Research by VC Innogy Innovation Hub: 244% surge in PropTech startups in Israel

by Ifi Reporter Category:Start Up Jun 21, 2019

VC Innogy Innovation Hub along with ConTech, an innovative program by the Israel Builders Association, in partnership with the Ministry of Housing and Construction and the Ministry of Economy, have all recently conducted a joint research to examine processes in the PropTech field over the last decade , including development in construction tech, asset insurance, property management, real estate exchange, and digitalization of construction processes, to name a few.
The research found more than 100 different startup companies operating in this scope, with the last five years marking a dramatic 244% growth, yielding 66 new startups vs. just 27, only five years ago. Over the previous three years, this factor reflects a 58%.
The research also indicates that over the course of the last two years, many construction tech startups have penetrated the market following what seems to be a result of its recent exposure and expansion, and due to the growing need for safety measures solutions in light of recent notoriously high-profile workplace accidents in construction sites. Some of these technologies even seem to be ahead of their time when it comes to safety workplace regulation.
Investments in PropTech continue to grow globally: where as in 2016 investments totaled at $ 2.8 Billion, 2017 has seen an increase totaled at $ 3.4 Billion, and in 2018, investments went up to $ 4 Billion. In Israel, $ 200 Million were invested in the field in 2018 (with 95% of those in PropTech and the rest being in construction tech). Overall, for the last decade, PropTech investments in Israel adjusted to $ 1 Billion.
Mickey Steiner, director of Innogy Innovation Hub in Israel: "To us, as an international investor, one of the most interesting fields today is PropTech, which is why we had set out to do this research. into the research because we think this is a serious issue, not only because we believe the Israeli market has now mature enough due to rising competition in the field, but also because advanced technologies such as AI, lasers, AR, and others, have become Much more available and inexpensive. Today, these technologies allow incredible developments that improve efficiency in other traditional construction processes, and help solve safety problems that are a major concern for construction tech. improve efficiency, along with complementary regulation to turn this field into a high-potential, vibrating industry. "
Zachi Flatto, CIO of Contech, Construction Innovation Zone: "The results of this research indicate just how much the Contech program's activity has been a success, bringing a boost of new technology entrepreneurs and investors to the market. Before running this program, the massive potential embedded in this industry has largely been kept under the radar of most of the quakeholders involved. That's why we take great efforts and invest many resources to increase awareness of this field and draw as many relevant stakeholders as we can. every expert in the field, is in for a dramatic leap that would essentially change the entire construction industry over the next ten years. Our mission is to turn Israel into a world leader in innovation, making it the 'Silicon Valley' of construction tech. "
innogy Innovation Hub partners globally with start-ups to invest in and accelerate businesses ready for scale. Our outposts are firmly positioned in the world's most exciting innovation ecosystems: Silicon Valley, London, Berlin, and Tel Aviv. We have a portfolio of 70 start-ups, and an equity value of € 160 million (2019).
The Israeli outposting of innogy Innovation Hub, established in 2015, scouts for the most promising start-ups, and supports their growth through strategic investment, partnership and joint business development activities. We focus on 'Machine Economy', 'Smart & Connected', 'Disruptive Digital' and 'Cyber ​​Ventures'.
[Taken from LinkedIN] Contech is a leading global Construction-tech hub. With Israeli technologies, government support, and the spirit of Israeli entrepreneurship, Contech builds a unique ecosystem, making Israel a leading global Construction-Tech hub. The Contech ecosystem includes startups, companies from all sectors of the construction industry, contractors, software companies, regulatory bodies, policymakers and investors. Contech activities are aimed to grow the construction-tech startup ecosystem while facilitating business connections between startups and industry players in Israel and abroad

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