PropTech Market Update Q1 2021 Review - GCA Advisors
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PropTech Market Update
Q1 2021 Review
EXECUTIVE SUMMARY – Q1 2021 MARKET UPDATE
» Q1 2021 was the most active quarter in the PropTech market since GCA began tracking the space in 2017
» $4.5Bn in equity and debt growth investment into the U.S. PropTech market in Q1 2021 represents over 60% of the
total capital invested into the PropTech space in all of 2020 and represents the largest amount of funding into the space
since GCA started tracking market data in 2017
» 21 financing rounds north of $50MM and 13 financing rounds over $100MM into leaders such as Notarize, Side, Blend,
iLobby, SimpleNexus and multiple others
» Record breaking M&A activity with over 40 PropTech M&A transactions announced in the quarter, which represents ~40% of
the total number of PropTech M&A transactions announced in all of 2020
Significant Strategic & Private Equity M&A Transactions(1)
/ / /
$500MM $7,704MM $500MM
/ / /
Undisclosed $608MM Undisclosed
» Public market momentum and valuations remains very healthy: Multiple high profile SPAC and IPO transactions announced in
the quarter
» Latch, Matterport, Doma and Hippo announced SPAC mergers and Compass went public on 4/1
SPAC Mergers and IPOs
Announced on 1/25 Announced on 2/8 Announced on 3/2 Announced on 3/4 IPO on 4/1
» GCA expects continued strong PropTech market activity in 2021 given the momentum and tailwinds in the sector
Notes:
(1) Deal values represent Enterprise Values. 2
LEADING ADVISORY TEAM FOCUSED ON THE PROPTECH MARKET
GCA U.S. PropTech Team Leader in PropTech Advisory – 30+ Global PropTech Deals Announced since 2017
Q1’21 Deals
Chris Gough
Managing Director
Head of Real Estate Technology
Acquired by A Portfolio Company of
Phone: (415) 318-3658 Majority investment from Acquired by Acquired by
cgough@gcaglobal.com
Majority investment from
Rip Furniss We advised the seller We advised the seller We advised the seller
Pending
We advised the seller We advised the seller
Vice President
Phone: (212) 537-4535
rfurniss@gcaglobal.com
Investment from Investment from Acquired Majority interest Acquired by
acquired by
GCA European PropTech Team A Portfolio Company of
Adrian Reed We advised the seller We advised Mobysoft We advised the buyer We advised the seller We advised the seller
Managing Director
Phone: +44 (161) 240-6422
adrian.reed@gcaaltium.com
Acquired by Acquired by Acquired by Majority interest
Acquired by
acquired by
Dominic Orsini, Director
dominic.orsini@gcaaltium.com A Portfolio Company of
Key Sub-Sector Coverage Verticals We advised the seller We advised the seller We advised the seller We advised the seller We advised the seller
Residential RE Software Commercial RE Software
Mortgage / Lending Title / Insurance
Acquired by Acquired by Acquired by Acquired by Acquired by
Home Services Facilities Management
Construction Tech IWMS We advised the seller We advised the seller
We advised the seller We advised the seller We advised the seller
3
GCA ADVISES SHOWINGTIME ON ITS SALE TO ZILLOW GROUP
Transaction Overview ShowingTime Product Suite
GCA acted as exclusive financial advisor to » Real estate agents, teams, offices
ShowingTime on its sale to Zillow Group and MLSs can manage all aspects of
the showing appointment scheduling
» On February 10th, ShowingTime Showings process with ShowingTime’s showing
announced it entered into a definitive platform. Offerings include live
agreement to be acquired by Zillow for appointment specialists, the
$500MM industry’s leading showing software,
sale to
» ShowingTime is the real estate industry’s online scheduling, and a mobile app
leading showing management and market for agents and their clients
stats technology provider
for a total consideration of
» The acquisition will accelerate adoption of
$500,000,000 ShowingTime’s technology as home
shoppers and sellers, agents and industry
» MLSs, associations, and their member
Advised ShowingTime partners move toward a more efficient,
digital future MarketStats offices and agents can benefit from
*Pending ShowingTime’s in-depth analytics to
» The transaction is subject to customary better understand their local real
closing conditions, including HSR estate markets and help guide sales
and marketing decisions
Company Highlights
950K+ ~370 50MM+
Agents MLS Customers Showings Facilitated in 2020 » Offer Manager brings a boost of
efficiency and improved
“ We have been impressed with ShowingTime’s ability to simplify a Offers
communication to a critical part of
the real estate process. This
cumbersome but critical part of the home shopping experience by
increases industry professionalism
integrating with MLSs, agents, brokers and online portals and giving and helps agents better serve their
buyers’ agents an easier way to schedule showings with listing agents… clients, regardless of their
we expect to grow ShowingTime’s engagement through all channels to communication style or transaction
ensure touring is easier for the industry and consumers. ” management platform
Errol Samuelson
Chief Industry Development Officer,
Zillow Group
Source: Company websites and press releases.
4
GCA ADVISES TURNKEY ON ITS SALE TO VACASA
Transaction Overview Transaction Commentary
GCA acted as exclusive financial advisor to
TurnKey on its sale to Vacasa “ employees,
This is an incredibly exciting day as we plan to welcome TurnKey
homeowners and guests into the Vacasa family upon closing
of the transaction. Our companies have a similar focus on delivering
» On March 11th, TurnKey announced it exceptional service to our homeowners and guests, and we are excited to
entered into a definitive agreement to be
do that together at a key juncture for the highly competitive vacation
acquired by Vacasa
» TurnKey is a full-service vacation rental
rental industry.”
Matt Roberts
property management company for
CEO, Vacasa
premier vacation rental homes in top U.S.
travel destination
» The acquisition is expected to close in a
month, subject to customary closing
conditions
“ toInnovation has been at the core of our business from the start. Our goal is
make vacation rental homeownership more efficient and more
Advisor to Turnkey profitable for owners through the use of technology. Moving forward
together, we expect to deliver on our shared vision of developing
innovative solutions to meet the evolving needs of our homeowners, and
Company Highlights ”
offer a consistent, reliable hospitality experience to our guests.
6,000+ 400+ 40K+ John Banczak
Co-Founder & CEO, TurnKey
Homes under Management Employees 5-Star Guest Reviews
At the Crossroads of Industry Trends
Technology Powering the Home Preference for Home Rentals
Managed Marketplace Rental Market vs. Hotels
» TurnKey manages both sides of the » TurnKey’s technologies improve travel » Home rentals have become the preferred
marketplace, ensuring a premier experiences for both renters and travel accommodations as guests can
experience for both homeowners and homeowners, while optimizing the have a full, freshly-cleaned house all to
guests. This has led to repeat bookings, management, marketing, and return on themselves and more meaningfully
positive reviews, and more revenue for investment for vacation rental engage with their travel destinations
owners homeowners
Source: Company website.
5
GCA ADVISES UNIVERSALCIS ON ITS MAJORITY INVESTMENT FROM LMP
Transaction Overview UniversalCIS Product Suite
GCA acted as exclusive financial advisor to » Combined document comprised of three credit reports
UniversalCIS on its majority investment Tri-Merge from Transunion, Equifax and Experian – first step of
mortgage origination process
from Lovell Minnick Partners “LMP”
» On March 17th, UniversalCIS announced it » Verifying employment which confirms the income
VoE / VoI
earned by an employed individual
received a majority investment from Lovell
Minnick Partners for an undisclosed amount
Tax Return » Tax transcripts received directly from the IRS confirming
majority investment from » UniversalCIS is a market-leading, technology- Verification tax payment and amount
enabled provider of credit data and related
origination solutions in the mortgage industry » Ensure that the property meets all required FEMA flood
Flood
map and community participation requirements
» Former Speaker of the House Paul Ryan and
Former U.S. Secretary of the Navy John Dalton Liens & » Database search for relevant liens and judgements on
will continue to serve UniversalCIS, joining the Judgments properties based on Social Security Number
Company’s board of directors. Steve Ozonian,
Undisclosed Debt » Monitor to ensure there is no additional or undisclosed
Advised UniversalCIS an advisor to Lovell Minnick and industry
Monitoring debt taken on during the application process
veteran, will also join the board
» Proprietary software platform that enables lending
Company Highlights Appraisal
institutions, AMCs, and independent appraisers to build
Firewall
and manage a network of independent appraisers
4,000+ ~60 History of Strategic Acquisitions
Customers LOS Integrations
In 2019, CIS acquired Alliance2020’s mortgage services division
“ The UniversalCIS team has built an incredible company that plays a critical
role in the mortgage origination process and provides best-in-class
technology and customer service in CIS acquired Avantus in 2019, a leading technology innovator in the
a seamless, centralized manner. ” Jason Barg
Partner, Lovell Minnick Partners
market
In 2020, CIS acquired Universal bringing new products and end markets
“ We’re excited to embark on the next chapter of UniversalCIS’ success as we via its employment verification offering. Following this transaction, the
combined entity rebranded to UniversalCIS.
collaborate with Lovell Minnick to continue to broaden and enhance our
technology offerings for new clients UniversalCIS acquired SharperLending in 2020 to extend UniversalCIS’
and markets. ” Perry Steiner
Chairman, UniversalCIS
presence across all the mortgage origination process while accelerating
UniversalCIS’ evolution as a technology and software provider
Source: Company websites and press releases.
6
I. PROPTECH MARKET SUMMARY
II. PUBLIC MARKETS
III. M&A AND MARKET COMPS BACK-UP
7RESIDENTIAL RE MARKET REMAINS HIGHLY ACTIVE DESPITE HISTORICALLY LOW INVENTORY
1 CONSTRICTED SUPPLY AS INVENTORY NEAR RECORD LOWS(1)
2 MORTGAGE RATES UP IN Q1 2021, BUT REMAIN LOW
RELATIVE TO HISTORICAL AVERAGES(3)
2.5
Housing Inventory (MM) 30-Year Fixed Rate Mortgage Average
5.0%
2.0
4.5%
1.5 4.0%
3.5%
1.0 3.2%
3.0%
0.5 2.5%
Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
3 TRANSACTIONS REBOUNDED SIGNIFICANTLY IN 2H 2021 AND
INTO 2020(1)(2)
4 INVENTORY CONTRAINTS AND LOW MORTGAGE RATES
DRIVING UP PRICES(4)
U.S. pending home sales remain strong $370,000
7.2 60% Median Sales Price
6.8
$350,000
6.4 40% $346,800
6.0
$330,000
5.6
20%
5.2 $310,000
4.8
4.4 0%
$290,000
4.0
3.6 (20%) $270,000
Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
Seasonally Adj. Ann. Rate of Existing Home Sales (MM)
Mortgage Applications (Week-Over-Week Growth)
Source:
(1) National Association of Realtors.
(2) Mortgage Bankers Association of America, includes refinancings.
(3) Freddie Mac.
(4) U.S. Department of Housing and Urban Development.
8CRE MARKET DRIVERS & TAILWINDS IN TENANT EXPERIENCE/OPERATIONAL EFFICIENCY
1 8 MONTH DECLINE IN CMBS DELINQUENCY RATES SIGNALING
IMPROVEMENT IN END-MARKETS & RECOVERY MOMENTUM(1)
2 CBRE NEW LEASING VOLUME INDEX
(Jan 2020 = 100)(3)
CMBS DELINQUENCY RATES
25% 100
90
20% 80
70
Lodging: 16%
15% 60
Retail: 12% 50
10% 40
Overall Delinquency: 7% 30
5% 20
Multifamily: 2%
Office: 2% 10
0% Industrial: 1%
0
Feb-20
Feb-21
Sep-20
Oct-20
Apr-20
May-20
Aug-20
Nov-20
Jan-21
Mar-20
Dec-20
Jun-20
Jul-20
Oct-20
Jun-20
Sep-20
Jan-20
Feb-20
Jan-21
Feb-21
Apr-20
Aug-20
May-20
Nov-20
Mar-20
Dec-20
Jul-20
3 COMPOUND 3-YEAR TOTAL RETURN IN US REIT PROPERTY
INDICES AS OF APRIL 2021(2) » CRE market remains mixed depending on end-market, but
expansion of vaccinations across U.S. is generating some
(1%) Lodging/Resorts
optimism for a rebound in CRE activity – 8 consecutive months of
Retail 2% declining CMBS delinquency rates across multiple CRE categories
Office 2% » Lodging / travel expected to see strong demand as economy re-
opens – travel tech / vacation rental sector expected to
Diversified 4% experience significant market tailwinds
Apartments 10%
» CRE office and “return to work” timing remains mixed depending
Health Care 13% on geo and end-market – overall CRE vacancy rates have
increased nationally, with significant increases in sub-lease space
Data Centers 18% available(4) – that said, recent KPMG CEO survey indicates that
Industrial 23% CEO’s are less likely to downsize physical office footprint relative
(5%) 0% 5% 10% 15% 20% 25%
to 6 months ago(5)
Source:
(1) Trepp CMBS Delinquency Rate (30+ Days).
(2) Nareit, "FTSE Nareit U.S. Real Estate Index Series Daily Returns" as of 4/1/2021.
(4) Cushman & Wakefield, U.S. Office Marketbeat Report (1/14/21).
(5) 2021 KPMG CEO Outlook Pulse Survey (3/23/21).
9
(3) CBRE Research.PROPTECH PRIVATE CAPITAL DEAL DASHBOARD – Q1 2021
Financing Activity Select Q1 2021 Financing Transactions
($MM) ($MM)
Equity Raise Value Debt Raise Value Number of Deals
Latest
Select Amt. Equity Equity Funding to Reported
Date Company Investor(s) Invested Date Valuation
$4,549
$4,800
$4,650
$4,500
3/26 $500 $900 $8,300
$4,350
98
$3,933
$4,200
3/25 $130 $213 $760
$4,050
96
$3,900
$1,297
$3,750
90 $75 equity /
3/24 $92 $1,000
$1,000 debt
$3,600
$1,085
$3,450
$3,300
Various Investors on Tase
$3,150 3/23 Up $100 ~$200 NA
74
$3,000
$2,850
75
$2,700 2/23 $150 $215 $1,000
$2,550
$2,400
65 $2,214 $2,193 68
2/23 $270 $397 $1,350
$2,250
$2,008
$2,100
$1,950
$1,884 $291 $397
$250 2/4 $88 $140 NA
$1,800
58
$1,650
$403 $3,252
$1,500
$1,350
$2,848 2/3 $52 $63 NA
$1,200
$1,050
$1,923 $1,795 $728 $815 2/2 $110 $170 NA
$900
$1,758
$750
$600
$1,481
1/26 $95 $119 NA
$815
$450
$300 $718
$150
$0
1/13 $300 $685 $3,300
Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21
1/7 $57 $92 $300
Avg. Deal 1/5 $100 $100 NA
Value:
$22.8 $21.4 $23.9 $10.6 $38.5 $14.0 $18.3 $33.2
1/5 $108 $128 NA
Source: Capital IQ, Pitchbook, press releases. Data as of 3/31/2021. Excludes Oyo Rooms and The We Company financing rounds. Represents data across CRE / Investment, Residential Real Estate and
Mortgage Technology. 10PROPTECH PRIVATE COMPANY FUNDING LEADERS
Other Mega Funding Leaders
Equity Raised to Date: Q1’21 Movers
>$500MM
($614MM) ($468MM) ($3.1Bn)
IPO / SPAC Announcement
2020 2021 YTD
$200MM - $500MM
Q1 2021 Acquired(1)
$100MM - $200MM
52 companies
raised $100MM+
$50MM - $100MM
161 companies
raised $25MM+
$25MM - $50MM
Source: PitchBook, CB Insights, company filings, company websites, press releases. Funding totals exclude secondary transactions. Equity raised to date as of 3/31/2021.
(1) Based on transaction announced date. 11CONSTRUCTION LENDING SOFTWARE PLATFORM BUILT RAISES $88MM IN SER IES C
ROUND
Transaction Overview Built Overview
Headquarters: Nashville, TN
− On February 4, Built announced the closing Founded: 2014
of a $88MM Series C round led by Addition,
Description: Developer of a construction lending software platform designed
Lee Fixel’s fund
to mitigate risk and simplify construction loan management. The
− The funding will be used to expand the company's platform offers visibility into construction portfolios,
Series C Company’s Built for Lending product suite to simplifies the loan administration process and accelerates the
Led by movement of money into projects. This enables users to reduce
accelerate its go-to-market efforts to serve
construction loan risk, increasing loan profitability.
more lenders and to invest in its Built for
Construction division to better serve Current Investors:
commercial owners, developers,
homebuilders and other construction
$88MM Raised companies
− This round brings total equity raised to
$140MM
Built Fundraising Timeline Key 2020 Metrics
Series: A B C
128k 171k
$140
$14 0.0
Active Loans Inspections Performed
(78% YoY Increase) (37% YoY Increase)
$12 0.0
$10 0.0
$88 $67Tn 496k
$80 .0
Total Commitment Transactions Touched
$60 .0 $52 Dollars
$40 .0
$31
$21
$52
$20 .0
$21
339k $28Bn
Draw Disbursements Total Draw Amounts
$0. 0
Nov-17 Mar-19 Feb-21
Previously Raised Equity Raised
Source: CB Insights, Pitchbook, Company website, press releases.
12CONSTRUCTION LENDING SOFTWARE PLATFORM BUILT RAISES $88MM IN SER IES C
ROUND (CONT’D)
Business Model Built Platform Overview
Compliance Portfolio
Insights
Title Company
LOS Lender Collaboration Draw
Portal Management
Borrower
CORE Core
Connectivity
Contractor Collateral
Management
Inspector
Client Portfolio Snapshot Select Deal Commentary
Committed Loan Count(1): $32Bn “money
The construction industry is reliant on capital to thrive, yet
In Total Assets of movement and spending decisions are antiquated from
Average Bank Client start to finish. Modern construction finance requires new
infrastructure altogether. The Built team is working hard to
56% streamline construction lending and construction spending for all
Builder Finance Of Top 25 construction stakeholders. We’re very excited for the road ahead
Consumer 29% Construction Lenders
40% and to have continued support of world-class investors, but more
importantly we’re excited to work with our clients and partners
$50+Bn
Loan Volume
”
to accelerate changing the way the world gets built.
Commercial Managed on Built
31% Chase Gilbert, Co-Founder and
CEO, Built
115+
Clients To-Date
Source: Company website, press releases.
(1) By loan volume. 13SECURITY DEPOSIT ALTERNATIVE PROVIDER LEASELOCK RAISES $52M IN SERIES B
ROUND
Transaction Overview LeaseLock Overview
Headquarters: Marina del Ray, CA
− On February 3, LeaseLock announced a Founded: 2014
$52MM Series B round led by Westerly
Description: LeaseLock provides online rent payment insurance services. The
Winds and Wildcat Venture Partners
company's platform collects individual data and helps customers
− Proceeds will be used to expand LeaseLock’s secure a rental lease in exchange for a one-time rent payment. It
Series B lease insurance product into the first AI- also acts as a guarantor and pays rent on time to landlords. This
Led by enables renters as well as property owners to transact in a faster,
powered financial technology platform for
simpler and more cost-effective way.
enterprise real estate
Current Investors:
− LeaseLock has insured $1Bn in leases to date
and the number of homes on the platform
$52MM Raised grew 5x to 1.5MM in 2020
Equity Fundraising Timeline Key Customers
Series: Seed A B
$70 .0
$63
$60 .0
$50 .0
$40 .0
$52
$30 .0
$20 .0
$11
$10 .0
$1 $10 $11
$0. 0
Dec-16 Apr-18 Feb-21
LeaseLock clients measure 6-figure NOI lift per asset, resulting in millions in
Previously Raised New Funding
portfolio asset value increase
Source: CB Insights, Pitchbook, Company website, press releases.
14SECURITY DEPOSIT ALTERNATIVE PROVIDER LEASELOCK RAISES $52M IN SERIES B
ROUND (CONT’D)
Solution Overview Select Deal Commentary
Drive more traffic & leads by marketing
“ We’re a technology company at heart, fueled by data and
powered by insurance. We deploy our product directly
a community with a Zero Deposit
through enterprise property software systems which drives a
move-in
material data and product delivery advantage. We’re
doubling-down on our core deposit replacement product,
while investing in new insurance lines, payment and
receivables technology and market channels. ”
A small monthly fee replaces the
upfront security deposit in your online Derek Merrill, Co-Founder, CEO,
leasing checkout LeaseLock
“ Security deposits are an inefficient financial instrument
for all sides. Through technology, LeaseLock has
intelligently solved this problem while setting the
LeaseLock automatically generates a
$5,000 insurance certificate in the foundation for an end-to-end enterprise insurtech
system replacing the deposit platform. We are excited to back the business as it
”
continues to realize its vision.
Karim Abdel-Ghaffar, Founding
Partner, Westerly Winds
Close out the final account statement
with claims automated in your native
receivables process
Source: Company website, press releases.
15HOMEOWNERSHIP PLATFORM DIVVY HOMES RAISES $110MM IN SERIES C ROU ND
Transaction Overview Divvy Overview
Headquarters: San Francisco, CA
− On February 2, Divvy Homes announced a Founded: 2017
$110MM Series C round led by Tiger Global
Description: Divvy provides a homeownership platform intended to allow
Management, with participation by GGV
renters to build equity credits as they rent by selecting any home
Capital, Moore Capital, Jaws Ventures, a16z, on the market and buying it for the renter. The renter makes
Series C Emerson Collective and Caffeinated Capital down payments and gets a jump start on owning a house,
Led by enabling customers to close the housing affordability gap by
− Proceeds from the raise will be used to
providing trusted, transparent and simple homeownership
expand to more markets and launch ancillary
products for families.
product offerings to help buyers throughout
the home-buying journey Current Investors:
$110MM Raised − This round brings total equity capital raised
to $170MM
Current Geographic Presence Equity Fundraising Timeline(1)
($MM) Seed Series A Series B Series C
Date 1/25/18 10/9/18 9/25/19 2/2/21
Equity Raised $7.0 $10.0 $43.0 $110.0
Minneapolis Total Raised to Date $7.0 $17.0 $60.0 $170.0
Cleveland
Denver Cincinnati Business Model
St. Louis
Memphis
Phoenix Atlanta Customer rents home for Customer saves enough
Dallas Customer finds “forever
Jacksonville up to 3 years for down payment
home”
Houston Orlando
Contributes ~25% of Applies for traditional
San Antonio Tampa Ft. Lauderdale Contributes 1-2% of
monthly payment to down home mortgage
home value
Miami payment
New capital will be used to expand to new states, with the goal of serving Becomes sole
homeowner
70+MM Americans in 20+ markets by year’s end Divvy purchases home Divvy owns home
Source: CB Insights, Pitchbook, Company website, press releases.
(1) Total equity and debt raised is over $500MM. 16SECURITY DEPOSIT ALTERNATIVE PROVIDER RHINO RAISES $95MM
Transaction Overview Rhino Overview
Headquarters: New York, NY
− On January 26, announced its recent $95 Founded: 2017
million funding round led by Tiger Global
Description: Insurance company operator intended to offer low-cost insurance
Management
that satisfies users' security deposit requirements. The company's
− The funding comes as Rhino plans to scale its platform replaces upfront deposits with a low monthly fee,
Equity Funding Round expansion, targeting $500+MM in direct creating more access for renters and fewer vacancies for
Led by landlords. This helps renters build credibility for the future and
savings for renters and doubling its
enables clients to make house rental reasonable.
headcount to 200+ employees
Current Investors:
− Proceeds will be used to form partnerships
with property owners, advocate for renter-
$95MM Raised friendly legislation and bring new products to
market
− This round brings total equity raised
~$119MM
Rhino Fundraising Timeline Select Deal Commentary
Series: Seed Seed A B
“opportunity
Putting renters first in our business has given us the
to become renter advocates at a national level. We
$14 0.0
advocate for renter-friendly legislation like Renter's Choice
$119
$12 0.0
because nearly half of Americans are unable to afford a $400
$10 0.0
emergency expense and that makes housing affordability one of
the most pressing issues in America right now. With $45 billion
$80 .0
sitting locked away in escrow accounts, unusable for both renters
$95
$60 .0 and property owners alike, we need common-sense legislation
that can put that money back into the pockets of people who
”
$40 .0
$24 need it the most–renters.
$20 .0
$2 $3 $21 $24
$0. 0 $1
$3 $2
May-17 Feb-18 Jun-19 Sep-20 Paraag Sarva, CEO, Rhino
Previously Raised Equity Raised
Source: CB Insights, Pitchbook, Company website, press releases.
17DIGITAL LENDING PLATFORM BLEND RAISES $300MM IN SERIES G ROUND
Transaction Overview Blend Overview
Headquarters: San Francisco, CA
− On January 13, Blend announced a $300MM Founded: 2017
Series G round led by Coatue and Tiger
Description: Developer of a digital lending platform intended to simplify and
Global Management, nearly doubling its
accelerate consumer finance processes. The company assists its
valuation to $3.3B in just five months customers in attaining mortgages, consumer loans, and deposit
Series G − Proceeds from the raise will be used to fuel accounts with its digital lending platform that connects financial
Led by institutions and consumers using a standardized data format
Blend's next phase of growth and support
investment in the products and services that Current Investors:
matter most to financial institutions as the
company aims to power the future of
consumer banking
$300MM Raised
− This round brings total equity raised to over
~$685MM
Select Deal Commentary Blend Fundraising Timeline
“home
2020 was a big year of change for the banking industry. Stay at
orders and social distancing mandates accelerated digital
Series: A B B1 C D D1 E F G
$685
adoption faster than anyone could have expected. Blend has
been at the forefront of this revolution, helping banks rapidly
meet the changing needs of their customers.
” $300
Kris Fredrickson, Managing $385
Partner, Coatue $310 $75
$180 $130
“board,
Today's consumers expect Amazon-like experiences across the
and Blend is well-positioned to help financial institutions
$165
$15 $310
$385
$65 $100
$27 $165 $180
achieve that.
” John Curtius, Partner, Tiger
$6 $17 $38
$27
$65
Global Management Jun-12 Oct-14 Jul-15 Dec-15 Aug-17 Jul-18 Jun-19 Aug-20 Jan-21
Previously Raised New Funding
Source: CB Insights, Pitchbook, Company website, press releases.
18DIGITAL LENDING PLATFORM BLEND RAISES $300MM IN SERIES G ROUND ( CONT’D)
Mortgage Suite Product Overview
In-house applications – guided borrower flows and LO tools
assist in delivering loans $1.4Tn 285+
loans facilitated by lenders partnering
Blend in 2020 – more with Blend to power
than double what was their mortgage
facilitated in 2019 experience
Technology-driven resources – data-driven workflows
automate tasks for conditioning, fulfillment, and closing
~30%
of all mortgage volume
in the U.S. is
Streamline processes – connect borrowers, loan teams,
represented by Blend’s
settlement agents, and real estate agents on one platform
customer base
Consumer Banking Suite Product Overview Selected Customers
Enable financial institutions to process more than $4Bn in loans per day
Streamline applications – combined applications simplify the
collection and verification of customer information
Customer relationships – reduced manual data entry
Channel coverage – self-serve mobile, banker-assisted online,
in-person at the branch, or a combination of channels
Source: CB Insights, Pitchbook, Company website, press releases.
19VISITOR REGISTRATION AND MANAGEMENT PLATFORM ILOBBY RAISES $100MM IN
SERIES A ROUND
Transaction Overview iLobby Overview
Headquarters: Toronto, Ontario
− On January 5, iLobby announced a $100 Founded: 2014
million strategic investment from Insight
Description: Developer and manufacturer of tablet-based visitor registration
Partners
and management platform designed for streamlining the
− Proceeds from the raise will be used to help management of visitors. The company's SaaS-based platform
Series A scale its go-to-market strategy and expand its optimizes the front desk by conducting the management of
Led by visitors and contractors with a self-serve checkpoint, enabling
visitor management offerings
governments, banks, airports and retailers to improve operational
− The new investment is the first private raise efficiency and enhance branding
for the Toronto-based company, which has Current Investors:
been growing 100 percent year to year for
$100MM Raised the last several years and is profitable
Select Deal Commentary Solution Overview
“weThisbuild
investment will substantially accelerate the pace at which
and deploy the iLobby product suite to power the future
Trusted by major banks, international airports, government & Fortune
500 companies to track, manage and monitor who is in their buildings
of safety and visitor management in the workplace. As
businesses are starting to reopen, there is an increasing need to
not only know who is entering your facilities, but also assess 45+ 35+ 25+
whether they are a potential risk to your workforce. ” countries languages industries
Ariel Mashiyev, CEO, iLobby ID Card Scanning – ensure accurate identification with Photo ID
Card scanning
“ iLobby can be part of the return to work solution.” Watchlists & Deny Lists – identify and flag or deny unauthorized
guests with internal and 3rd party watchlist databases
Ryan Hinkle, Managing Director,
Insight Partners Emergency Evacuation – During emergencies, people are alerted,
and provided with a list of who’s on site to assist with headcount
Source: CB Insights, Pitchbook, Company website, press releases.
20STRATEGIC BUYERS DRIVE HIGHLY ACTIVE QUARTER FOR PROPTECH M&A
Q1 2021 U.S. PropTech M&A Activity Select U.S. Q1 2021 PropTech M&A Transactions
($MM)
• Q1 2021 M&A activity
− 84% strategic acquirers Enterprise
Buyer Target Announced Date Value
− 16% financial acquirers
3/17 NA
45
43
3/15 $500
40
3/11 NA
35
32 3/9 NA
30
2/24 NA
30
27
25
2/19 $608
25
23 23
22
2/16 NA
20
2/16 $1,000
15
2/10 $500
10
2/4 $7,704
5
1/14 $100
Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21
1/4 NA
GCA Advisory Transactions
Source: PitchBook, 451 Research, press releases.
21VTS ACQUIRES RISE
Transaction Overview Product Offerings
− On March 9, VTS announced it has entered
into an agreement to acquire Rise Buildings • VTS Data: Real-time market • Access Enablement: Solutions
− Rise Buildings operates a platform to control data and competitive insights for visitor management and
operations and tenant experience in • VTS Market: Online marketing Access Control
Acquires properties & virtual tours for a digital • Property Operations: Improved
world efficiency of property and
− The acquisition will expand VTS’s offerings for
• VTS Lease: Online deal optimized staff workflow
landlords by providing them with new
execution & tenant • Community Engagement:
capabilities to operate as efficiently as
management Solutions to create tenant
possible
Undisclosed community within properties
These solutions can be used by • Advanced Solutions: Insights
landlords, agency brokers and into a property’s performance
tenant reps to enable operational efficiency
Select Transaction Commentary
“already
By acquiring Rise, we’ll be expanding the value our customers
receive from our platform with new capabilities that will
“platform
Joining forces and integrating the Rise offering with VTS’
will give us the ability to accelerate the delivery of the
be more critical than ever as landlords focus on renewing best-in-class technology offerings landlords need now more
existing tenants, understanding occupancy trends, and reducing than ever to emerge from COVID-19 unscathed. This
vacancies in the coming months. By integrating Rise with the combination positions us for future growth and ensures tenants
VTS platform, we’ll be taking the next step in our journey to have the information and capabilities to return to work safely.
deliver a full-service platform that digitizes the entire asset And our existing customers will benefit from expanded support
experience — for both landlords and their tenant customers. ” and R&D investment to deliver even more capabilities. ”
Prasan Kale, CEO & Co-Founder, Rise
Nick Romito, CEO & Co-Founder, VTS
Buildings
Source: Company websites and press releases.
22BUILDERTREND ACQUIRES COCONSTRUCT
Transaction Overview Combined Business
− On February 24, Buildertrend announced that 23K Flexible Project Management
it had acquired CoConstruct, a provider of
construction project management software Clients Served
for the residential construction industry Bookkeeping
Acquired − Funding for the acquisition is provided by a
growth investment in Buildertrend by Bain 1.1MM+
Capital Tech Opportunities and HGGC, with Supplies Procurement
Users served
existing CoConstruct investor Serent Capital is
reinvesting in the combined company
Undisclosed Customer Engagement
− This transaction makes Buildertrend the
largest construction management software
$200Bn+
platform 2020 Construction
Payments Services
Project Value Facilitated
Select Transaction Commentary
“inOur industry is one of the fastest growing in the U.S., yet it lags
digital innovation and relies on antiquated project
“breadth
It's rare to see two market-leading providers share a full-
of complementary operations and product capabilities,
management systems to overcome a complex value chain and but each with their own unique ways of addressing customer
fragmented contractor ecosystem. This acquisition, together challenges. We're thrilled to bring together our complementary
with continued support from our best-in-class set of enterprise approaches and build an even stronger platform with the
software investors, positions Buildertrend to significantly combined teams' scale and shared culture of innovation.”
expand our market share and continue delivering innovative,
value-added solutions that improve client success and Donny Wyatt, CEO & Co-Founder,
Rise Buildings
efficiency.”
Dan Houghton, Co-Founder & CEO,
Buildertrend
Source: Company websites and press releases.
23REDFIN ACQUIRES RENTPATH
Transaction Overview Redfin Financial Detail(1)
($MM) Revenues Adj. EBITDA
− On February 19, Redfin (NASDAQ: RDFN) $1,712
CAGR:
$1, 800
announced it has entered into an agreement $1, 600
$1,339 37%
to acquire RentPath for $608MM in an all-
cash transaction, which implies 3.1x EV /
$1, 400
CY20A revenue $1, 200
Acquires
$886
$1, 000
− RentPath owns ApartmentGuide.com, $780
Rent.com and Rentals.com and had ~16MM
$80 0
average monthly visitors in 2020 $60 0
$487
$40 0
− The acquisition is subject to antitrust approval $142
$608MM and bankruptcy court approval
$20 0
$52 $92
$0
($200)
($35) ($42)
CY18A CY19A CY20A CY21E CY22E
Redfin 3-Year Stock Price Performance
$120.00 12.0mm
Redfin to acquire RentPath
$100.00 Announcement 10.0mm
February 19, 2021
$80.00 8.0mm
$110 MM investment
$60.00 March 30, 2020 6.0mm
$40.00 4.0mm
$20.00 $575MM Convertible Note Offering 2.0mm
October 15, 2020
$0.00 0.0mm
Sep-18
Nov-18
Sep-19
Nov-19
Sep-20
Nov-20
Mar-18
Jan-19
Mar-19
Jan-20
Mar-20
Jan-21
Mar-21
May-18
May-19
May-20
Jul-18
Jul-19
Jul-20
Source: Capital IQ as of 3/31/2021, Wall Street Research, company websites, press releases and earnings transcripts.
(1) Projected figures per Wall Street research consensus. 24REDFIN ACQUIRES RENTPATH (CONT’D)
Strategic Rationale RentPath Timeline
Feb CoStar agrees to buy RentPath for $588MM as RentPath files
2020 for Chapter 11 bankruptcy protection
Redfin is a technology-powered RentPath is a digital marketing
residential real estate company. It solutions company that helps
achieved 23% organic visitor YoY Dec The FTC sues to block CoStar’s proposed acquisition of
consumers find apartments and
growth(1) 2020 RentPath, citing industry consolidation concerns
houses for rent. It achieved 26%
organic visitor YoY growth(2)
Dec Agreement to be acquired by CoStar is terminated following
2020 the FTC’s decision to sue to block the acquisition
Feb Redfin announces agreement to purchase RentPath for
2021 $608MM
Better search experience: More than a third of North American adults currently
rent, so showing rentals is an important expansion of Redfin's mission. Redfin
expects RentPath's rental listings to be on Redfin.com in late 2022 Select Transaction Commentary
Better value for advertisers: Redfin will create more opportunities for rental
“apartment
RentPath has more than 20,000
buildings on its rental
“beByasacquiring RentPath, Redfin will
committed as we are to the
properties promoted on RentPath. Redfin estimates that 10MM of Redfin's websites and grew its traffic more rental market. As part of the Redfin
40+MM monthly online visitors may also be interested in rental properties. than 25% last year. We can almost family, our platform will be well
double that audience, as one in five positioned to lead the market in the
of Redfin's 40+MM monthly visitors
“ quality and value of our products,
Traffic growth: Redfin and RentPath grew traffic by 20+% in 2020 and have also wants to see homes for rent. while giving our current and future
powerful channels for both meeting customers and marketing listings directly to customers access to many more
consumers.
“
high-intent renters through Redfin's
extensive network.
Improving the rental experience: While Redfin does not expect to hire real estate
Glenn Kelman, CEO, Dhiren Fonseca,
agents to represent renters, the acquisition presents an opportunity to make the
whole process of renting an apartment better.
Redfin CEO, RentPath
Source: Company websites, filings, earnings transcripts and press releases.
(1) Reflects trailing twelve months ended September 30, 2020.
(2) Reflects full year CY2020.
25STONE POINT CAPITAL AND INSIGHT PARTNERS TO ACQUIRE CORELOGIC
Transaction Overview CoreLogic Financial Detail(1)
($MM) Revenues Adj. EBITDA
− On February 4, CoreLogic (NYSE: CLGX)
$1,642 $1,666 $1,637
announced it had entered into a definitive
and merger agreement to be acquired by Stone $1,436 $1,441 CAGR:
Point Capital and Insight Partners for $80 per 3%
share in cash, representing an enterprise
value of approximately ~$7.7Bn
To acquire
− Purchase price implies 4.7x EV / CY20A
$638 $642 $606
Revenue and 12.1x EV / CY20A Adj. EBITDA $440 CAGR:
$493
multiples 5%
$7.7Bn
− The purchase price represents a 51%
Pending
premium over CoreLogic’s unaffected share
price on June 25, 2020
CY18A CY19A CY20A CY21E CY22E
CoreLogic 3-Year Stock Price Performance & Select Acquisition History
$90.00 Sells Jenark to MRI Software 12.0mm
October 29, 2020
$80.00 10.0mm
Cannae Holdings and Senator
$70.00 April 12, 2018 Investment Group Submit 8.0mm
Initial Takeover Offer Stone Point and Insight
$60.00
December 18, 2018 September 25, 2019 June 26, 2020 Partners to Acquire 6.0mm
$50.00 CoreLogic Announcement
February 4, 2021 4.0mm
$40.00
$30.00 January 22, 2020 2.0mm
December 17, 2018
$20.00 0.0mm
Sep-18
Nov-18
Sep-19
Nov-19
Sep-20
Nov-20
Mar-18
Jan-19
Mar-19
Jan-20
Mar-20
Jan-21
Mar-21
May-18
May-19
May-20
Jul-18
Jul-19
Jul-20
Source: Capital IQ as of 3/31/2021, Wall Street Research, company websites, filings, earnings transcripts and press releases.
(1) Projected figures per Wall Street research. 26STONE POINT CAPITAL AND INSIGHT PARTNERS TO ACQUIRE CORELOGIC (C ONT’D)
Business Overview Diversifying Revenue Base
Non-Mortgage Revenue Mortgage Revenue
100 %
Insight Partners is a venture capital Stone Point Capital is a financial 90%
and private equity firm investing in services-focused private equity 80%
high-growth technology and firm based in Greenwich, CT. The 70%
software ScaleUp companies that firm has raised and managed eight 60%
are driving transformative change. private equity funds with 50%
Founded in 1995, Insight Partners aggregate committed capital of 40%
has invested in more than 400 $25+Bn. Stone Point targets
30%
~50%
companies worldwide and has investments in companies in the
20%
~35% ~40%
10%
raised $30+Bn in capital global financial services industry 0%
commitments. and related sectors.
2018 2020 2022 Target
Select Transaction Commentary
“areStone Point and Insight Partners
highly respected investors who
“areCoreLogic’s proprietary data assets
increasingly important to its
recognize the value and potential of customers, and we look forward to
Provides property information, analytics, data-enabled software platforms and CoreLogic’s digital content, solutions leveraging our network within the
services with more than one million end-users and market-leading platforms that broader financial services industry to
power the housing economy. We
“
support the company’s next phase of
look forward to working closely with growth.
Stone Point and Insight to build on
41% Property Intelligence & Risk Management Solutions: Delivers
our record financial and operating
Total Revenue housing market and property-level insights, predictive analytics and “
risk management capabilities performance and accelerate our
CY20A
digital transformation and growth.
59% Underwriting & Workflow Solutions: Provides mortgage origination
Frank Martell, Chuck Davis,
Total Revenue and monitoring solutions, including underwriting-related solutions
and data-enabled valuations and appraisals President and CEO, CEO, Stone Point
CY20A
CoreLogic Capital
Source: Company websites, filings, presentations, earnings transcripts and press releases.
27I. PROPTECH MARKET SUMMARY
II. PUBLIC MARKETS
III. M&A AND MARKET COMPS BACK-UP
28PROPTECH PUBLIC COMPANY PERFORMANCE
LTM Share Price Performance
RDFN: 410% RMAX: 103%
EXPI: 1065% PURP: 163%
800% RLGY: 482%
700%
600%
542%
500%
400%
300% 115%
109%
200% 82%
100% 66%
60%
0% 55%
50%
(100%) 37%
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21
Residential RE Media / Commercial Property Mgmt RE Sharing RE Data / RE Traditional Credit / Mortgage
Broader Data
Brokerage Portals Brokerage Software Economy / Travel Software Mortgage / Title Marketing
Public PropTech Ecosystem
Property
Residential Commercial RE Sharing RE Data Traditional Broader Data Credit / Mortgage
RE Media / Portals Management
Brokerage Brokerage Economy / Travel / RE Software Mortgage / Title Marketing
Software
542% 115% 109% 82% 66% 60% 55% 50% 37%
LTM Share Price Performance
Source: Capital IQ as of 4/1/2021.
29PROPTECH PUBLIC COMPANY VALUATION
Enterprise Value / 2021E Revenue Enterprise Value / 2021E EBITDA
16.6x 33.9x 33.6x
29.8x
9.6x 19.6x 19.4x
7.9x 7.2x 15.8x
12.3x
4.4x 8.8x
3.1x 6.3x
2.3x 1.6x 1.2x
RE Sharing Property Credit / Traditional Property RE Sharing Credit / Traditional
RE Media / Broader RE Data / Residential Commercial RE Media / Broader Mortgage RE Data / Commercial Residential Mortgage
Economy / Mgmt Mortgage Mortgage Mgmt Economy /
Portals Data RE Software Brokerage Brokerage Portals Data Marketing RE Software Brokerage Brokerage
Travel Software Marketing / Title Software Travel / Title
Public PropTech Ecosystem
Property
Residential Commercial RE Sharing RE Data Traditional Broader Data Credit / Mortgage
RE Media / Portals Management
Brokerage Brokerage Economy / Travel / RE Software Mortgage / Title Marketing
Software
2.3x / 8.8x 16.6x / 29.8x 1.2x / 12.3x 7.9x / 33.9x 9.6x / 33.6x 4.4x / 15.8x 1.6x / 6.3x 7.2x / 19.6x 3.1x / 19.4x
2021E Revenue / 2021E EBITDA Multiple
Source: Capital IQ as of 4/1/2021.
Multiples represent median value of sector group. 30THE RISING ROLE OF SPACS (SPECIAL PURPOSE ACQUISITION COMPANIES)
SPAC Industry Overview
» SPACs are publicly traded “blank check” companies (i.e., “blind pool” capital) launched to acquire a public-market ready operating
business
» SPAC “sponsors” are typically experienced executive teams and / or deal professionals who take a shell company public, then source /
diligence a deal with a private operating company, negotiate the transaction and generally provide ongoing expertise / sit on the board
(but do not usually act as operators)
» The SPAC market shattered historical records in 2020 with 248 SPAC IPOs in the U.S. raising $83.0Bn in capital(1)
» Given general momentum in the PropTech market and public market investor appetite to invest behind the PropTech market, there
have been multiple successful PropTech mergers and active SPACs currently focused on the PropTech space (e.g., Property Solutions
Acquisition Corp & Lionheart Acquisition Corp. II)
Selected 2021 Q1 PropTech-Related SPACs
To merge with To merge with To merge with To merge with To merge with To merge with
Raising PIPE capital Raising PIPE capital Raising PIPE capital Raising PIPE capital Raising PIPE capital Raising PIPE capital
from from from from from from
Enterprise Value at Enterprise Value at Enterprise Value at Enterprise Value at Enterprise Value at Enterprise Value at
Announcement: $9.0Bn Announcement: $2.4Bn Announcement: $5.0Bn Announcement: $3.0Bn Announcement: $2.3Bn Announcement: $1.1Bn
Source: Company websites, press releases, company investor presentations, Wall Street research.
(1) SPAC Insider as of 1/4/2021. 31OFFERPAD TO GO PUBLIC THROUGH MERGER WITH SUPERNOVA PARTNERS
ACQUISITION COMPANY (NYSE: SPNV)
Transaction Overview Pro-Forma Ownership Structure
− On March 18, Offerpad announced that it had 3% Supernova Sponsor 2% FPA
entered into a definitive merger agreement
with Supernova Partners Acquisition Company 6% PIPE Investors
(NYSE: SPNV), a blank-check SPAC
To merge with 11% Equity Incentive Plan + ESPP(2)
− The offer price implies an enterprise value of
~$2.4Bn, which represents 1.0x 2022E
Revenue and 0.6x 2023E Revenue
− The transaction is expected to provide up to
Enterprise Value at
$635MM in cash proceeds, including $200MM
67%
Announcement:
of PIPE commitments, $403MM of cash held in 12% Public Equity Holders Offerpad Equity
$2.4Bn
the trust account of Supernova, $50MM of Holders
Supernova FPAs, and $51MM of cash on the
balance sheet(1)
Financial Overview Offerpad vs. Traditional Real Estate Transactions
$9
2.0 %
$8
(0%) 0% 1.0 %
30+
30+ Days & 10+ showings &
30-45 days
$7
-
Traditional Days
$1,000s of list 30+ days on
in escrow
ready repairs market
$6
(2%)
(1.0%)
Prepare listing Showings /
Broker search Closing
$5 (2.0%)
& marketing Open house
$3.9
$4
(4%) (3.0%)
24 hrs to
0 list ready 0 showings & Close in as
receive cash
$3
$2.4 (4.0%)
repairs open houses little as 3 days
offer
$2
$1.4 (5.0%)
$1.1
$1 (6.0%)
-
• Traditional real estate transactions can take 6+ months to close
• This results processes that are time consuming, lack transparency and
(7.0%)
CY20E CY21E CY22E CY23E
involve multiple counterparties
Total Revenue ($Bn) Adj. EBITDA Margin • Offerpad enables sellers to receive certainty in 24 hours
Source: Company websites, press releases and company investor presentation.
(1) After $60MM in est. transaction fees & expenses and $8MM in debt paydown.
(2) No grants have been made under the incentive plan
32OFFERPAD TO GO PUBLIC THROUGH MERGER WITH SUPERNOVA PARTNERS
ACQUISITION COMPANY (NYSE: SPNV) (CONT’D)
Conversion Metrics Market Growth Potential
10-15k 16(1) 99% Future
Requests per Markets Acquisitions sourced
month via Offerpad platform
2021E Opportunity
Each market adds
Attractive top of 20%+ $3k Markets 19(4) 48
funnel acquisition Organic Blended CAC of ~$500MM(5) in revenue
seller
Each % share adds
Market Share ~1% 4%
77% 99% ~$6Bn(5) in revenue
Limited competition Of sellers contacted 1 Underwriting
agent before selling(2) accuracy
Annual revenue /
$1.4Bn 16x $23Bn(5)
run rate revenue
Strong conversion with 3.6% 2-3x
Gross request to Conversion opportunity
significant upside close conversion(3) increase potential
Contribution Margin
$52MM $1.6Bn+
after Interest
Attractive Unit Economics
$30
2020E Contribution Margin per Home after Interest ($000s)
$24 ($2)
($9)
$25
$20
~$6-$11 ~$15-20
$12
$15
$10
$8 $1 $9
$5
$0
Net Sale Holding Selling Contribution Contribution Other Total Contribution LT Additional Flex Total LT
Proceeds Costs Costs Margin Margin after Services Margin after & Ancillary Contributiuon
Interest Interest Contribution Margin after
Interest
Express
Source: Company websites, press releases and company investor presentation. (4) 14 as of December 2020.
(1) 2 of the 16 markets were launched in 2021.
(2) Estimates per National Association of Realtors.
(5) On average, reflects annual, run-rate revenue opportunity in 48 markets 4% market share, based
on 2019 transaction data.
33
(3) As of December 2020 results.HIPPO TO GO PUBLIC THROUGH MERGER WITH REINVENT TECHNOLOGY PARTN ERS Z
(NYSE: RTPZ)
Transaction Overview Pro-Forma Ownership Structure
− On March 4, Hippo Enterprises Inc. announced 4% SPAC Public Holders
that it entered into a definitive business
agreement with Reinvent Technology Partners 9% PIPE Holders
Z (NYSE: RTPZ), a blank-check SPAC launched
To merge with by Reinvent Capital
− The offer price implies an enterprise value of
~$5.0Bn, which represents 12.5x 2020A(1) Total
Written Premium and 4.4x 2023E Total Written
Enterprise Value at Premium
Announcement: 87%
− The transaction is expected to provide up to
$5.0Bn
$638MM in cash proceeds, including PIPE Existing
commitments of $550MM and up to $230MM Shareholders
of cash held in the trust account of Reinvent
Technology Partners Z(2)
Financial Overview(1) Product Overview
$1,100 50. 0%
7% Modern Home Insurance
(8%)
$900 - Policies provided by Hippo set a new standard of
(38%) $789 home insurance and offer protection for everything
from traditional property & liability coverage to
$700
individual devices and appliances
(50.0% )
(108%) (89%)
$488
$500 (100.0 %) Home Wellness
(141%) Hippo helps care for your home and prevent small
(168%) $282 issues from becoming expensive headaches with
$300 (150.0 %)
complimentary smart home monitoring systems
$151
$87 and virtual home maintenance services, DIY guides
$100 $49 $63 (200.0 %)
and on-demand bookings
($100) CY19A CY20A CY21E CY22E CY23E CY24E CY25E (250.0 %)
60-seconds 5 minutes Up to 25%
Total Revenue ($MM) Operating Margin To receive a quote To purchase a policy Savings
Source: Company websites, press releases and company investor presentation.
(1) 2020A results are unaudited, preliminary results that are subject to change.
(2) After $100M cash consideration to existing shareholders and $42MM in est. transaction costs.
34HIPPO TO GO PUBLIC THROUGH MERGER WITH REINVENT TECHNOLOGY PARTN ERS Z
(NYSE: RTPZ) (CONT’D)
Growth Strategy Metrics & Performance Indicators
Total Written • Highly recurring and predictable
Improved unit
Premium(1) • Unaffected by short-term fluctuations in loss ratio
economics, profits Increased scale
reinvested in growth
Premium • Important driver of future Total Written Premium and
Renewal Rate customer lifetime value
Increasingly
Predictable &
Higher customer • Driver of long-term profitability
satisfaction &
Profitable More data,
Loss Ratio • Improves with cohort tenure and becomes less volatile as
deeper insights
retention Company scales and diversifies geographically
• Source of capital for business operations
More accurate
Adjusted Gross
• Neutralizes for carrier/channel mix and reinsurance
pricing, better Profit structure
underwriting results
Select Deal Commentary
“protection
We’ve built products and services […] to broaden home
to include proactive, smart insurance coverage. The
“modern
Hippo is reimagining home insurance to serve the needs of the
homeowner. Through deep investments in
evolution of our industry must be grounded in meeting today’s technology, data and homeowner services, Hippo has built the
customer needs. Through this strategic partnership with country’s most radically user-friendly home insurance
Reinvent and an incredible team of world-class entrepreneurs, company that provides it with a competitive advantage over
investors and employees, we can’t wait to transform the industry incumbents. Hippo is positively disrupting the
homeowner experience and accelerate our growth. ” insurance industry by offering consumers the first online buying
experience that is fast, friendly and affordable ”
Assaf Wand, Co-Founder & CEO, Mark Pincus, Co-Lead Director,
Hippo Insurance Reinvent Technology Partners Z
Source: Company websites, press releases and company investor presentation.
(1) Total Written Premium represents the Gross Written Premium of policies underwritten by Hippo and its affiliates plus the premium of policies placed with third-party insurance carriers where Hippo
earns a recurring commission payment.
35MATTERPORT TO GO PUBLIC THROUGH MERGER WITH GORES HOLDINGS VI
Transaction Overview Pro-Forma Ownership Structure(2)
− On February 8, Matterport, Inc. announced 3.0% GHVI Sponsor
that it entered into a definitive agreement to
merge with Gores Holdings VI (NASDAQ: GHVI), 11.8% GHVI Shareholders
a blank-check special purpose acquisition
To merge with company
10.1% PIPE Investors
− The offer price implies an enterprise value of
~$2.3Bn, which represents ~26.3x 2020E
revenue
Enterprise Value at
Announcement: − The transaction was expected to provide up to
$615MM in cash proceeds to the balance 75.1%
$2.3Bn
sheet, including a fully committed PIPE of Investor Rollover
$295MM and up to $345MM of cash held in
the trust account of Gores Holdings VI(1)
Revenue Breakdown ($MM)(3) Key Metrics
10.5% 20.0%
$900
3.5% 10.0% Unit Economics Attractive Customer Base
$800
(4.5%) $747
(8.5%) -
$39
$700
(22.0%)
$62 (10.0%) 11.7x 250k+
$600 (23.6%) $53
$510 (20.0%) CY20E LTV / CAC(4) Customers across diverse
$500
$37 (30.0%) verticals
$55
$40
$323
82% 13%+
$400
(40.0%)
(58.9%) $36 $593
$300
$203 (50.0%)
$48
$19 CY20E Subscriber Growth Customers of Fortune 1000
$200
$123 $378 (60.0%)
$86 Margin(5)
$100 $46 $220 (70.0%)
- $42 $66
$121
(80.0%) 112%MATTERPORT TO GO PUBLIC THROUGH MERGER WITH GORES HOLDINGS VI
(CONT’D)
Investment Thesis Total Addressable Market
Large, relatively unpenetrated $1.2Tn Total Addressable Market Global Opportunity Matterport ARR
Market leader fueling the digital transformation of the built world 4Bn 5%
Buildings Penetration
Unrivaled software & data platform with significant expansion
opportunities
20Bn 1Bn
Global, blue chip customers spanning variety of end markets Spaces Spaces
Rapid growth, efficient customer acquisition and expanding margins
$5 $60Bn ARR
Leadership team with large-scale platform experience Per space per month
$1.2Tn TAM(1)
Platform Overview
Extensible Platform
Ubiquitous Capture Spatial Data Library AI Powered Insights
Ecosystem
− Breakthrough capture − Millions of buildings & spaces − 3P software marketplace − Computer vision analysis
technology
− Billions of square feet captured − Developer & partner APIs − Deep spatial indexing
− AI-powered 3D reconstruction
− Billions of 3D data points − Robust data services layer − Search engine for buildings
− Smartphone capture
− Deep learning analysis for
“building Intelligence”
Matterport is well-positioned to become the “digital platform” for buildings and real property
Source: Company websites, press releases and company investor presentation.
(1) TAM estimate from Savills World Research and the Company. 37You can also read
