PROPSTER raises a 3 million euro investment as part of the Seed+ financing round
You would think that writing these lines would have been easy, but that is not the case. Emotions run high and thoughts disappear just as quickly as they came. In order to better understand the situation we are going through, you should know the background. The funding round started back in 2019 and PROPSTER was heading for a successful closing. Even the appearance of the corona pandemic on the global stage could not harm the signing of the contract. But then the accounts remained empty, PROPSTER was at least enriched by an experience, although a painful one. The past cannot be changed, so there is no point in holding on to it. You fall, you get up again and you look forward. Incidentally, this is the only direction worth looking in such situations.
Ever tried. Ever failed. No matter. Try again. Fail again. Fail better
With newly acquired wisdom and a strong willpower, they once again went in search of an investment. Basically, it could not have gone better. With the new investors from the UK, France, Germany and Austria, a strategically important network was established. This search for a new investment, which lasted almost two years, shows us above all that crises cannot harm a good product and wild determination. In the following lines, we will tell you where the journey is going and what we are aiming for with the newly acquired capital.
Opening up new markets with new investment
Vienna, 25. 05 2021 Viennese PropTech start-up PROPSTER confirms UK market entry this week, following €3 million (£2.6 million) raised in seed funding. Underlining the continued confidence in the PropTech sector, aws Gründerfonds (Austria) leads the growth capital funding round together with fellow European investors Axeleo Capital (France), and London based investors Pi Labs (UK), who are also joined by Realty Corporation (UK).
A digital configuration and collaboration solution for residential and commercial real estate, PROPSTER transforms the real estate buying experience from a customer perspective, bringing confidence to the process through a single, seamless platform that combines communications, document sharing, a 3D configurator, and a digital specification tool for fixtures and furnishings.
The PropTech start-up, which formed part of Pi Labs’ 2020 Accelerator Programme, is now actively supporting over 90 residential and commercial developers across its established market base of Germany, Austria, Switzerland and Slovenia. The cloud-based software allows property developers, project developers and general contractors to significantly reduce friction and delay throughout the entire project cycle, removing the need for up to 75% of face-to-face customer interactions by shifting the conversation and decision-making to a smart digital platform.
“While Covid has vastly accelerated the digitisation of the real estate industry, the focus now is on how we understand the customer experience, which has long been overlooked. Our platform puts customers first and gives them control and confidence in what has previously been a fragmented process – from off-plan sale through configuration and specification of fixtures and furnishings, and finally in snagging and handover. This seamless collaborative approach has hugely positive implications for the developer – including reducing friction and delay and optimising additional revenue,” explains Milan Zahradnik, founder and CEO of PROPSTER. “We’re immensely proud of our growth story to date, and securing this calibre of seed investors is a vote of confidence in how our platform can continue to truly transform the real estate buying process. The UK is a core market for our continued growth pipeline, and an important springboard to position PROPSTER as a global real estate platform, so we look forward to announcing our first UK pilot project within weeks.”
PROPSTER uses a combination of machine learning and e-commerce through demographic data, project specifications and customer information. As a result, the optimal configuration and customisation of fixtures and even furnishings can be determined early in the process, affording the developer more secure planning and access to potential new revenue streams.
Ralf Kunzmann, Managing Director of aws Gründerfonds: “PROPSTER is addressing a market that has been heavily under-digitised to date. The early involvement of a buyer in the design process of a product – or, as in the case of PROPSTER, a property – is now state-of-the-art and fully in line with today’s customer mindset. This is a global trend that can be found in many areas. People are moving to the centre of attention. PROPSTER has recognised this trend and created a digital solution that takes the customer’s individuality into account. With our investment, we support this general development and the rapid implementation of the growth plans and contribute to closing another digitalisation gap in the market.”
Faisal Butt, CEO of Pi Labs: “We see our investment in PROPSTER as the first of many investments we plan to make in the DACH region. PROPSTER was also the first entry into our accelerator programme of a growth stage business that has had significant commercial traction already. However, it is the combination of the Pi Labs investment, connectivity and ecosystem which has elevated them to the next level. The accelerator provides access to the highest quality of mentors for our portfolio companies, helping to build resilient and well-rounded businesses that are well positioned to grow their offerings globally.”
Eugénie Martinez, Associate at Axeleo Capital: “PROPSTER’s vision to help real estate developers digitize the sales process and transition to a customer centric approach is in line with the turn that the market has been taking since a few years. The team’s very good knowledge of the European market will be key in the company’s development.”
Robert Karde, Managing Director of Realty Corporation: “Realty Corporation is delighted to have invested in PROPSTER. The need for efficient solutions adapted to the current new demands of developers and property buyers, gives us great comfort in this next stage of expansion and growth for PROPSTER. With its talented team, ambitious growth strategy, and established local presence in the DACH region, PROPSTER is well-positioned to become a leading solution for real estate developers and contractors in Europe. We are thrilled to support this PropTech startup and help enable their strategy – including the near-term expansion in the United Kingdom.”
About aws Gründerfonds
aws Gründerfonds is Austria’s most active venture capital fund with around EUR 70 m under management. The fund invests during the later seed and series A/B phases of highly scalable Austrian technology start-ups. Co-investors from our international network are actively involved. aws Gründerfonds sees itself as a long-term, stable partner and offers entrepreneurial venture capital with active support. To date, together with co-investors, more than EUR 328 million have been invested in 38 portfolio companies in the digital, deep tech & industry and life science sectors and numerous exits have been successfully completed. www.gruenderfonds.at
About Pi Labs
Pi Labs is Europe’s first and most active proptech focused VC having built a portfolio of 55+ companies globally since its launch in 2015. The firm is committed to backing the next generation of proptech entrepreneurs by investing in pre-seed to Series A early-stage ventures that are shaping the future of our built world. This mission has seen Pi Labs invest in various leading proptech businesses including Landtech, OfficeApp, HubbleHQ and many more. Pi Labs also runs a world-leading annual 15-week accelerator designed specifically for a carefully selected group of PropTech startups solving the property industry’s biggest challenges. www.pilabs.co.uk
About Axeleo Capital
Axeleo offers european B2B startup founders a unique growth framework by combining VC funds, custom acceleration programs and an ecosystem of 100+ A-class partners and mentors. Axeleo powers startups from Seed to Serie B; and is a key partner in a startup’s life from go-to-market industrialization to internationalization. Jenji, 365Talents, Hyperlex, Trustpair as well as excubated projects from large corporations count amongst Axeleo’s portfolio. www.axeleo.com
About Realty Corporation
Realty Corporation is a privately held firm with real estate investment, advisory and PropTech activities in Europe, the Middle East and the United States. Combining intellectual curiosity, deep market knowledge, and decades-long relationships, the company identifies and executes investment transactions where there is a steadfast conviction on delivering superior returns for Realty’s own balance sheet and for its co-investors. Realty have advised on or managed in excess of £3bn of pan-European real estate transactions across all major asset classes since the inception of the company in 2017. The team has a combined historical track record exceeding £40bn of investment advisory and asset management of residential and commercial real estate. realtycorp.co.uk