Billion Dollar Proptech Companies
I predict that there will be at least 25 'AI for real estate' companies that become billion-dollar companies in the next 8 years.
And I don’t mean a $1B valuation. I mean if the company exited that day, the exit would be north of $1B.
Let’s break this down. How many different parties can make money in a real estate transaction?
I’ll give you a hint, it can exceed 40 different parties.
This includes but is certainly not limited to:
- House seller
- House buyer
- Title company
- Escrow company
- Staging company
- Sell-side agent
- Buy-side agent
- Mortgage lender
- Staging company
- Appraiser
We could keep going until we reach the photographers, the movers and the painters.
Now, how many of these different parties can we create a billion-dollar 'AI for real estate' company for?
Let's imagine the world's first full-stack AI Title company.
It's a company that uses AI agents to investigate the liens on a property.
The problem it solves is the same as an ordinary Title company, of which there are thousands in the United States.
It uses AI instead of human labour - so it's jaw-droppingly cheap to operate.
This means insanely high gross margins, even as the price is much lower for Title customers.
They could grow incredibly fast, perhaps 45-55% MoM revenue growth.
As another example for this subcategory, Title, you could have a SaaS company that sells 'AI Title search' to Title companies.
More than likely, they'll both be billion-dollar companies.
Apply this to the rest of my aforementioned list, and you have a long list of billion-dollar 'AI for real estate' companies.
In the near future there will be AI for many different real estate subcategories, including commercial, residential and consumer.
Bluestairs is already a part of this future - we sell AI employees to real estate investors.
I'm looking forward to living in a cheaper, more efficient built world!
