Viola article identifying Michaeli as former Fundbox co-founder and VP Operations
Archived source: Viola article identifying Michaeli as former Fundbox co-founder and VP Operations. Captured from www.viola-group.com.
Cited in: Tomer Michaeli
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Filters Filters Categories All Categories AI Infrastructure Business ClimaTech Coronavirus Cyber DefenseTech FinTech GAI Growth Human Resources Israel Growth Summit New Operational Model Portfolio Activity SaaS Sales Semiconductor Startup Resources Technology The Israeli Angle The VC Perspective Uncategorized Venture debt Viola Data Contributors Viola Contributors Guests All Contributors Alex Shmulovich 5 items Alon Cinamon 1 items Avi Zeevi 2 items Ayal Shiran 2 items Bastien Goetschel 1 items Daniel Cohen 23 items Daniel Tsiddon 2 items Harel Beit-On 7 items Ilan Stein 2 items Jacob Nelson 1 items Jeff Shapiro 2 items Lee Shmulevitz 1 items Merav Meluban 3 items Natalie Refuah 11 items Noam Inbar 8 items Omry Ben David 21 items Or Zolty 2 items Ronen Nir 19 items Rotem Shacham 13 items Sami Totah 1 items Shaun Zamir 2 items Shlomo Dovrat 3 items Tal Abuloff 3 items Tomer Michaeli 17 items Viola Editorial 152 items Viola Fintech Editorial 2 items Yair Weizman 1 items Zvika Orron 9 items See all contributors All Contributors Bruno Rosenblatt Hacad 1 items Carmel Yoeli 2 items Dan Shamgar 1 items Danna Zakai 6 items David Schapiro 1 items Einav Laviv 1 items Eitan Chitayat 2 items Elad Manishviz 1 items Irit Kahan 1 items Jake Gordon 1 items John LoGioco 1 items Jonathan Nimrodi 1 items Jonny Steel 1 items Moran Barnea 1 items Ori Bendori 2 items Ori Lahav 1 items Pamela Becker 1 items Ran Levitzky 5 items Roy Klieger 1 items Saar Brodsky 1 items Tom Pachys 1 items Tomer Bar-Zeev 1 items Yoni Epstein 1 items Notes > FinTech > The case for innovative Proptech models in the COVID era and beyond July 21, 2020 The case for innovative Proptech models in the COVID era and beyond Tomer Michaeli General Partner Viola Fintech FROM HUMAN TO ALGORITHMS: THE FUTURE OF TRUST Generative AI In Fintech – A Look at the Latest Trends and Use Cases FinTech in 2023 – Viola’s Predictions Fintech for Elderly – Part 2 Fintech for Elderly – Part 1 Fintech 2021 – Leaning into the New Year All Hail Liquidity The case for innovative Proptech models in the COVID era and beyond What Fintech VCs are looking for Post-COVID: Takeaways from #ViolaVirtual event How Israeli Companies Are Using Data To Revolutionize Insurtech Why the future looks brighter for commercial insurance thanks to Planck Re’s automated data insights Why FinTech entrepreneurs may be missing out on major opportunities by overlooking WealthTech [VIDEO] How Banks Innovate: Insights from Scotiabank, Israel Discount Bank, Citi, Pepper and SundaySky For decades, the real estate industry was complicated and analog. But the 2008 financial crisis enabled startups to leverage technology to find new opportunities in falling real estate prices. This led to a steady increase in “Proptech” investment, which reached a peak of $15B in 2019. Global investment in Proptech 2020 was set to continue this trend, but COVID’s effect on the real estate industry has been significant due to the negative effects on the underlying assets. In the commercial real estate market, “working from home” made demand for shared office space and commercial real estate drop to all-time low. In the residential real estate market, mortgages were not spared from the general consumer credit crunch. But even as it hits the real estate industry, COVID-19 will have a positive effect on the adoption of Proptech, because of 2 main factors: Proptech enables the digital transformation of the real estate transaction and it also enables liquidity. 1) Going digital has never been so important Real estate is a business that has traditionally relied on face-to-face interaction. With home buying being the most valuable asset transaction most of us will ever make in our lives, real estate has relied heavily on the human element. It has also been heavily dependent on middlemen, such as brokers, realtors and appraisers. But a significant component of Proptech is its ability to transform human-reliant processes into virtual ones. Home buying has already transitioned from a completely offline process to one which has its start online. Companies are using technologies such as AI/ML to list properties and target buyers; VR, AR and IoT to virtualize and automate the home viewing experience; and open banking to streamline the mortgage application process. COVID-19 will only accelerate the adoption of these technologies by real estate buyers and sellers. 2) Proptech enables liquidity Real estate is a highly illiquid asset class. It takes a lot of time to sell and buy because it’s such a large transaction that requires so many manual stages and middleman intervention. It usually requires obtaining a mortgage to finance it (involving all the bureaucracy that comes with interacting a large financial institution), insurance, title transfers, appraisals, etc. This is in opposition to the modern consumer lifestyle, which has been evolving through the forces of urbanization and the gig economy, and which is fundamentally opposed to having significant portions of net worth tied to an illiquid asset. One of the greatest promises of Proptech is that it will streamline these processes, thereby making this asset class much more liquid. Moreover, lower transaction costs and complexities will draw more capital that is searching for yield in the post-COVID era, when interest rates are at historic lows. Proptech and the COVID effect Proptech already disrupted many aspects of the real estate market. Companies such a Zillow and Trulia transformed how listing and home discovery is done, and companies such as Opendoor invented i-buying. At Viola, we have been focusing our interest on some areas of Proptech that we still believe should be revolutionized: The home buying journey, Financing, Investing, and Ancillary services. However, COVID-19 is having a significant impact on almost any industries – and these are no different. As investors, we must analyze these 4 areas through the lens of COVID-19 and re-focus our investment thesis accordingly. Bucket #1: The home buying journey Since 2005, home buyers have increasingly begun their home search journey online as property information became easier to access. In recent years, 51% of home buying transactions were initiated online. Still, the majority of home buyers transition to an offline, complicated, and analog transaction process that is: Enormously costly – commissions, title costs, and other fees can tally to about $20,000 per transaction, not to mention wasted time and opportunity cost. Time consuming – on average, it takes 4.3 months to buy a home, and 2.8 months to sell. AR/VR, IoT and mortgage FinTech startups are disrupting the industry by making it easier for both buyer and seller to automate the real estate transaction and to access financing. Companies of note in Bucket #1: The COVID Effect on Bucket #1: Positive As people continue to worry about the health effects of face-to-face interaction, the digitization process of the few pieces of the journey that are still predominantly face to face will be significantly accelerated. Think about virtual home showing, or self-service house showing powered by IoT devices a la August Home or Alexa. Bucket #2: Financing Financing, be it getting your money in or out of, an illiquid asset is hard and expensive. Therefore, many creative startups came up with ways to expedite and automate these processes. Some examples are companies that deploy a combination of innovation, technology, operational excellence and capital to complete home-buying process in days instead of weeks, bring HELOCs to untapped markets such as the EU, offer equity sharing to millennials, or provide “sell to stay” models to cash-strapped consumers. Companies of note in Bucket #2: The COVID Effect on Bucket #2: Positive In times of crisis, cash is king. Any solution that increases liquidity, especially to consumers who may find it hard to obtain financing from traditional providers such as incumbent banks, have a good chance to thrive in the current environment. Bucket #3: Investing Historically, real estate as an asset class, especially commercial RE, has been an attractive investment. However, barriers such as high upfront investment and its illiquid nature made it suitable only to larger investors that can afford very long investment horizons. As a result, over the past few years, several companies started disrupting this space by digitizing real estate assets, which enable both lower investment amounts as well as liquid markets to trade these assets. Startups are employing various models to disrupt real estate investing, including crowdfunding, utilizing big data analytics to surface high quality investments, employing AI to automatically build diversified RE portfolios, and using DLT to tokenize properties and turn them into transferrable and tradable tokens, representing shares and ownership. Companies of note in Bucket #3: The COVID Effect on Bucket #3: Negative Given the predicted fall in occupancy of commercial real estate properties on the one hand, and the expected surge in missed mortgage payments on the other, real estate prices will decline across the board and real estate investing will take a hit. COVID-19 has caused companies to adopt work from home policies that we believe will persist long after the health effects of the pandemic are past us. As more employees work from home, these companies will require less office space, and the value of commercial real estate assets will fall, which will affect investor appetite for this entire asset class. That said, we still believe that the opening of commercial real estate to non-institutional investors is a positive phenomenon, and in the long term we’re closely watching companies that continue to liquidize these assets to make them a viable part of investment portfolios. Bucket #4: Ancillary services Whether you buy, rent or rent out, any real estate transaction involves many ancillary interactions with financial services providers such as banks, insurance companies or payment processors that provide a slew of services from rent payment to renter’s, home and HOA insurance and security deposits. Many of these transactions are still manual – think paying your rent with checks. Startups are using financial and technology innovation, as well as different distribution and operational models, to provide these services in a more transparent, fast and cost-effective manner. Companies of note in Bucket #4: The COVID Effect on Bucket #4: Neutral While COVID-19 will definitely accelerate the trends of going-paperless for some transactions, such as rent payments (e.g. paying with cards or with Venmo instead of checks), we believe that services such as home insurance will not fundamentally change or be affected by the current crisis. A message from the author: My name is Tomer Michaeli, I’m a General Partner at Viola FinTech. Prior to joining Viola, I was the co-founder (one of three) and VP Operations at Fundbox, a leading global FinTech company in the credit and payments sector. Check out my full bio here. I’ve been interested in the global proptech industry for a long time, and I’m always on the lookout for new investments. If you’re doing something in the Proptech space, and you feel your company falls into one of the buckets I described, ping me. Tags COVIDFinTechProptechREtech More posts by this author 15515 08.07.2024 FROM HUMAN TO ALGORITHMS: THE FUTURE OF TRUST 13829 12.07.2023 Generative AI In Fintech – A Look at the Latest Trends and Use Cases 13271 22.01.2023 FinTech in 2023 – Viola’s Predictions 11.12.2023 | Alex Shmulovich Generative AI – Where Israel Fits In Omry Ben David Noam Inbar Ilan Stein Shaun Zamir 04.02.2025 | Alex Shmulovich | Shaun Zamir 2025 Israel FinTech Report: The Comeback Year Omry Ben David 17.06.2024 | Viola Editorial | Omry Ben David 2024 Israeli Fintech Report & Map Omry Ben David 02.06.2026 | Tal Abuloff | Omry Ben David The Premature Obituary of SaaS (Where Value is Forming and Where it is Not) 29.04.2026 | Bastien Goetschel Most Startups Don’t Fail Because They Stop Growing. They Fail Because They Scale Before They’re Ready. Omry Ben David 16.04.2026 | Tal Abuloff | Omry Ben David The 2 Trillion Dollars Problem 22.01.16 | Ben Mordechai [VIDEO] Israel Growth Summit: Growth Financing Panel (with Goldman Sachs MD, Jonathan Penkin) Financing Panel 22.01.16 | Ben Mordechai [VIDEO] Israel Growth Summit: Growth Financing Panel (with Goldman Sachs MD, Jonathan Penkin) Financing Panel 22.01.16 | Ben Mordechai [VIDEO] Israel Growth Summit: Growth Financing Panel (with Goldman Sachs MD, Jonathan Penkin) Financing Panel Use one of the following emails to contact us based on your goal General: info@viola-group.com IR: ir@viola-group.com Deal flow: df@viola-group.com
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