As I make my way back to Las Vegas for BluePrint, almost a two-year hiatus from roaming the PropTech scene, having been trying to focus on my family for the time, I reflect on the journey. Looking back after living this opportunity, I have learned a lot about who I am, what I am committed to, and some level of humility.

Returning now, the landscape is both familiar and vastly different. There is a renewed vision, with some old players still in the game and many new ones emerging, making this era one of the most interesting I’ve seen in a long time. The feeling of uncertainty coupled with opportunity has proven to be a recipe in this industry, dating back to 2005 when Zillow, Redfin, Trulia, and Movoto were born. Back then, these companies were responding to market shifts in ways that redefined the sector. We may be at a similar inflection point today, but the stakes feel even higher.

Private equity firms have amassed a staggering $2.6 trillion in what the industry calls “dry powder,” an investment reserve waiting for deployment. This number is hard to ignore and even harder to fathom, tripling between 2013 and 2023. The question that begs to be answered is when these funds will hit the market and what sectors will benefit.

Simultaneously, startups across various funding stages are running leaner than ever before. The numbers tell a sobering story. Seed-stage companies, often the embodiment of early-stage risk, have seen their average headcount drop to 5.3 employees in the first half of 2024, down from a high of 6.9 in 2021. Series C startups, typically on the cusp of significant growth, have also cut back drastically — from an average headcount of 128 in 2023 to just 83 in 2024.

This cautious approach among startups could signal a shift in priorities. No longer is it just about hypergrowth and burning through cash at breakneck speed; now, it’s about efficiency, unit economics, and ensuring sustainability in the face of more selective capital markets. It reflects the challenges I faced during my break—the need to strip things back, recalibrate, and focus on what truly matters.

In many ways, private equity and startups face a similar reckoning. Flush with cash, investors are still waiting on the sidelines, perhaps watching for the right moment to deploy that capital. At the same time, leaner and more focused startups are refining their pitches and proving that they can survive — and even thrive — in a more disciplined market environment.

Looking forward, one can’t help but wonder: when will this $2.6 trillion be unleashed, and what impact will it have on an ecosystem operating more conservatively for the past few years? Will private equity firms bet on emerging technologies like AI and PropTech? Or will they play it safe, doubling down on proven models and established companies? And for the startups that have endured the tough times, will lean operations and discipline pay off when the floodgates finally open?

The next few months will likely reveal the answers to these questions. But one thing is clear: investors and startups are gearing up for a significant shift. With both old and new players contributing to this momentum, this return to Las Vegas feels like the beginning of a new chapter in the story of PropTech, and it just might be the most transformative yet.

xxoo,

Maximillian Diez

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