PieLAB, a Brisbane-based company founded in 2016, has a clear mission to provide growth capital to PropTech businesses in Australia. This initiative is groundbreaking for real estate tech companies in the country, as it opens doors to opportunities and resources that were previously inaccessible to most start-ups.
Chris Rolls, a prominent entrepreneur and respected figure in the industry, leads the team at PieLAB. They focus on actively investing in PropTech start-ups that are predominantly in the late-stage of development, with the potential to shape future practices, processes, and market conditions.
PieLAB is not just a group of savvy investors, however. They go beyond this role to provide support, guidance, and expertise to their portfolio companies.
PIELAB’S APPROACH
PieLAB has implemented a unique investment model that involves more than just passive investments. They actively integrate with the companies they invest in, becoming an extension of their business. Through this approach, they offer expertise, mentorship, and growth strategies in various areas, such as finance, marketing, recruitment, management, corporate governance, and organizational health.
PieLAB’s involvement in the distribution of the portfolio companies’ services is hands-on, as they introduce them to their vast network of real estate agents and investors. Many of these individuals are investors in the PieLAB fund, thereby mitigating the risk associated with their shareholding. Additionally, this approach strengthens the foundation of the companies they invest in, making them more competitive in the flourishing PropTech industry.
REAL ESTATE INDUSTRY VENTURE CAPITAL FUND (2016)
PieLAB, a leading Australian PropTech firm, has secured a significant victory for the sector with the successful raising of a $21 million VC fund. The cream of Australia’s residential real estate companies, including renowned brands such as McGrath, Ray White and Belle Property, representing more than 250 businesses, have contributed to the fund. The firm was founded on the premise that technology is revolutionizing the real estate industry and providing ample opportunities for substantial returns. The goal is to achieve a compounded return of 25% over the fund’s lifespan.
The fund has been fully subscribed, with a quarter of the capital raised coming from the experienced entrepreneurs on the management team and Advisory Committee, who are among the most influential and well-connected members of the Australian real estate community. PieLAB has already invested more than half of the fund in six transactions, with promising results.
PROJECTS FUNDED
According to PieLAB Investment Director, Richard Anderson, the PropTech landscape comprises numerous sectors and sub-sectors. To identify the top performers in each class, PieLAB conducts thorough due diligence into each sub-sector. This information is then utilized to make informed investment decisions. Mr. Anderson notes that PieLAB’s governance procedures have enabled their portfolio companies to develop technology that is both defensible and capable of providing a sustainable competitive advantage to the company and its customers. Through their Real Estate Industry Venture Capital Fund, PieLAB has assisted their portfolio companies in gaining a strong competitive foothold in the PropTech market. They are:
- ActivePipe
A SaaS platform powered by AI is being utilized by a software company to offer a cloud-based subscription software product named Rita. This software functions as a digital employee for residential real estate agencies, streamlining processes and executing numerous sales, administration, and property management tasks.
- Cloudstaff
This company, incorporated in Australia but based in the Philippines, specializes in offering business process outsourcing services to small and medium-sized enterprises. Their primary focus lies in catering to the Australian real estate sector, where they hold the position of the foremost provider of outsourcing services.
- Detector Inspector
A company that is committed to ensuring the safety and compliance of both residential and commercial properties. We specialize in the installation and maintenance of various safety solutions, such as smoke alarms, gas safety systems, and electrical services.
- Different
A provider of property services that incorporates technology and focuses on the global home services industry. Our goal is to provide a full-service property management system that is smarter, faster, more reliable, and more comprehensive than traditional methods.
- HappyCo
A fledgling technology firm delivering software applications for property inspection that cater specifically to mobile and tablet users. These applications are utilized by property management clients in more than 30 nations, who oversee a collective 1 million rental units.
THINGS THEY’RE LOOKING FOR
PieLAB is actively seeking to invest in companies that provide products and services to the residential real estate industry or operate within its ecosystem. Their preferred candidates are businesses that have already gained market recognition and traction, but still need additional resources and support to achieve their full potential.
Anderson, a spokesperson for PieLAB, explains that certain criteria must be met for a company to be considered “investment ready” and eligible for inclusion in PieLAB’s portfolio.
Consideration factors:
- Residential real estate agents for the primary customer base
- A proven product market suiting customer base which generates revenue
- Humble and willing to be coached entrepreneurial founders with a demonstrated ability to grow and exit a business
- Willing to partner and enthusiastic with PieLAB to leverage their expertise
AGENTS’ BENEFITS
PieLAB’s investments provide essential benefits and advantages to agents, serving as a foundational requirement that guides the industry’s innovation and transformation. According to Mr. Anderson, agents operating within PieLAB’s network can take advantage of the steady flow of new and innovative technology offerings in the market. By tapping into the PieLAB network and leveraging its diverse skill sets, agents can continually improve and evolve their service offerings. As a result, agents can secure more listings and attract a larger pool of potential buyers and investors, leading to significant positive impacts throughout the industry.
FINAL WORDS
PieLAB is injecting capital and offering first-class support to hungry PropTech start-ups, who represent the future of the Australian real estate industry. By focusing on the fertile soil of these businesses, PieLAB is not only benefiting emerging entrepreneurs but also the industry as a whole. As a result of on-going developments in the PropTech sector, fundamental shifts in industry practices are being ushered in, which will ultimately benefit consumers.
