PropTech breakthroughs are redefining how buyers, sellers, landlords and tenants interact with property.

And if anyone knows how this will impact the industry, it’s entrepreneur in residence at REACH Australia and New Zealand Tom Ellis.

In this episode of the Elevate podcast, hosted by Samantha McLean, Tom takes a deep dive into his mentoring role at REACH and shares his insights on this year’s cohort, highlighting the innovators breaking through traditional PropTech barriers.

Tom also reveals the secrets behind startup survival in tough markets and how any business, including yours, can turn challenges into opportunities by zeroing in on uncontestable value.

He delves into the game-changing impact of AI and virtual reality on the real estate experience, explaining how these technologies are revolutionising agent rankings and client interactions.

Tom also discusses the key factors for making smart PropTech investments, the surge in mergers and acquisitions, and provides a sneak peek into his presentation at the upcoming PropTech Summit, where he’ll explore emerging opportunities in the Build-to-Rent sector.

“I think in these environments there’s a requirement for people to slow down and really communicate well on what problem they’re trying to solve. A focus on understanding impact and what that means, whether it’s impact to people, impact to teams, impact to bottom line, everything is looking at that understanding of how to drive a more optimised dollar spend rather than investment in billboards and marketing.” – TOM ELLIS

Tom Ellis brings a wealth of expertise in corporate finance and real estate technology, making a significant impact through his leadership at Pebble Ventures and Rich Australia. His guidance in mergers and acquisitions and fostering innovation positions him as a key figure in the evolving proptech landscape.

Agility in a Dynamic Market
Ellis highlights the adaptability of newer companies, unencumbered by legacy systems, enabling them to navigate market changes swiftly. For mid-sized firms with established cultures, he stresses the importance of cultivating resilience, reminding us that “every storm runs out of rain.”

The Thriving PropTech Ecosystem
Ellis underscores the vital role of organisations like Second Century Ventures and REACH in supporting over 250 portfolio companies globally. These initiatives drive value across the property lifecycle, from construction to facilities management, with a strong focus on sustainability and efficiency.

Empowering Founders and Overcoming Challenges
Ellis champions hands-on support for founders, especially in challenging economic conditions. He recounts assisting a struggling company by innovating revenue strategies, demonstrating the potential for transformation even in adversity.

Understanding the Real Estate Consumer
Meeting the evolving needs of residential and commercial consumers remains central. Residential buyers seek trust and meaningful relationships, while commercial developers prioritise creating community-focused spaces that enhance interaction with the built environment.

Technology’s Expanding Role
Ellis highlights AI and immersive technologies as pivotal in reshaping real estate. From predicting market trends to simulating construction projects, these advancements are enhancing both consumer experiences and operational efficiency.

Advice for Aspiring PropTech Investors
Ellis advises potential investors to adopt a learning mindset, remain prepared for risks, and focus on partnerships that enhance agency operations. He emphasises leveraging the technologies created by investee companies to drive mutual success.

Mergers and Acquisitions: A Growth Strategy
Recent growth in mergers and acquisitions reflects a strategic shift as companies pursue innovation through collaboration. Ellis foresees this trend continuing, supported by Australia’s talent-rich technology sector.

Summary
Ellis remains optimistic about the proptech sector’s future, recognising the balance of challenges and opportunities. He urges agents and agencies to engage with emerging technologies and industry conversations to stay ahead in a rapidly evolving market. At events like the PropTech Summit, he encourages openness and ambition, inviting attendees to share and absorb insights that could shape their businesses profoundly.

1. Who is Tom Ellis?
Tom Ellis is a leader in corporate finance and real estate technology, with extensive experience guiding companies in the proptech sector. He is associated with Pebble Ventures and Rich Australia, where he advises on mergers, acquisitions, and innovation strategies.

2. What is the key advantage of newer proptech companies?
Ellis highlights that newer companies have greater agility, allowing them to adapt quickly to market changes due to the absence of legacy systems and entrenched processes.

3. How can mid-sized firms foster resilience in changing markets?
Ellis advises mid-sized firms to build a culture of confidence and adaptability, ensuring their teams are prepared to navigate challenges and embrace change.

4. What role do organisations like Second Century Ventures and REACH play in proptech?
These organisations support a global portfolio of over 250 companies by fostering innovation and unlocking value across the property value chain, including construction, facilities management, and sustainability.

5. What is Ellis’s advice for founders navigating challenges?
Ellis emphasises the importance of hands-on support, focusing on innovative strategies to overcome obstacles. He shared an example of helping a financially distressed company revitalise its revenue model to achieve sustainable growth.

6. What are the evolving priorities for real estate consumers?

7. How is technology shaping the real estate industry?
Ellis highlights that AI and immersive technologies are reshaping the sector by:

8. What advice does Ellis offer to aspiring proptech investors?
Ellis recommends adopting a learning mindset, being prepared for risks, and focusing on strategic partnerships. He stresses the importance of actively using the tools and technologies developed by the companies they invest in.

9. Why are mergers and acquisitions becoming more common in proptech?
Ellis attributes the rise in mergers and acquisitions to slowing organic growth, prompting companies to seek innovation and expansion through collaboration. He expects this trend to continue, driven by Australia’s talent-rich tech sector.

10. What are Tom Ellis’s recommendations for industry professionals attending events like the PropTech Summit?
Ellis encourages attendees to approach such events with openness and ambition, ready to share and absorb insights that could significantly impact their businesses and the broader industry.

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