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

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

Eric Gordon

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

What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?

From left: Amy Brandt and Dennis Gilmore

First American to buy Docutech for $350M

NestApple head broker Nicole Fishman, president Stephen Kalifowitz, RentHop founder Lee Lin and RoomZoom founder Elien Becque

Broker-fee ban could boost some startups, doom others

House Canary CEO & co-founder Jeremy Sicklick (Credit: iStock)

Home-valuation startup closes $65M funding round

City Council Speaker Corey Johnson (Credit: Getty Images, iStock)

City Council wants more oversight of “ghost kitchens”

Kitopi CEO Mohamad Ballout (Credit: Kitopi and iStock)

“Smart” kitchen and delivery startup raises $60M for US expansion