estate Standards Organization (RESO) and the European Association of Real Estate Professions (CEPI), the forum was organized to discuss the future of global real estate but primarily focused on the starting block for this transition: a common data standard creating a unified “language” of real estate regardless of borders.

That standard, of course, is the RESO Data Dictionary, which is the standard in North America and has expanded into over 20 countries. 

Current global data landscape

In most countries besides the US and Canada, real estate markets are loosely regulated and have virtually no centralized data repositories or standards. Generally speaking, most brokers focus on hyper-local markets that cover neighborhoods rather than cities. That local focus, coupled with the fact that buyer and seller broker cooperation is the exception, not the norm, limits the need for robust data repositories.

However, as it tends to do and has been proven by other industries, the internet has rewritten the dynamics of the real estate profession by empowering the consumer with more information and the desire to have as much information as possible to make the best decision. 

With consumers demanding more market data and information and the opportunity to leverage new technologies to scale a broker’s business, the global real estate industry is waking up to the idea of data-powered tools and resources as a critical component of their business. 

Building with a unified global mindset

With real estate consumers demanding more insights into the biggest purchase of their lives, and the emergence of proptech companies bringing valuable process and efficiency improvements for both consumers and agents, MLSs and associations across the globe are taking essential steps to ensure that their respective markets are organized in a way that benefits all stakeholders. 

As those conversations ramp up, the natural tendency is to build these MLSs with standards that best fit their hyper-local market, without thinking about how they fit into the “bigger picture” of integrating into regional, provincial/state, national and international data systems. Building highly bespoke and disparate MLSs will bring about highly disparate and isolated markets, leaving stakeholders to navigate many different platforms, interfaces and systems to shop and find real estate. 

Building an MLS using a comprehensive and globally accepted data standard creates an agile framework that allows even the smallest real estate markets to plug into the global property search landscape and take advantage of leading innovations in the industry.  

The importance of a single data standard

First and foremost, a single data standard fosters transparency. Imagine a world where a property’s specifications, transaction history and market trends seamlessly flow across borders, accessible to consumers and professionals alike. Such transparency breeds trust, empowering buyers and sellers with the insights they need to navigate complex markets confidently.

A unified standard propels broker-to-broker collaboration. By speaking the same “language of real estate data,” brokers can effortlessly share information, streamline transactions and expand their networks across geographic boundaries. This collaboration transcends competition, enriching the industry’s collective knowledge and enhancing the client experience.

Perhaps most importantly, a single data standard catalyzes industry innovation. With a solid foundation of accessible and standardized data, proptech companies can efficiently develop cutting-edge solutions that revolutionize real estate, further empowering consumers and real estate professionals. In other words, with all real estate data built under the same standard, proptech companies can build a single product with identical inputs in every market abiding by the standard. 

Adopting a single data standard is the surprisingly simple answer to the complex challenges facing the global real estate industry. It’s a necessary first step in guiding us toward a future where real estate borders blur, collaboration flourishes and innovation knows no bounds. As MLSs, associations and stakeholders embrace this paradigm shift, they pave the way for a more transparent, interconnected and dynamic real estate ecosystem that empowers consumer transparency while opening up new business opportunities for brokers around the world. 

If you’re interested in learning more about the work to create a single standard, visit the International MLS Forum’s website and stay tuned for the 2024 International MLS Forum announcement.

Proptech Collective recently released its third annual Proptech in Canada report, which highlights the many startups and trends shaping the future of the real estate and construction industries.

Proptech is flourishing in Canada

Canada is not just establishing itself as a prominent North American tech hub, but it’s also emerging as a haven for real estate innovation, supported by attractive immigration policies, access to a robust talent pool and enhanced support for innovation programs.

In the last year alone, over 50 new startups have become part of the Proptech Collective database, bringing the total to 500 active proptech companies. Looking into startups across commercial real estate, residential real estate and construction tech sectors reveals the following highlights:

Hub concentration. Approximately 77 per cent of Canadian proptechs are located in five major hubs — Toronto, Vancouver, Montreal, Calgary and Kitchener-Waterloo — with nearly 46 per cent located within the Greater Toronto Area.

Startup evolution. A significant 75 per cent of Canadian proptech startups have been launched within the last decade; 40 per cent emerged in the past five years.

Financial milestones. Even in a challenging market environment, Canadian startups have collectively raised over $1.5 billion in funding since June 2022.

Industry segments. Residential real estate proptechs make up more than 40 per cent of all proptech startups across the country.

Significant newcomers to the space included Adaptis (circularity and decarbonization planning software), Chexy (rental rewards platform), Doormat (a modern lawyer for real estate transactions that real estate agents and clients benefit from on cost, efficiency and transparency), Wiseday (instant, digital mortgages) and Landslo (lead generation for mortgage and agents).

Navigating future trends

Four trends were clear from the conversations with entrepreneurs, real estate leaders and investors:

• Decarbonization. With a focus on sustainability, experts are prioritizing the integration of ESG (Environmental, Social and Governance) principles and data into the entire real estate value chain — from design through operation to demolition. Examples of areas include sustainable materials, grid stability and robotics aiming to reduce waste for offsite construction.
• Affordability. The widespread issue of affordable housing across Canada is spurring innovation. Examples include alternative financing and co-ownership models to enhance housing security, as well as opportunities where prefab and modular options allow for building faster and more sustainably.
• AI integration. Many of us are no strangers to artificial intelligence, and neither are real estate leaders. From leveraging AI for scenario analysis or even using tools like ChatGPT to automate conversations and listing promotions, there’s a growing consensus on the need for increased adoption of this technology in the industry.
• Integration and consolidation. Proptech’s evolution over the past decade has paved the way for consolidation and partnerships between different startups. Strategic collaborations are starting to allow for more holistic consumer experiences, for example in residential real estate, by integrating search, mortgage and closing processes into one platform.

Paving the path forward

While the last year has proved to be more challenging across the industry given rising interest rates, the need for digital solutions has not diminished.

The future promises not just growth but a transformation. Canada will remain a hub for real estate innovation, shaping a resilient and positive path for the real estate and construction industries. Visit proptechcollective.com to learn more about the Proptech in Canada 2023 report and Proptech Collective’s year-round work.

Courtney Cooper has become one of Canada’s only female proptech partners. She was recently promoted to the role at Alate Partners, an early-stage venture capital fund specializing in real estate technology.

Well-known proptech leader, fostering development

Cooper has become a well-known leader in the proptech space for recognizing and fostering the development of innovative companies changing the real estate landscape. She won the Canadian Venture Capital and Private Equity Association’s Rising Woman Star Award and was recognized on the Top 10 Real Estate Reformers, part of Maclean’s Magazine’s Power List.

As well, Cooper is co-founder of Proptech Collective, the largest Canadian community that furthers collaboration between real estate professionals, entrepreneurs and proptech stakeholders.

A step towards gender balance in proptech

First launched in 2018 as a partnership between Relay Ventures and Dream, Alate welcomed Cooper shortly after as the Director of Corporate Development. She then became principal before being named partner.

“I am proud of what we have built to date, and I am honoured to take on this role as we collectively work to propel the real estate industry forward,” says Cooper. “This is a great time to be in this space because when times are tough, people tend to innovate. It’s exciting to have a front seat to witness cutting-edge technology and real estate converge to unlock a world of opportunities that will no doubt shape the future of this dynamic industry.”

Among other things, Cooper’s promotion is a step towards gender balance within the venture capital community – where female-led funds are underrepresented.

In her new role, Cooper will lead investments of Alate’s fund which has backed 17 proptech companies and is set to facilitate 10 more investments in early-stage real estate and construction technology companies.

“Courtney’s outstanding leadership and her track record of success in real estate technology investing is unparalleled,” says John Albright, co-founder and managing partner, Relay Ventures. “Her work in identifying and nurturing high-potential proptech startups has earned her the reputation as Canada’s go-to person in proptech and positioned Alate as the leading venture capital fund in this space.”

In today’s Canadian real estate market, we have witnessed a slowdown clouded in uncertainty, but with one constant throughout – the availability of time. So, it has never been more important for real estate stakeholders to rethink their strategic platforms and reflect on how they will implement efficiency and precision to stay competitive.

Clients and prospects that I work with are saying this market pause is an opportunity to “peel back the onion” on identifying how they can improve their processes, giving them time to seriously plan how to use their capital and resources wisely for when new opportunities arise and the market rebounds.

Recognizing the transformative power of PropTech and data-centric solutions is at the forefront of this, and will be crucial when navigating the industry’s current challenges. 

Rise of proptech in Canada: A journey of acceleration

Having spent my career working at the intersection of real estate and technology in Canada, I’ve seen firsthand how the PropTech landscape has evolved at an accelerated pace, especially in commercial real estate.

PropTech, short for property technology, refers to the use of technology and digital-first solutions in real estate that modernize the old processes that were used daily by industry professionals. Technology in real estate has advanced rapidly, opening up significant funding opportunities and a rich talent pool. Toronto, for example, was recently described by Bloomberg CityLab as being at the forefront of artificial intelligence development, attracting top AI experts.

Over the years, I’ve noticed that these PropTech companies are not just innovating but are merging together to expand their solutions and accelerate their growth. They have become more focused on leveraging their unique areas of expertise to provide better services and choosing to buy, or partner to offer, one central solution. 

Perhaps the most important trend I’m seeing, however, is real estate organizations’ newfound ways of leveraging data which, in my view, is the most powerful tool these companies can have.

The impact of data-centric solutions

Real estate as an official asset class means there are high expectations when it comes to effectively reporting investments to both stakeholders and the general market. This has opened up major opportunities for data-centric solutions and made evidence-based decision-making critical. 

Data is a commodity, but when it is structured, centralized and transformed into information, it leads to faster, more informed decision-making. Today, the speed and accuracy with which decisions need to be made, opportunities identified and risks managed are all dependent on the availability and quality of data to drive the benchmarking, predictive analytics and AI solutions the industry demands. 

Case in point

I recently spoke with a senior leader from one of the largest global real estate investment management firms in North America about how his firm was looking to solve workflow and global reporting challenges. He and his firm quickly realized they needed to prioritize organizing their own data first, but doing so required a great amount of time to successfully map out various pieces of data to a single place.

Through the implementation of a business intelligence tool, they were able to organize both their own data as well as the data coming in from outside sources, enabling more holistic and consistent reporting on a global scale. More importantly, the company was then able to explore solutions to help automate team workflows and support predictive analytics that both centralized and normalized their data. 

Challenges & best practices: Navigating the human element

Implementing data-centric solutions comes with its fair share of challenges, the most notable being human resistance to change. So, companies need to involve employees in the decision-making process, which will allow them to contribute their perspectives and first-hand experiences to ensure this technology fits with their needs and goals. 

Case in point

A senior management member of an independent global asset management firm here in Canada shared insights with me on unsuccessful technology implementations due to not involving day-to-day teams in the initial sourcing of the solution. Establishing a centralized data strategy was important, but so was selecting a solution that would meet daily challenges and impact reporting up to senior management.

Based on these observations, this executive gathered requirements directly from his team and involved them in the review process. The goal was not to establish a data-centric approach for the sake of centralizing data but to have data that really mattered for solving the problems they had identified together.

This led to selecting a PropTech solution that significantly improved the efficiency of the team and, more importantly, enabled this executive to answer questions from senior leadership within minutes by managing, tracking and reporting on the data required to immediately produce insights to make faster and more informed investment decisions.

PropTech: The foundation of real estate’s future

As the Canadian real estate market navigates what has been a global pause, the role of PropTech and data-centric solutions has been relevant to all real estate organizations. While many have a pessimistic view regarding the current slowdown, I see immense opportunity for PropTech to thrive, as companies realize that embracing technology is no longer an option but a necessity.

By capitalizing on data-driven solutions, real estate organizations can unlock their true potential and create a future of sustained growth and success.

Following its launch in Toronto in 2018 and subsequent expansion into British Columbia, HouseSigma now provides Calgarians and residents of other rural Alberta markets with access to market insights.

The platform provides users with real-time market information, including sold property data, complete sold price history, and the ability to request updates on new listings and sold properties for specific communities, customized areas or property types.

The inspiration behind HouseSigma came from the personal experience of its CEO and co-founder, Joseph Zeng, who encountered limited access to real estate data while purchasing his first home.

“Looking back to when I was buying my first home, I remember grappling with a lack of accessible, comprehensive real estate data. This personal frustration wasn’t just a challenge but an inspiration that became HouseSigma. I created the tool I wish I had when I was looking for my first home,” says Zeng.

Since its launch, HouseSigma has gained popularity among Canadian millennials, becoming a trusted resource for real estate information.

Michael Carney, the director of business development at HouseSigma, expressed enthusiasm about serving the Alberta marketplace, particularly in Calgary.

“Migration into Alberta, low inventory, and affordability concerns have created a difficult market for buyers,” Carey acknowledges. “Our commitment to transparency is at the core of our vision as we aim to become the homepage of real estate in Canada.”

HouseSigma’s platform also includes historical pictures of MLS listings, providing users with insights into a property’s past transactions and renovations.