Nearly half of UK proptech firms are set for ‘survival mode’ over the next three months according to research by the UK PropTech Association.
In a survey of its members on the impact of Covid-19 on their businesses, the UKPA found that 43% of proptech companies are planning for survival over the next quarter, 25% are preparing for stagnation, 6.3% fear closure and a quarter remain bullish and expect growth.
As VC funding dries up, many founders have been forced to put their business operations on ice, endure sleepless nights and, in some cases, have had to completely change their business models.
Cleo Folkes, who founded Property Overview two and a half years ago, told EG that she was in a “desperate situation” having seen a total drop-off in business.
She used to provide property firms face-to-face courses, teaching new employees market basics. But after business “dried up overnight”, Folkes had to restructure and now provides consultancy work around risk management.
“I had to do what I could to survive,” she said.
The Depositary co-founder Kristjan Byfield said that he has had to put the sales push for his newly launched product on ice as a result of coronavirus-related business disruption.
The launch of The Depositary, a platform for agents, landlords and tenants that helps manage the end of a tenancy, has been four years in the making, he said.
“It’s frustrating,” Byfield says. “We were so excited about finally getting to the next stage, and the frustration for us is now being stuck in limbo land. But we have to keep moving forwards.”
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