PropTech Playbook

What is a Capital Intensity Ratio?

The Capital Intensity Ratio (CIR) measures how much capital investment is needed to generate revenue, with lower ratios (e.g., 0.2 for a PropTech SaaS) indicating an asset-light, scalable model, while higher ratios (e.g., 1.0+ for traditional real estate firms) reflect greater capital requirements and lower scalability.

February 20, 2025

What is a Cash Coverage Ratio?

The Cash Coverage Ratio measures a company's ability to pay its interest expenses using available cash flow, calculated as (EBIT + Depreciation & Amortization) / Interest Expense, with higher values indicating stronger financial stability.

February 20, 2025

Equity Sale vs Asset Sale: What's the Difference?

An equity sale transfers full ownership of a startup, including its liabilities, while an asset sale allows buyers to acquire select assets, minimizing risk but requiring more legal and tax structuring.

February 13, 2025

The Most Common Mistakes Made by PropTech Startups

The most successful PropTech startups go beyond data and dashboards, focusing on transparency, compliance, customer workflows, and pricing to drive adoption and long-term success.

February 11, 2025

What is a 409A Valuation?

A 409A valuation is an independent appraisal of a private company's common stock fair market value to ensure IRS compliance, set stock option prices, and provide safe harbor protection under Section 409A of the Internal Revenue Code.

February 11, 2025

Biggest PropTech Exits of 2024

In 2024, major PropTech exits included ServiceTitan’s $9B IPO, PropertyGuru’s $1.1B acquisition by EQT, and CBRE’s acquisition of Industrious, highlighting continued consolidation and growth in the industry.

February 9, 2025

Which Types of Hotels Can Be Converted to Multifamily?

Hotels best suited for multifamily conversion include extended-stay hotels, underperforming older hotels, limited-service hotels, motels, and full-service hotels with large rooms, provided they have favorable zoning, adaptable infrastructure, and efficient layouts for residential use.

February 9, 2025

How to Launch a PropTech Startup

Identify a real-estate challenge, validate your solution with a user-focused MVP and robust business model, build a multidisciplinary team, secure strategic partnerships, and iterate with regulatory compliance and data-driven improvements to successfully launch and grow your PropTech startup.

January 17, 2025

How to Raise Capital for an Early Stage PropTech Startup

Raising capital efficiently for an early-stage PropTech startup requires strategic preparation, targeted outreach, and smart use of funding instruments. Here's a detailed, actionable guide to help you secure early-stage funding without wasting time or over-diluting your equity.

January 11, 2025

How Do Convertible Notes Work?

A convertible note is a short-term loan that converts into equity at a future funding round, allowing startups to raise capital quickly while deferring valuation, with terms like valuation caps and discount rates determining the investor’s future equity stake.