PropTech Market Update - 1H 2020 - PRELIMINARY CONFIDENTIAL DRAFT - GCA Altium
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PRELIMINARY CONFIDENTIAL DRAFT
PropTech Market Update
1H 2020
EXECUTIVE SUMMARY – 1H 2020 REAL ESTATE TECHNOLOGY
» COVID-19 and the associated economic shut-down has broad implications for the Real Estate and PropTech markets
» Market environment has created both opportunity and dislocation in PropTech and while some companies and market
segments will be negatively impacted, many will benefit from tech tailwinds created by the crisis: PropTech is a massive
market category with sub-verticals that are impacted in very different ways depending on their end-market focus, go-to-market
strategy, distribution channels and revenue models
– Sub-vertical Matters: Residential RE, CRE Office, CRE Multifamily, Mortgage Tech, Hospitality Tech, Construction Tech,
Facilities Management, Data / Analytics businesses, etc. all have very different end-market dynamics that impact
performance
– Business Model Matters: Enterprise vs. B2C; recurring subscription revenue vs. transactional models; and fixed asset cost vs.
variable costs drive preservation of revenue and unit economics
– Scale Matters: Scale platform solutions help enhance ability to weather slowdown and emerge as a leaders and
consolidators going forward vs. point solutions
» M&A and growth investment deals are still getting done despite macro headwinds
– 1H 2020 decline of only ~6% y/y in capital raise activity in the PropTech market despite COVID-19 and Q2 saw a 97%
increase in invested capital y/y – driven by large investments in category leaders Vacasa, AirBnb and Sonder
– $4.4Bn in growth capital raised YTD in the U.S. PropTech space across 136 deals through June 2020
– 36 U.S. PropTech M&A transactions through June 2020, including two significant transactions, First American’s acquisition
of DocuTech and CoStar’s acquisition of RentPath
» GCA believes that PropTech adoption will accelerate due to COVID-19 and the industry will emerge stronger as a result
2
LEADING ADVISORY TEAM FOCUSED ON THE PROPTECH MARKET
GCA U.S. PropTech Team Global Leader in PropTech Advisory
Chris Gough
Managing Director Acquired Majority Acquired by Acquired by Acquired by
interest
Head of Real Estate Technology acquired by
Phone: (415) 318-3658 A Portfolio Company of A Portfolio Company of
cgough@gcaglobal.com
We advised the buyer We advised the seller We advised the seller We advised the seller We advised the seller
Zain Azeem
zazeem@gcaglobal.com
Lizzie Cooperstone Acquired by Majority Interest
Acquired by
Acquired by Acquired by Acquired
lcooperstone@gcaglobal.com
Key Sub-Sector Coverage Verticals
We advised the seller We advised the seller We advised the seller We advised the seller We advised the buyer
Residential RE Software
Commercial RE Software
Acquired by Acquired by Acquired by Acquired by Investment from
Mortgage / Lending
Title / Insurance We advised the seller We advised the seller We advised the seller We advised the seller We advised the seller
Home Services
Facilities Management a portfolio company of
Investment from Acquired by Acquired by MBO backed by
Construction Tech Acquired by
IWMS We advised the seller We advised the seller We advised the seller We advised the seller We advised the seller
3
GCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANK
Global investment bank providing strategic M&A and capital markets advisory services to growth companies and market leaders
STOCKHOLM
MANCHESTER LEEDS
PARIS FRANKFURT
BIRMINGHAM MUNICH
KYOTO NAGOYA
ZURICH TOKYO
LONDON SHANGHAI
NEW YORK LAUSANNE MILAN
NEW DELHI OSAKA
TEL AVIV FUKUOKA
SAN FRANCISCO
TAIPEI
MUMBAI
SINGAPORE HO CHI MINH CITY
Global platform:
Sector expertise: Exceptional cross-
25 offices in key Experienced team:
Expansive coverage border capabilities:
markets across Over 500 employees
and deep Half of all
America, Asia and across the globe
specialization transactions
Europe
Broad spectrum
Diversified
Strong reputation of clients:
business model:
and track record: Leading
Geographically
High number of conglomerates, top
balanced, synergistic
repeat clients and private equity firms
and complementary
referrals and emerging high-
focus areas
growth companies
4
GCA operates as GCA in America and Asia, and GCA Altium in Europe
I. COVID-19 UPDATE
II. PROPTECH MARKET SUMMARY
APPENDIX
5
MARKET UPDATE: COVID-19
Key U.S. Developments Select Implications for PropTech
» US in Various Stages of Reopening ✓ Residential Real Estate Remains “Essential”
» All 50 states had begun to reopen in some way after the » Consumer interest rates remain at historically low levels ➔
coronavirus drove the country into lockdown starting in driving significant refinancing activity and will support home
March values on new purchase
» Now, a growing number of states are pausing plans to » Crisis has impacted spring buying season ➔ likely leads to
reopen, amid rising case counts(1) pent-up demand in 2H 2020 vs. evaporation of demand
» Unemployment Claims Reached Record High But Have Since » Adoption of tech solutions in RE transaction increasing ➔
Decreased virtual showings, transaction management software,
eSignatures, virtual notary, digital loan origination, etc.
» In the week ending June 20, the 4-week moving average was
1,620,750 filed, a decrease of 160,750 from the previous » Tech to drive cost savings and productivity enhancement
week's average for transaction exposed models (e.g., title / brokerage, etc.)
» Strong Bipartisan Fiscal Action ✓ Commercial Real Estate Needs Tech to Adapt to Challenging
Macro Trends
» $2+Tn CARES act passed on 3/27 to provide relief to
unemployed and small businesses » Highly challenged traditional retail environment
» White House approved an additional ~$480Bn bill on 4/21 » Corporations rethinking their approach to office space in
replenishing small business loans program post-COVID world ➔ drives need for enhanced tenant
engagement, space utilization and building / facilities
» Unprecedented Federal Reserve Response
management tools
» Fed reduced the fed funds rate to 0-0.25% on 3/15 and
✓ Accelerated Adoption of PropTech Platforms
intends to maintain this target
» COVID impacts expose shortcomings of “traditional”
» Introduced “unlimited” bond buying program
approach across RE end markets ➔ PropTech delivers
» Government Response Targeted to Real Estate operating efficiencies, enhances customer / consumer
» FHFA announced that Fannie Mae and Freddie Mac will experience, data-driven decision making and ability to
extend moratorium on single-family evictions and operate virtually
foreclosures until at least August 31, 2020 ✓ Scale Players Likely to Extend Lead
» Well-capitalized scale leaders will extend their competitive
Notes:
(1) As of June 30, 2020. advantage in this market 6
1H 2020 PROPTECH SECTOR SUMMARY – KEY-SUB SEGMENT TRENDS
» Fundamentals remain strong: RRE transaction delays will drive strong 2H 2020 market activity ➔ COVID-19
impacted key spring selling season in RRE, but historically low interest rates and strong showing activity &
mortgage applications provide strong positive leading indicators for transaction rebound
Residential Real Estate » COVID-19 accelerating “digitization” of the transaction ➔ virtual showings, performance / data-driven
Technology customer capture, virtual notary, transaction management, broker management tools, tech driven escrow /
title all will benefit from adoption tailwinds in post-COVID market
» Integration and combination of tool sets is critical to drive productivity ➔ expect continued consolidation of
toolsets in RRE to create central “platforms” for brokers / teams / agents
» Market outlook for CRE is mixed and highly end-market dependent – hotel vs. retail vs. CRE office vs.
multifamily
» CRE building management solutions remain highly attractive segments for investors ➔ large TAM market
remains very fragmented
Commercial Real Estate » CRE office solutions that deliver operational efficiency drive high ROI and are in high demand (energy
Technology efficiency, utilities bulling, predictive maintenance, etc.)
» Tenant engagement, tenant experience and tenant safety tools are also critical in post-COVID
environment
» Continued activity and strong momentum in multifamily management software, especially for firms that are
using tech to enhance tenant experience
» Expect adoption of construction tech to accelerate in post-COVID environment – digitization of building
Construction models, collaboration tools, jobsite management tools (vendors / labor) and marketplace models will drive
Technology growth
» Off-site / modular construction likely to benefit as well
7
COVID-19 IMPACT IN RRE: DEMAND DELAY VS. DEMAND DISAPPEARANCE
Economic indicators points towards strong recovery in RRE transaction activity in 2H 2020
1 CONSTRICTED SUPPLY AS INVENTORY NEAR RECORD LOWS(1)
2 MORTGAGE RATES NEAR HISTORIC LOWS(2)
2.4 5.3%
Housing Inventory (MM) 30-Year Fixed Rate Mortgage Average
2.2
4.8%
2.0
1.8 4.3%
1.6
3.8%
1.4
3.3%
1.2
3.1%
1.0 2.8%
May-16 May-17 May-18 May-19 May-20 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
3 ABRUPT FALLOFF IN TRANSACTIONS IN COVID(1, 3)
4 BUT PRICING REMAINS STEADY AND CLEAR SIGNS OF
RECOVERY UNDERWAY(4)
U.S. pending home sales surged a record 44% in May $370,000
Median Sales Price
6.0 60%
$320,000
5.6
40%
5.2 $270,000
Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
4.8 20%
REAL ESTATE SHOWING INDEX (7-DAY MOVING AVERAGE,
4.4 JANUARY NORMALIZED)(5)
0%
Showings currently up 24% y/y as a leading indicator to activity
4.0
60% 2019 2020
3.6 (20%) 50%
Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 20% 30%
Existing Home Sales (MM) (20%) Jan Feb Mar Apr May Jun
Mortgage Applications (Week-Over-Week Growth)
Source:
(60%)
(1) National Association of Realtors.
(2) Freddie Mac.
(4) U.S. Department of Housing and Urban Development.
(5) ShowingTime Real Estate Showing Index as of 6/16/20.
8
(3) Mortgage Bankers Association of America, includes refinancings.
COVID-19 ACCELERATES PATH TO DIGITIZATION IN RRE
COVID-19 driving the digitization of the RRE transaction across the entire transaction ecosystem
Incumbent Innovators
ShowingTime’s Virtual Showings were incorporated Lone Wolf’s Marketplace hosts a library of curated Clear Capital’s OwnerInsight provides a no-cost,
by agents to serve their clients in a safe, responsible digital tools for agents and brokerages to plug and play nationwide solution to maintain proper social
manner in response to the challenge imposed by the into zipForm Plus / TransactionDesk. The core purpose distancing while giving lenders, appraisers, and AMCs
pandemic. ShowingTime developed streaming video of Marketplace is to put the industry's most innovative timely information from inside homes they are unable
technology and an appointment center to allow people digital tools in the hands of real estate agents and to physically enter because of COVID-19. OwnerInsight
to continue viewing properties virtually brokerages at a time when they need them the most, works seamlessly on camera-enabled mobile devices
and to provide the first end-to-end transaction with no need for app downloads, and photo metadata
experience of its kind is captured to ensure protection against fraud
1H Funded “Digitization” RRE Tech Players
DISCOVERY / BROKERAGE / INVESTMENT ($MM) CLOSING / TITLE / VALUATION ($MM)
Date Company 1H 2020 Raised Funding to Date Date Company 1H 2020 Raised Funding to Date
5/14 $40 ~$160 5/21 $123 ~$230
3/10 $60 $150 5/21 $29 $49
1/7 $50 $133 4/15 ~$26 $74
$86 Equity /
1/7 $36 2/6 $65 $130
$200 Debt
Source: Capital IQ as of 6/30/20, Pitchbook, press releases.
9
CRE MARKET DRIVERS & TAILWINDS IN TENANT EXPERIENCE/OPERATIONAL EFFICIENCY
RISING CMBS DELINQUENCY REFLECT CRE MARKET CRE Tech Post-COVID – “Return to Work Tech”
1 CHALLENGES(1)
Retail and Hospitality especially hard-hit by COVID-19 impact
Building Engine’s Building Operations Platform offers core capabilities of its
30% CMBS DELINQUENCY RATES operations platform with optimizations for COVID-19 at no cost through the end
of 2020, communication via web, email and text, virtual work orders and building
25% inspections with COVID-19 optimized templates
Lodging: 24%
20%
Retail: 18%
15% Equiem’s Return to Workplace Solution assists in retaining tenants and returning
Overall Delinquency: 10% them safely to the building. Adapts operations to the 'new normal' by providing
10%
controlled building access, touchless door, turnstile, elevator access and visitor
5% Multifamily: 3% management, touchless retail, amenity reservations, a virtual concierge and more
Office: 3%
0% Industrial: 2%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Rise Buildings incorporated new technology to adapt to the post-COVID world.
Their platform integrates real time communication, news updates, visitor and
YEAR-OVER-YEAR PERCENTAGE CHANGE IN US REIT
2 PROPERTY INDICES AS OF APRIL, 2020(1)
delivery management reducing the interactions between visitors and staff,
automated package management and touchless door access
(53%) Hotel Multi-Family Tenant Experience
(48%) Retail
(25%) Health Care SmartRent is an enterprise home automation company developing software and
hardware to help owners, property managers and renters in multifamily
(17%) Office communities. The Company provides property owners and managers a platform
to better monitor and protect their assets, and create operational efficiencies
(15%) Multifamily
Industrial 14%
Zego’s technology removes the friction from the most critical resident
Cell Towers 31%
touchpoints and automates the tasks that consume community managers. From
Data Centers 34% payments and utilities, to communications and smart devices, Zego delivers
portfolio-wide efficiency, higher NOI, and more engaged residents
Source: Capital IQ as of 6/30/20, Pitchbook, press releases.
(1) Trepp CMBS Delinquency Rate (30+ Days).
(2) Nareit, "FTSE Nareit U.S. Real Estate Index," accessed 4/16/2020.
10I. COVID-19 UPDATE
II. PROPTECH MARKET SUMMARY
APPENDIX
11PRIVATE CAPITAL DEAL DASHBOARD – 1H 2020
Financing Activity Select 1H 2020 Financing Transactions
($MM) ($MM)
Equity Raise Value Debt Raise Value Number of Deals
Latest
$3,709 Select Reported
All Others
Date Company Investor(s) Amt. Invested Funding to Date Valuation
96
90 6/24 $170 ~$560 $1,300
$1,085
$2,725 6/3 $90 ~$185 NA
73 72
64 65 64 6/2 $108 ~$635 NA
$2,214 $2,159
$969
$1,884 $291
$397
5/21 $123 ~$230 $623
51
$403
5/8 $74 ~$399 $2,250(3)
$1,356
$50 $1,168 $2,624
4/30 $150 ~$400 $5,000
$225 All Others
$1,923
$1,756 $1,761
$1,481 $643 4/20 $150 $155 NA
$1,306
$943
$1,000(1) Equity
$633 4/6 $6,400(2) NA
/ $1,000 Debt
2/6 $65 $130 NA
Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20
Avg. Deal 1/7 $50 $133 $575(3)
Value:
$25.6 $14.7 $18.3 $22.8 $21.4 $24.1 $10.0 $36.5
Source: Capital IQ as of 6/30/20, Pitchbook, CB Insights, press releases. (1) AirBnB raised $1Bn in debt and equity (mix not disclosed) and $1Bn of debt on 4/6.
Excludes Oyo Rooms and The We Company financing rounds.
Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.
(2) Debt and equity mix not disclosed.
(3) Estimated valuation per Pitchbook.
12PRIVATE CAPITAL DEAL DASHBOARD – 1H 2020
Financing Activity
($MM)
NASDAQ Index S&P 500 Index Equity Raise Value Debt Raise Value
Trough to Peak Increase(1):
$2,500
$2,411
NASDAQ: 44%
20.0%
S&P 500: 36%
9%
$2,000 10.0%
$1,000
0.0%
$1,500
(6%) (10.0%)
$1,000
$630 $668 (20.0%)
$1,411
$358 $85
$500
$199 (30.0%)
$86 $545
$0 (40.0%)
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
# of Deals: 26 # of Deals: 24 # of Deals: 14 # of Deals: 21 # of Deals: 28 # of Deals: 23
Source: Capital IQ as of 6/30/20, Pitchbook, CB Insights, press releases. (1) 3/23/20 represents trough; 6/29/20 represents peak.
Excludes Oyo Rooms and The We Company financing rounds.
Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.
13REAL ESTATE PRIVATE COMPANY FUNDING LEADERS
Other Mega Funding Leaders
Equity Raised to Date:
>$500MM
1 ($6.4Bn Equity
/ Debt)(1)
($614MM) ($468MM)
$200MM - $500MM
1 ($3.0Bn) ($8.9Bn Equity /
$6.1Bn Debt)(1)
47 companies
$100MM - $200MM
1 raised $100MM+
142 companies
raised $25MM+
$50MM - $100MM
$25MM - $50MM
Source: Pitchbook, CB Insights, Company filings, Company websites, press releases.
(1) Debt and equity mix not disclosed.
(2) Funding totals exclude secondary transactions.
14STATES TITLE RAISES $123MM IN SERIES C ROUND
Transaction Overview States Title Overview
Headquarters: San Francisco, CA
− On May 21, States Title announced that it Founded: 2016
had raised $123MM in equity led by
Description: Offers patented machine intelligence-enabled tech solutions to
Greenspring Associates with participation
digitize and automate residential real estate closings. States Title
from new investors Horizons Ventures, and its family of brands – North American Title Company (NATC)
Series C Eminence Capital, HSCM Bermuda as well as and North American Title Insurance Company (NATIC) – offers
Led By existing investors Foundation Capital, solutions for lenders, real estate agents, title agents and
Assurant, Fifth Wall Ventures, Lennar homeowners that make closings more simple and efficient
Ventures and SCOR Global P&C Ventures Current Investors:
− This brings the Company’s total attributed
funding to ~$230MM to date
$123MM Raised
− States Title plans to use its new funding to
transform real estate closings at lower costs
Select Deal Commentary States Title Fundraising Timeline(1)
“that
States Title has developed an automated, patented technology
streamlines the laborious title and escrow process, emerging
as the market leader in an industry that historically lacks
meaningful innovation. We are thrilled to support States Title as
they advance the vision of an instant mortgage that closes with
one tap. Especially in the current economic climate, the $229.6
mortgage industry needs to be re-imagined with transformative
technological solutions to reduce costs and improve the $123.0
customer experience. States Title is leading the vanguard of this $106.6
$81.6
transformation.” Jim Lim, Managing General $10.2 $23.2 $58.4
$25.0
$81.6 $106.6
$13.0 $23.2
Partner, Greenspring Associates
Seed Series A Series B-I Series B-II Series C
(11/25/2016) (12/20/2017) (1/6/2019) (6/20/2019) (5/21/2020)
Previously Raised New Funding
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.
(1) Per Crunchbase data. 15STATES TITLE RAISES $123MM IN SERIES C ROUND (CONT’D)
Product Overview
Instant Title Underwriting – Predictive analytics algorithm that
Can reduce closing from 30 to 45 days to 20 utilizes a forward-thinking risk-based insurance model to clear title
commitments instantaneously
Borrowers authorize closing
2019A revenue of ~$200 million
agents to sign on their behalf
Remote Closings – To ensure
business continuity and accelerate Remote Online Notarization
1 of the top 2 largest bank lenders & 2 of the top
transactions, States Title offers powered by
10 largest nonbank lenders as customers
multifaceted state and lender-
specific eClosing solutions Comprehensive gap insurance
Transaction volume grew by 100 times in 2019
from closing to recordation
compared to the year prior
Solution Overview
For Lenders For Real Estate Professionals
Predictively underwritten title insurance Experienced services and guidance
& escrow processes throughout the home purchase or sale
White-label digital closing experience process
products Customer closing cost and mortgage
Resale of direct title services and direct qualification calculators
settlement & escrow services
For Title Agents For Homeowners
Quick and straightforward underwriting Fast efficient title and escrow services
services, with a counsel that guarantees a Machine intelligence used to buy, sell or
response back to your questions within 1 refinance homes
hour
Fast and transparent agency application
process for qualified agents
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.
16SPRUCE RAISES $29MM IN SERIES B ROUND
Transaction Overview Spruce Overview
Headquarters: New York, NY
− On May 21, Spruce announced that it had Founded: 2016
raised $29MM in equity led by Scale Venture
Description: Neutral third party that helps coordinate transactions between
Partners with participation from Zigg Capital
homeowners and lenders / real estate institutions with a digital-
and Bessemer Venture Partners first experience. Spruce takes handles title search, policy,
Series B settlement and escrow processes by pairing intuitive software
Led By − This brings the Company’s total funding to
with high-touch human expertise
~$49MM to date
Current Investors:
− Spruce plans to use its new funding to
accelerate development of its proprietary
technology and deepen integrations with
$29MM Raised client partners
Solution Overview Spruce Fundraising Timeline
Lenders
Modern title & closing technology
Detailed audit trails of the entire transaction from
beginning to end
Integrate with current loan origination system or
proprietary transaction software
Real Estate Tech
Partner with industry experts to create optimal
workflows $49.1
Digital closing experience has an NPS of 60 and
allows customers to view & sign documents, link
their bank account, and schedule closing with $29.0
ease $20.1
Homeowners
Spruce provides a transaction coordinator $4.5 $15.6 $20.1
supported by a team of in-house experts
$4.5 $4.5
Average closing fee of $495(1)
Safely receive funds and communicate about Series A Series A-II Series B
transactions via secure portal (5/26/2017) (7/18/2018) (5/21/2020)
Previously Raised New Funding
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.
(1) Excluding Colorado and Florida; Company website as of 7/10/20. 17ZUMPER RAISES $60MM IN SERIES D ROUND
Transaction Overview Zumper Overview
Headquarters: San Francisco, CA
− On March 10, Zumper announced that it had Founded: 2012
raised $60MM in equity led by e.ventures
Description: Developer of a search-through-close rental platform where a
with participation from a number of existing
renter can search, schedule a tour or apply through their phone.
investors at a post-money valuation between The platform also provides landlords with online tenant screening
Series D $400MM and $600MM, bringing the and rent collection services
Company’s total funding to $150MM to date
Current Investors:
− Zumper noted that is experiencing 100% y/y
revenue growth and is on track to reach 80
million users on its platform in 2020
$60MM Raised − Zumper plans to use its new funding to
strengthen its engineering team and invest
further in its ability to process rental
payments online
Product Overview Zumper Fundraising Timeline
Find Houses, Rooms or Apartments for Rent ($MM) Seed Series A Series A-I Series A-II Series B Series C Series D
Date 5/1/12 3/3/14 6/25/15 2/1/16 10/18/16 9/17/18 3/10/20
Receive real-time alerts and instantly apply
Filter by location, price range, bedroom count, pet-friendly or Equity Raised $1.7 $6.8 $6.4 $11.8 $17.7 $45.7 $60.0
amenity and set an alert to get notifications when a new listing is Total Raised to Date $1.7 $8.5 $14.9 $26.7 $44.3 $90.0 $150.0
(1)
posted
Post Rental Listings and Collect Rent Select Deal Commentary
Post rental listings and screen tenants
Collect rent with online payments
Generate more leads with Zumper’s network
“theZumper’s progress so far is striking, and it has quickly become
leading independent company focused on the rental market.
Acquisition Timeline We believe that Zumper is well positioned because of its focus on
providing an exceptional product for renters and great value for
Sep
2019
Web-based software platform that automates the entire rental
process for landlords, leasing agents and tenants
landlords and multifamily properties. ”
Operates an online map-based apartment rentals search Mathias Schilling, Co-Founder &
Jan
2016
website and mobile application for consumers to search for Managing Partner, e.ventures
rentals by geographic location
Source: Pitchbook, TechCrunch, Company website, press releases.
(1) Post-money valuation estimates per Pitchbook and TechCrunch. 18HOUSECANARY RAISES $65MM IN SERIES C ROUND
Transaction Overview HouseCanary Overview
Headquarters: San Francisco, CA
− On February 6, HouseCanary announced that Founded: 2013
it had raised $65MM in equity led by Alpha
Description: Developer of a real estate analytics platform designed to offer
Edison, Morpheus Ventures and PSP Growth
residential real estate information for every block and property
− This brings the Company’s total funding to and help people make better real estate decisions. The company's
Series C real estate analytics platform aggregates millions of data
$130MM to date
elements to accurately define and forecast values and market
− HouseCanary plans to use its new funding to influences, enabling individual buyers and real estate
continue to build the most accurate professionals to make better buying and selling decisions
valuations in the housing market, continue to Current Investors:
build its world-class team to accelerate
$65MM Raised development and broad market adoption of
HouseCanary and invest in its leading-edge
technology
Product Overview HouseCanary Fundraising Timeline
($MM) Early Stage VC Series A Series B Series C
Date 3/8/17 4/7/17 5/1/17 2/6/20
Equity Raised $0.6 $33.0 $31.0 $65.0
Total Raised to Date $0.6 $33.6 $64.6 $129.6
Data Explorer - Proprietary Property Explorer - Data & Market Explorer -
analytics for more than 100 details around individual Interactive neighborhood
million US homes homes, (e.g., historic price analysis (rental return, Select Deal Commentary
growth) affordability, etc.)
“creative
We invest in disruptive companies that are innovative and
in how they tackle the changing landscape. Through their
proven software and data driven technology HouseCanary is
streamlining real estate transactions and changing the future of
Agile Insights - Context Agile Evaluation - Agile Certified - Security
the industry. ”
around a home’s true Condition-informed of high-confidence AVM Joseph Miller, Managing Partner,
value with individual BPO alternative backed by transferable Morpheus Ventures
home reports insurance policy
Source: Pitchbook, Company website, press releases.
19CHERRE RAISES $16MM IN SERIES A ROUND
Transaction Overview Cherre Overview
Headquarters: New York, NY
− On February 5, Cherre announced that it had Founded: 2016
raised $16MM in equity led by Intel Capital
Description: Provides investors, insurers, real estate advisors and other large
with participation from Navitas Capital,
enterprises with a platform to collect, resolve, and augment real
Carthona Capital, Zigg Capital, Dreamit estate data from public, private and internal sources. Cherre
Series A Ventures and Silicon Valley Bank allows customers to evaluate opportunities and trends faster and
more accurately, while saving on manual data collection and
− This brings the Company’s total funding to
analytics costs
$25MM to date
Current Investors:
− Cherre plans to use its new funding to
continue powering its fully-integrated data
$16MM Raised systems
Product Overview Cherre Fundraising Timeline
($MM) Seed VC Series A
Date 10/1/18 2/5/20
CoreAugment - Data network provides updated real estate data
Equity Raised $9.0 $16.0
Total Raised to Date $9.0 $25.0
Select Deal Commentary
CoreConnect - Ability to connect internal and external data
“ofWe see Cherre as critical infrastructure to accelerate the future
this industry. Our customer diligence repeatedly indicated
CoreExplore - Asset, community and ownership information for Cherre’s AI-enabled platform was a foundational pillar — a data
properties within the database system of record for large enterprises across the real estate
segment. We’re excited to help accelerate Cherre’s global growth
trajectory.
” Trina Van Pelt, Vice President,
CorePredict - AI engine and real estate professionals available
Intel Capital
Source: Pitchbook, Company website, press releases.
20CREXI RAISES $30MM IN SERIES B ROUND
Transaction Overview CREXi Overview
Headquarters: Marina Del Rey, CA
− On January 24, CREXi announced that it had Founded: 2014
raised $30MM in equity led by Mitsubishi
Description: Provider of a platform that combines an active sales and leasing
Estate Company, Industry Ventures, and
marketplace with marketing, analytics and deal management
Prudence Holdings with participation from tools designed to help brokers, buyers and tenants eliminate
Series B Lerer Hippeau Ventures and Jackson Square time-consuming processes, find properties and close deals faster
Ventures
Current Investors:
− This brings the Company’s total funding to
$45MM to date
− CREXi plans to use its new funding to grow its
$30MM Raised core business of broker services across the
sales, leasing and auction functions, and
accelerate the refinement and expansion of
buyer and tenant resources
Product Overview CREXi Fundraising Timeline
($MM) Seed VC Series A Series B
Sell
Date 11/17/15 5/21/18 1/24/20
Equity Raised $4.3 $11.0 $30.0
Marketplace Listings Marketing
Total Raised to Date $4.3 $15.3 $45.3
CRM Data & Analytics
Select Deal Commentary
Communication & Collaboration Tools Support
“younger,
The CRE industry is evolving, and market players, especially
digitally native generations are seeking out platforms
Auction
that provide free and open access to information. CREXi directly
Access 400,000+ qualified buyers through the live auction platform addresses this market need, providing fair access to a range of CRE
65% sell-through rate, 100% close of escrow and 121% above the reserve price
information. As CREXi continues to build out its stable of services,
Buy features, and functionality, we’re thrilled to partner with them and
support the company’s continued momentum. ”
Marketplace for commercial properties for sale and lease Gavin Myers, General Partner,
Prudence Holdings
Source: Pitchbook, Company website, press releases.
21ROOFSTOCK RAISES $50MM IN SERIES D ROUND
Transaction Overview Roofstock Overview
Headquarters: Oakland, CA
− On January 7, Roofstock announced that it Founded: 2015
had raised $50MM in equity led by SVB
Description: Marketplace connecting buyers and sellers of single-family rental
Capital with participation from Citi Ventures,
homes, offering investment properties in top U.S. markets. The
Fort Ross Ventures, 7 Global Capital, Khosla Company provides the resources for investors to buy, own and
Series D Ventures, Bain Capital Ventures, Lightspeed sell real estate online, including data analytics, property
Venture Partners and Canvas Ventures management oversight and other tools
− This brings the Company’s total funding to Current Investors:
$133MM to date
− Roofstock plans to use its new funding to
$50MM Raised invest in its data science, product and
engineering capabilities
Product Overview Roofstock Fundraising Timeline
Buy ($MM) Series A Series A-I Series B Series C Series D
Buy properties, portfolios or property shares Date 5/1/15 12/29/15 11/21/16 4/16/19 1/8/20
Search, analyze, check out and close on the platform Equity Raised $6.3 $7.0 $20.0 $50.0 $50.0
0.5% commission for buyers Total Raised to Date $6.3 $13.3 $33.3 $83.3 $133.3
Own
Third-party property management teams vetted by Roofstock Select Deal Commentary
handle day-to-day operations and tenant concerns
Sell
$2Bn in transaction volume facilitated since inception
“space.
Roofstock is in the vanguard of the rapidly-growing proptech
As startups continue to broaden access to financial services,
Close in an average of 15 days
2.5% commission for sellers
we see real estate as an incredibly attractive asset class for retail
investors looking to go beyond the typical stock and bond
Acquisition Timeline
portfolio. ”
Property management firm certified by leading institutional Sulu Mamdani, Managing
Jul
2018
lenders in the space as an approved property manager for large Partner, SVB Capital
SFR portfolios
Source: Pitchbook, Company website, press releases.
22NOTARIZE RAISES $25.7MM IN SERIES C ROUND
Transaction Overview Notarize Overview
Headquarters: Boston, MA
− On April 15, Notarize filed that it had raised Founded: 2015
$25.7MM in equity led by Polaris Partners
CEO: Patrick Kinsel
and Hyperplane Venture Capital
Description: Provider of a document management platform oriented towards
− This brings the Company’s total funding to the real estate industry, allowing consumers and enterprises such
Series C
$74MM to date as lenders, insurers and title agents to sign and notarize
documents online
Current Investors:
$26MM Raised
Notarize Highlights Notarize Fundraising Timeline
($MM) Seed Series A Series B-I Series B-II Series C
Legally Sign & Subscription and Per- Date 5/15/15 7/5/16 4/20/19 9/4/19 4/15/20
Notarize Documents Available 24/7 Notarization Pricing Equity Raised $2.5 $8.5 $20.0 $17.0 $25.7
100% Online Plans Total Raised to Date $2.5 $11.0 $31.0 $48.0 $73.7
Notarize Products Select Deal Commentary
eSign
Electronically sign any document “legislation
Notarize has been on a trajectory from day one, influencing
and building the technology, relationships and
Free service
infrastructure to change business processes, while also creating a
Online Notarization
superior customer experience for an antiquated process. Notarize
Connect with a commissioned notary public
24x7 to sign & notarize documents saw the potential to address the pain points of traditional notary
with a secure, streamlined solution that is already saving
Real Estate Closings government, businesses and consumers countless hours and
Signers can electronically review, sign and
notarize real estate documents dollars. ” Dave Barrett, Managing Partner,
Connects the mortgage industry on 1 platform
Polaris
Source: Pitchbook, Company website, press releases.
23HEALTHY M&A MARKET
1H 2020 U.S. PropTech M&A Activity Select U.S. 1H 2020 PropTech M&A Transactions
($MM)
• 1H 2020 M&A activity
− 72% strategic acquirers Enterprise
Buyer Target Announced Date Value
− 28% financial acquirers
30 6/24 NA
27 27 6/24 NA
26
24 5/13 $190
23
3/3 NA
19
2/25 $7,100
17
2/13 $350
2/11 $588
1/22 NA
1/22 NA
Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 1/14 NA
1/8 NA
Source: Pitchbook, 451 Research, press releases.
24FIRST AMERICAN FINANCIAL ACQUIRES DOCUTECH
Transaction Overview FAF Financial Detail(1)
Revenues Adj. EBITDA
− On February 13, First American Financial $6,202
$5,974
Corporation (NYSE:FAF) announced its $5,772 $5,748 CAGR:
$5,407 1%
acquisition of Docutech for $350MM from
Founder & Chairman Ty Jenkins and investor
Acquired Serent Capital. The transaction closed on
March 3
− The all-cash deal is expected to be accretive
to FAF’s full-year 2020 EPS by $0.10
$350MM − Docutech’s leadership and staff are expected $1,091
to remain with the Company following the $777 $790 $734 CAGR: -
$614
Closed transaction 1%
CY17A CY18A CY19A CY20E CY21E
FAF 3-Year Stock Price Performance & Acquisition History ($MM)
CY17A CY18A CY19A CY20E CY21E
$70.00 3.5mm Revenues $5,772 $5,748 $6,202 $5,407 $5,974
(Lien Release Business) February 13, 2020
$65.00 % Growth 3.5% (0.4%) 7.9% (12.8%) 10.5%
December 8, 2017 3.0mm Adj. EBITDA $777 $790 $1,091 $614 $734
$60.00 % Margin 13% 14% 18% 11% 12%
$55.00 2.5mm Adj. EPS $3.70 $4.68 $5.81 $3.45 $3.70
$50.00
2.0mm Stock Data 7/10/20 Valuation Multiples
$45.00 Closing Price $47.77 EV / CY19A Revenue 1.0x
1.5mm 52 Week High $66.78 EV / CY20E Revenue 1.1x
$40.00
52 Week Low $29.36
$35.00 1.0mm EV / CY19A Adj. EBITDA 5.5x
$30.00 FD Shares Outstanding 113.7 EV / CY20E Adj. EBITDA 9.8x
0.5mm Equity Value $5,429
$25.00
Plus: Debt & Minority Interest $1,623 Price / CY19A EPS 8.2x
$20.00 0.0mm
Less: Cash and Equivalents ($1,050) Price / CY20E EPS 13.8x
Apr-18
Apr-19
Apr-20
Jan-18
Jan-19
Jan-20
Oct-17
Oct-19
Jul-17
Jul-18
Oct-18
Jul-19
Jul-20
Enterprise Value $6,003
Source: Capital IQ as of 7/10/20, Wall Street Research, Company websites, press releases and earnings transcripts.
(1) Projected figures per Wall Street research consensus. 25FIRST AMERICAN FINANCIAL ACQUIRES DOCUTECH (CONT’D)
Strategic Rationale Select Docutech Customers / Partners
Founded in 1991, Docutech provides Founded in 1889, First American
dynamic document technologies Financial is a financial services
that streamline and financial provider focusing on the real estate
transactions for consumers and industry, offering insurance (title
lenders. The company generates and home), lender solutions and real
revenue on a per-order model estate data & analytics
The acquisition of Docutech will give FAF an end-to-end digital mortgage
platform, improving connectivity with lender customers and providing
additional upside in the origination market +175 Lenders
Docutech Offerings Select Transaction Commentary
ConformX Solex
Document generation engine for the eDelivery, eSign, eClose and eVault “ [This acquisition] reflects our dedication to improving the home-
lending industry platform, integrating with ConformX
buying experience and driving the digital transformation of the
real estate settlement process. Together, we’re uniquely
Docutech’s flagship solution dynamically positioned to provide collateral file management from the
creates document packages, leveraging
inception of the mortgage process through post-closing, which will
integrations with loan origination systems Solex Collaboration Platform
to eliminate data entry, improve
compliance, reduce operational costs and
Automates settlement/closing agent ”
help accelerate the evolution of real estate closings.
fee verification for mortgage lenders
accelerate transactions. The platform Dennis Gilmore, CEO, First
supports first mortgage, home equity and American Financial
personal unsecured loan lending
Income Verification
Processes 15%+ of U.S. Automates tax transcript processing to
mortgage volume verify income and improve compliance
Source: Company websites and press releases.
26COSTAR ACQUIRES RENTPATH
Transaction Overview CoStar Group Financial Detail(1)
Revenues Adj. EBITDA
− On February 11, CoStar Group announced its $1,858 CAGR:
plan to acquire the assets of RentPath from 18%
$1,600
TPG Capital and Providence Equity
$1,400
− The all-cash deal is valued at $588MM, ~2.6x
Acquired EV / 2019A Revenue and ~12.5x EV / 2019A $1,192
EBITDA. RentPath’s revenue and EBITDA $965
declined by 9% and 28% from 2018,
respectively $645 CAGR:
$507 $510 23%
− CoStar plans to integrate RentPath’s assets in $418
$588MM $280
its Apartments.com network
Closed
CY17A CY18A CY19A CY20E CY21E
CoStar Group 3-Year Stock Price Performance & Select Acquisition History
$820.00 2.0mm
October 1, 2019 June 24, 2020
$720.00 1.8mm
September 12, 2017 1.6mm
$620.00
October 12, 2018 1.4mm
$520.00 1.2mm
July 18, 2017 February 11, 2020
$420.00 1.0mm
$320.00 June 20, 2019 0.8mm
0.6mm
$220.00 November 8, 2018
0.4mm
$120.00 0.2mm
$20.00 0.0mm
Apr-18
Apr-19
Apr-20
Jan-18
Jan-19
Jan-20
Oct-17
Oct-18
Jul-17
Jul-18
Jul-19
Oct-19
Jul-20
Source: Capital IQ as of 7/10/20, Wall Street Research, Company websites, press releases and earnings transcripts.
(1) Projected figures per Wall Street research consensus. 27COSTAR ACQUIRES RENTPATH (CONT’D)
Strategic Rationale RentPath Highlights
28,000 core advertising
Founded in 1989, RentPath offers Founded in 1987, CoStar conducts 9 million monthly unique visitors
customers across network of
digital marketing solutions for the expansive, ongoing research to in 2019
websites
rental property industry through its produce and maintain the largest
portfolio of well-known apartment and most comprehensive database
and home search websites of commercial real estate
Select Transaction Commentary
information
“record
RentPath has a 30-year track
of outstanding service to
“CoStar
We are very excited to be joining
as part of the
the multifamily industry, Apartments.com network. Our
developing thousands of customers have an ever increasing
meaningful customer relationships number of choices when
[…] We believe that RentPath’s considering where to spend their
talented and experienced marketing dollars. With CoStar’s
employees will become valuable commitment to invest in the
contributors not only to our RentPath family of sites, we will be
Apartments.com network of sites
“ in a position to offer our customers
The acquisition of RentPath will significantly expand CoStar’s online rental but across all of our marketplaces. “
the best options to reach potential
search market share, bringing it to 60,000+ advertising customers across the renters.
combined network of websites, and allow it to target an expanded universe of
renter niches Andrew Florance,
Marc Lefar, CEO,
Founder and CEO,
RentPath
CoStar expects to achieve significant integration synergies over 12-18 months, CoStar Group
allowing it to increase investment in marketing. The increased scale of CoStar’s
rental search business will also provide leverage to reduce advertising unit costs
CoStar plans to focus on overlooked market segments such as landlords with
smaller portfolios and properties with fewer than 100 units, offering the
integrated screening, leasing and rent payment tools developed for
Apartments.com on RentPath’s websites
Source: Company websites, filings, earnings transcripts and press releases.
28INTUIT TO ACQUIRE CREDIT KARMA
Transaction Overview Intuit Financial Detail(1)
Revenues Adj. EBITDA
− On February 24, Intuit Inc. (NasdaqGS:INTU) $7,995 CAGR:
announced its acquisition of Credit Karma, $7,406 11%
Inc. for $7.1Bn. The transaction is scheduled $6,784
to close in the second half of 2020 $6,025
To Acquire $5,196
− By agreeing to acquire Credit Karma, a
company with nearly $1 billion in unaudited
revenue in calendar year 2019, up 20% from
$2,908
the previous year, Intuit accelerates its $2,481 $2,647 CAGR:
mission of powering prosperity around the $1,642 $1,798 15%
$7.1Bn world
Pending
CY17A CY18A CY19A CY20E CY21E
Intuit 3-Year Stock Price Performance & Acquisition History ($MM)
CY17A CY18A CY19A CY20E CY21E
$320.00 February 24, 2020 6.0mm Revenues $5,196 $6,025 $6,784 $7,406 $7,995
% Growth 10.7% 16.0% 12.6% 9.2% 8.0%
May 15, 2019 Adj. EBITDA $1,642 $1,798 $2,481 $2,647 $2,908
$270.00 5.0mm
% Margin 32% 30% 37% 36% 36%
January 22, 2018 Adj. EPS $3.78 $5.09 $6.78 $7.21 $7.86
$220.00 4.0mm
November 18, 2019
Stock Data 7/10/20 Valuation Multiples
$170.00 November 28, 2018 3.0mm Closing Price $307.55 EV / CY19A Revenue 12.7x
52 Week High $314.73 EV / CY20E Revenue 11.6x
$120.00 2.0mm 52 Week Low $187.68
November 6, 2017
EV / CY19A Adj. EBITDA 34.8x
FD Shares Outstanding 289.2 EV / CY20E Adj. EBITDA 32.6x
$70.00 1.0mm
Equity Value $88,932
Plus: Debt & Minority Interest $663 Price / CY19A EPS 45.4x
$20.00 0.0mm
Less: Cash and Equivalents ($3,371) Price / CY20E EPS 42.7x
Apr-18
Apr-19
Apr-20
Jan-18
Jan-19
Jan-20
Oct-17
Oct-18
Oct-19
Jul-17
Jul-18
Jul-19
Jul-20
Enterprise Value $86,224
Source: Capital IQ as of 7/10/20, Wall Street Research, Company websites, press releases and earnings transcripts.
(1) Projected figures per Wall Street research consensus. 29INTUIT TO ACQUIRE CREDIT KARMA (CONT’D)
Strategic Rationale Combined Platform
The platform, leveraging artificial intelligence and connections to over
Founded in 1983, Intuit is a global Founded in 2007 by Ken Lin, Credit 100 financial partners, will help consumers:
financial platform company with Karma is a consumer technology
products including TurboTax, company that provides financing Find the right financial products by matching consumers with pre-approved
QuickBooks, Mint and Turbo. Their services including identity offers on loans and credit cards with competitive interest rates that are right
ecosystem of financial management monitoring, applying for credit for them.
solutions serves approximately 50 cards, shopping for loans (car, home
million customers worldwide and personal), filing their taxes Put more money in their pockets by connecting them to higher yield savings
accounts and, in the future, will provide faster access to their hard-earned
cash.
The combination brings together two technology leaders to help solve the
personal finance problems that consumers face today -- managing debt, Provide insights and advice to help consumers make better decisions about
maximizing savings, access to better credit cards and loans -- with an aim to their money and improve their credit score.
put more money in consumers’ pockets
Credit Karma Business Model Select Transaction Commentary
“ Our mission is to power prosperity around the world with a bold
goal of doubling the household savings rate for customers on our
platform. We wake up every day trying to help consumers make
ends meet. By joining forces with Credit Karma, we can create a
Paid by the Bank personalized financial assistant that will help consumers find the
Scores & Reports Recommendations
or Lender right financial products, put more money in their pockets and
provide insights and advice, enabling them to buy the home
Get access to credit Use data to analyze Get a product through
scores and reports credit profile and one of Credit Karma’s they’ve always dreamed about, pay for education and take the
from TransUnion and make product recommendations, and vacation they’ve always wanted. ”
Equifax, with weekly recommendations the bank or lender pays
updates the company Sasan Goodarzi, CEO, Intuit
Source: Company websites and press releases.
30CANNAE HOLDINGS UNSOLICITED OFFER SUMMARY TO CORELOGIC - SUBSEQUENTLY
REJECTED BY CLGX
Summary of Offer Cannae Holdings (NYSE: CNNE) Summary
− CoreLogic (NYSE: CLGX) has received an unsolicited bid from Cannae − Holding company engaged in actively managing and operating a group of
Holdings (NYSE: CNNE) and Senator Investment Group to acquire the companies and investments as well as making additional majority and
company for $65 per share in cash representing a 37% premium over minority equity portfolio investments in businesses
CoreLogic’s unaffected stock price on June 15 − Primary investments include minority ownership interested in Dun &
− Cannae and Senator Investment jointly own about 15% of CoreLogic’s Bradstreet, Ceridian, and Coding Solutions and majority ownership stakes
shares outstanding in O’Charley’s, 99 Restaurants and various other equity and debt
− Cannae and Senator said that it’s prepared to take “all steps necessary” investments in real estate, financial services and healthcare technology
including calling a special meeting and launching a proxy fight if CoreLogic’s − Cannae is externally managed by Trasimene Capital and led by Bill Foley
board isn’t willing to engage − As of 3/31/20, the portfolio has a book value of ~$2.2Bn including
− CoreLogic’s Board of Directors said that Cannae and Senator hadn’t approximately $399MM of holding company cash and no holding company
previously expressed interest in acquiring the company but will carefully debt
review the proposal with the assistance of financial and legal advisors to
determine the best course of action
− First American had a ROFR on any CLGX takeover offers that expired on
CLGX Stock Chart
June 1st of this year $80 June 15, 2020: 12mm
− On July 7, Corelogic’s Board voted Unanimously To Reject Cannae’s Unsolicited Bid from
offering, calling the bid undervalued and raising serious regulatory $70 Cannae Holdings 10mm
concerns
$60
8mm
CoreLogic (NYSE: CLGX) Summary $50
− Provider of global property information, analytics, data-enabled software
$40 6mm
platforms and services that address the unique needs of the mortgage, real
estate, insurance, capital, public sector and rental property markets $30
4mm
− The Property Intelligence & Risk Management Solutions (“PIRM”) segment
combines property information, mortgage information and consumer $20
information to deliver unique housing market and property-level insights, 2mm
$10
predictive analytics and risk management capabilities
− The Underwriting & Workflow Solutions (“UWS”) segment combines $0 Sep-19 0mm
Nov-19
May-20
Jan-20
Jul-19
Jul-20
Mar-20
property, mortgage and consumer information to provide comprehensive
mortgage origination and monitoring solutions, including, underwriting-
related solutions, and data-enabled valuations and appraisals
Source: Capital IQ as of 7/10/20, Wall Street Research, Company Filings and Press Release.
31CANNAE HOLDINGS UNSOLICITED OFFER SUMMARY TO CORELOGIC - SUBSEQUENTLY
REJECTED BY CLGX (CONT’D)
Deal Multiples and Share Premium / (Discount)
Premium / (Discount) To: Valuation Multiples 4
1
$MM, except per share data 52 Week Range Volume-Weighted Average Price
30-Day 60-Day 90-Day LTM Equity Enterprise LTM NTM LTM Adj. NTM Adj.
Current Price Low High VWAP VWAP VWAP VWAP Value 2 Value 3 Revenue Revenue EBITDA EBITDA
Metric: $67.17 $24.69 $69.36 $58.72 $54.61 $49.14 $45.56 $1,788.4 $1,687.9 $530.1 $510.4
Pre-Offer
$52.93 (21%) 114% (24%) (10%) (3%) 8% 16% $4,322 $5,934 3.3x 3.5x 11.2x 11.6x
Bid
$65.00 (3%) 163% (6%) 11% 19% 32% 43% $5,307 $6,919 3.9x 4.1x 13.1x 13.6x
Current(5)
$67.17 0% 172% (3%) 14% 23% 37% 47% $5,484 $7,097 4.0x 4.2x 13.4x 13.9x
CLGX Financial Profile ($67.17 Share Price) CLGX Top 10 Shareholders
Common Stock
($MM) CY ’17A CY ’18A CY ’19A CY ’20E Holder % Of CSO Cannae and
Equivalent Held(6)
Senator jointly
Revenue $1,851 $1,788 $1,762 $1,708 9,871,904 12% own 15% of
CSO(7)
7,746,628 10%
Y/Y Growth (5.2%) (3.4%) (1.5%) (3.1%)
6,824,557 9%
Adj. EBITDA $480 $493 $497 $513
4,378,546 6%
Adj. EBITDA Margin 25.9% 27.6% 28.2% 30.0%
2,970,000 4%
Market Cap $5,484 EV / Rev: 4.0x 4.2x 2,503,199 3%
Cash & Equiv. $153 EV / EBITDA: 14.3x 13.8x 2,350,000 3%
2,005,861 3%
Total Debt $1,765
1,970,995 2%
Enterprise Value $7,097 1,931,184 2%
Source: Capital IQ as of 7/10/20, Wall Street Research. (4) LTM is twelve months prior to Q1’20. NTM is twelve months beginning Q2’20.
(1) VWAP calculated using number of trading days, not calendar days.
(2) Offer equity value based on FDSO that includes PBRSUs and RSUs.
(5) As of 7/10/20.
(6) Capital IQ as of 7/14/20.
32
(3) Assumes net debt of $1,612. (7) Cannae and Senator ownership % based on offer press release.PUBLIC COMPANY PERFORMANCE
LTM Share Price Performance
RDFN: 107% RMAX: (4%)
70% EXPI: 57% PURP: (52%)
RLGY: 23% 52%
50%
34%
30% 28%
21%
20%
10%
(10%) (17%)
(19%)
(30%) (25%)
(27%)
Intra-COVID March
(50%) Market Low
(70%)
Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
Residential RE Data / RE RE Media / Property Mgmt RE Sharing Commercial Traditional Credit / Mortgage
Broader Data
Brokerage Software Portals Software Economy / Travel Brokerage Mortgage / Title Marketing
Public Real Estate Technology Ecosystem
Property
Residential RE Data Broader Data RE Sharing Commercial Traditional Credit / Mortgage
RE Media / Portals Management
Brokerage / RE Software Economy / Travel Brokerage Mortgage / Title Marketing
Software
52% 34% 28% 21% 20% (17%) (19%) (25%) (27%)
LTM Share Price Performance
Source: Capital IQ as of 7/10/20.
33PUBLIC COMPANY VALUATION
Enterprise Value / 2020E Revenue Enterprise Value / 2020E EBITDA
16.8x 34.6x
30.5x 29.2x
21.3x 20.7x
7.5x 17.1x 15.5x
6.7x
11.2x
4.4x 4.0x 3.9x 8.2x
1.1x 1.1x 0.9x
Property Credit / RE Sharing Traditional RE Sharing Property Credit / Traditional
RE Media / Broader RE Data / RE Residential Commercial RE Media / RE Data / Broader Residential Commercial
Mgmt Mortgage Economy / Mortgage Economy / Mgmt Mortgage Mortgage
Portals Data Software Brokerage Brokerage Portals RE Software Data Brokerage Brokerage
Software Marketing Travel / Title Travel Software Marketing / Title
Public Real Estate Technology Ecosystem
Property
Residential RE Data Broader Data RE Sharing Commercial Traditional Credit / Mortgage
RE Media / Portals Management
Brokerage / RE Software Economy / Travel Brokerage Mortgage / Title Marketing
Software
1.1x / 17.1x 4.0x / 21.3x 7.5x / 20.7x 16.8x / 30.5x 6.7x / 29.2x 3.9x / 34.6x 0.9x / 11.2x 1.1x / 8.2x 4.4x / 15.5x
2020E Revenue / 2020E EBITDA Multiple
Source: Capital IQ as of 7/10/20.
Multiples represent median value of sector group.
eXp World Holdings and Purplebricks Group excluded from Residential Brokerage’s EV / EBITDA calculation.
34I. COVID-19 UPDATE
II. PROPTECH MARKET SUMMARY
APENDIX
35APPENDIX
Select M&A Activity
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
6/30/2020 NA NA NA NA NA Provider of CMA platform that assists real estate agents with managing deals and graphics generation
Provider of mortgage lending and real estate software solution that maximizes repeat business for lenders and
6/25/2020 NA NA NA NA NA
agents by empowering consumers to build wealth through homeownership
Provider of real estate search applications, which actively manages over $1 trillion worth of active listings data
6/24/2020 NA NA NA NA NA
from over 600 individual Multiple Listings Services (MLS)
Provider of a residential real estate search site and end-to-end platform for consumers and agents to
6/24/2020 NA NA NA NA NA
collaborate
6/11/2020 NA NA NA NA NA Provider of a cloud-based platform for institutional real estate investors and global property managers
6/11/2020 NA NA NA NA NA Provider of a technology platform designed to build highly personalized, premium prefab homes
6/4/2020 NA NA NA NA NA Provider of professional appraisal management services
Provider of tools to access data across the entire enterprise that optimize space use, meeting room
5/13/2020 NA NA NA NA NA
coordination, workplace moves, and asset management
5/13/2020 $190 3.3x NA NA NA Provider of a platform for digital commercial real estate transactions that accelerates the property sales process
Provider of a web-based real estate financial modeling, analysis, and presentation application that includes a
4/2/2020 NA NA NA NA NA
suite of smart, flexible models, calculators, and tools for the single-family real estate sector
2020
3/31/2020 NA NA NA NA NA Provider of software solutions for the UK social housing sector
3/9/2020 NA NA NA NA NA Provider of a visual marketing platform designed to offer videos and 3D models
Provider of automated valuation models and other property valuation tools for appraisers, appraisal
3/3/2020 NA NA NA NA NA
management companies, lenders, investors and government agencies
Developer of financial education and recommendation platform intended to offer free credit scores and
2/25/2020 7,100 7.1x NA NA NA
reports with monitoring
2/19/2020 NA NA NA NA NA Provider of online commercial real estate marketplace that connects tenants and buyers with brokers
2/13/2020 350 NA NA NA NA Provider of document, eSign, eClosing and compliance technology
2/11/2020 588 2.6x NA 12.5x NA Operator of a series of websites for marketing apartments, including Rent.com and ApartmentGuide.com
1/22/2020 NA NA NA NA NA Provider of multifamily real estate resident engagement solution
Provider of geographic data sciences and predictive, location-based analytics for businesses across the U.S. and
1/22/2020 NA NA NA NA NA
Canada
1/14/2020 NA NA NA NA NA Provider of client relationship management (CRM) software company for CRE brokers
Source: Capital IQ as of 6/30/20, Pitchbook, Company filings.
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