Could you share your journey as an entrepreneur and how that led to the establishment of IMMO?

My entrepreneurial path has been relatively limited thus far, comprising the founding of two ventures. However, pivotal experiences that eventually steered me towards establishing IMMO trace back to my tenure as an investor at the US hedge fund, Davidson Kempner, along with my personal forays into real estate investments. What struck me profoundly was the significant portion of existing housing inventory that remained inaccessible as a professional investment product. This discrepancy was especially confounding, considering the escalating trend towards renting over the past few decades. Conventional wisdom in real estate investing often asserted the impossibility of acquiring small residential assets at scale. This notion seemed perplexing to me, particularly when tech-driven investors in the US had already demonstrated its feasibility. Astonishingly, this approach hadn’t been explored in Europe. This market gap, coupled with the pervasive inefficiencies in the rental experience, became the impetus behind IMMO. These foundational insights continue to steer our mission.

Could you elaborate on IMMO’s integration of AI and machine learning technologies and their anticipated impact on the real estate industry?

Our utilization of AI and machine learning unfolds in two main spheres.

Artificial Intelligence: In real estate investment, the initial stages often entail poring through extensive documents to gather essential data points for asset evaluation. This manual process is arduous and time-consuming. AI language models empower us to swiftly extract pertinent data from hundreds of documents, enabling investment experts to expedite asset comprehension and allocate more time to value-creating activities. At IMMO, AI functions as an augmentation to human capabilities, not as a replacement.

Machine Learning: Underwriting properties involves identifying suitable ‘comparable transactions’ to accurately value an asset, a traditionally time-intensive process. Machine learning empowers us to train algorithms to process larger volumes of such comparables, suggesting the right properties instantly. This transformative efficiency significantly streamlines the process.

Overall, we envisage AI and ML as tools that catalyze industry acceleration and efficiency.

Could you describe IMMO’s funding journey and how it has propelled the company’s growth?

Securing funding was a critical milestone for IMMO. We sought growth investors well-versed in real estate capital flows and acquainted with the challenges of introducing new asset classes to institutional investors. Oak HC/FT, a US-based entity, led our Series B, followed by Fintech Collective and Talis Capital, leading our Series A. These shareholders closely observed the emergence of Single-Family Rentals as an institutional asset class in the US over the past decade and partnered with IMMO to bring this residential investment revolution to the UK and European markets.

The capital raised facilitated significant investment in our end-to-end technology platform, positioning IMMO uniquely within real estate investment management. Post our Series B, we assembled a stellar team, including Hima Mandali (Chief Technology Officer, ex-Solaris Bank), Chris Chinaloy (Chief Growth Officer, ex-Round Hill Capital), and Arik Benzino (Chief Commercial Officer, former COO of WeWork for North America and Israel), among other key talents. Additionally, we established a technology hub in Chennai, India, fortifying our global footprint.

What guidance would you offer to aspiring entrepreneurs venturing into the real estate or PropTech industry?

For newcomers eyeing the real estate or PropTech sector, understanding the prevailing dynamics is crucial. In this realm, tradition often trumps innovation, with practices deeply entrenched in longstanding methods rather than forward-thinking strategies. Disruptive founders aiming to revolutionize the market must grasp the essence of meeting customers at their existing standpoint. Adapting solutions to match customer expectations becomes pivotal for success in the realm of proptech.

Envisioning the trajectory of IMMO over the next 5 to 10 years, what are your long-term goals? How do you anticipate the company’s evolution and its impact on the real estate domain?

Our long-term vision for IMMO revolves around transforming residential real estate into a readily accessible, liquid investment product. The IMMO platform aims to democratize investment opportunities, catering to institutions and retail investors alike. Imagine purchasing ‘housing in Manchester’ or similar assets akin to acquiring stocks in today’s stock market. Investors gain access to their desired macro investment exposure tailored to specific asset classes and geographies. Presently, real estate investment involves intricate operational project management, but our goal is to streamline this process significantly.