Wall Street pivot benefiting real estate tech startups

Hedge funds, private equity groups and mutual funds giants are increasingly investing in late-stage startups, as a growing number of young tech companies choose to delay public offerings, Reuters reports.

The pivot by some Wall Street firms towards the startup space has benefited at least two real estate tech companies.

Tiger Global Management, a prominent member of the cohort of Silicon Valley outsiders now eyeing startups, has made large investments in the brokerage Redfin and neighborhood social media site Nextdoor.

Redfin CEO Glenn Kelman said that the two Wall Street firms that led its recent $50 million financing round, T. Rowe Price and Tiger Global Management, seemed to appreciate aspects of the company that had previously caused some venture capital firms to “fret.”

“These investors realized that if you want to change the whole game in consumers’ favor you have to play the whole game, not just with a website or an Android app, but with the agent, the home tour, the open house, the yard sign, the offer negotiation, the closing and the key exchange,” he wrote in an article that was republished on Inman News.

Source: Reuters