Data equals big business on Wall Street and for proptech companies

Hedge funds are willing to shell out major bucks for alternative data, while proptech firms search for evangelists to mine it

New York Weekend Edition /
Jul.July 29, 2018 02:41 PM

(Credit: Wikimedia Commons)

As proptech firms search for data evangelists, the likes of which have drastically changed real estate, Wall Street is ready to pay big bucks for transformative information.

Alternative data–often obscure, custom-sourced data sets–are selling for tens of thousands of dollars among hedge funds looking for an edge, according to CNBC. As of 2016, buying research accounted for transactions valuing about $200 million and business volume was expected to double by 2021.

“We live in a world where if you connect to the right database, you could know anything you want about the economy,” Tammer Kamel, who heads up data company Quandl, told CNBC.

As The Real Deal recently reported, the rise of interest in buying data has resulted in potential new revenue streams for  real estate companies that either add data analysis to their offerings or straight-up proptech firms. The latter saw $18.6 billion in VC funding pour in between 2015 and 2017. [CNBC]


Related Articles

arrow_forward_ios
Eric Gordon
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
What will proptech look like in 2019 and beyond?
What will proptech look like in 2019 and beyond?
What will proptech look like in 2019 and beyond?
From left: Ben Conry and Blair Chenault, co-founders, Flashtract (Flashtract, iStock)
Construction payments startup Flashtract closes $15M Series A
Construction payments startup Flashtract closes $15M Series A
Noam Ben-Zvi, chief executive officer, Placer.AI (Placer.AI, iStock)
Location data firm Placer.ai hits unicorn status with $100M Series C
Location data firm Placer.ai hits unicorn status with $100M Series C
From left: Sharad Rastogi, president, JLL Technologies and Zachary Denning, chief executive officer (JLL Technologies, Hank, iStock)
JLL buys cloud-based building management platform Hank
JLL buys cloud-based building management platform Hank
Dave Bateman, co-founder and ex-CEO of Entrata (Twitter/HOMEiZGROUP, iStock)
Proptech firm Entrata’s chairman resigns after anti-vax conspiracy email
Proptech firm Entrata’s chairman resigns after anti-vax conspiracy email
Out of many, one: Inside proptech’s record year of M&A
Out of many, one: Inside proptech’s record year of M&A
Out of many, one: Inside proptech’s record year of M&A
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...