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PRELIMINARY CONFIDENTIAL DRAFTReal Estate TechnologyMarket UpdateQ2 2019
EXECUTIVE SUMMARY – Q2 2019 REAL ESTATE TECHNOLOGYReal estate technology continues to be one of the most active areas of financing and M&A activity through the first half of 2019 The U.S. real estate tech sector received 3.0Bn of growth equity capital in 1H 2019 in addition to more than 1.4Bn in debt for iBuyer and REfinancing companies Investments continue to grow in size, with average equity financings over 21MM across 65 deals in Q2 2019, as competition for high-qualityinvestments increases and the number of active strategics and private equity investors in the space continues to growQ2 2019 saw commercial real estate technology companies drive significant activity, with a flurry of capital raises and M&A transactions VTS raised 90M at a 1.0Bn valuation led by Brookfield Ventures, the venture arm of Brookfield Asset Management, signaling strong demand fromreal estate investors / property managers for next-generation solutions to streamline their operations and improve margins A sharp increase in private equity and strategic driven M&A reflects the growing influence of CRE tech companies and the land grab that’s currentlyunderway as acquirers look to build platforms in the space– Silver Lake and Battery Ventures backed LightBox announced two acquisitions in Q2 2019, Real Capital Markets and Digital Map Products, as theylook to build an end-to-end software and data platform in the CRE space targeting commercial services firms, property owners, lenders and investors– Green Street Advisors and Real Capital Analytics (RCA) both partnered with PE firms in Q2 2019, with Green Street being acquired by WCAS and RCAreceiving a significant minority investment from Susquehanna Growth Equity we expect both of these firms to continue to be active in thepartnership and M&A market as they look to accelerate growth1H 2019 investments in residential real estate technology have been largely centered around iBuyer and purchase financing firms who have receivedsignificant growth equity and debt to expand into new markets In the RRE software space, Vista-backed Lone Wolf Technologies acquired zipLogix in a highly strategic transaction that continues to consolidate the realestate transaction back-end and workflow marketSelect Q2 2019 Active InvestorsSelect Q2 2019 Active Acquirers2
GCA 1H 2019 PROPTECH TRANSACTIONSGCA is one of the most active advisors to the global proptech ecosystem, with four announced dealsin 1H 2019 and 21 proptech deals globally in the past 3 yearsJanuary 2019April 2019May 2019May 2019Real Estate Data LicensingResidential Real Estate Software /Transaction ManagementCommercial Real Estate Software /Business IntelligenceInsurance Marketplace3
THE LEADING ADVISOR TO THE PROPTECH ECOSYSTEMThe Leading Advisor in the Property Tech EcosystemChris GoughManaging DirectorHead of Real Estate TechnologyPhone: (415) 318-3658cgough@gcaglobal.comAcquired byAcquired byAcquired byAcquired byA Portfolio Company ofA Portfolio Company ofWe advised the sellerWe advised the sellerWe advised the sellerWe advised the sellerMajority InterestAcquired byAcquired byAcquired byAcquired byWe advised the sellerWe advised the sellerWe advised the sellerWe advised the sellerAcquired byAcquired byInvestment fromAcquired byWe advised the sellerWe advised the sellerWe advised the sellerWe advised the sellerAcquired byMinorityInvestment FromAcquired byMBO backed byWe advised the sellerWe advised the sellerWe advised the sellerWe advised the sellerKey Sub-Sector Coverage VerticalsResidential RE SoftwareCommercial RE SoftwareMortgage / LendingTitle / InsuranceHome ServicesFacilities ManagementConstruction TechIWMS4
CASE STUDY: SALE OF ATTOM DATA SOLUTIONS TO LOVELL MINNICK PARTN ERSGCA acted as exclusive financial advisor to ATTOM, a leading provider of national real estate datasolutions, on its sale to Lovell Minnick Partners.TRANSACTION DETAILSClosedJanuary 2019SECTORSReal Estate / MortgageTechnologyProperty / InsuranceTechnologyData LicensingDEAL TYPEM&ATransaction SummaryStrategic Rationale On January 8, 2019, Lovell Minnick Partners announcedthat it had completed the acquisition of ATTOM DataSolutions (“ATTOM” or the “Company”) ATTOM is a leading, scale platform investment in the realestate data solutions market Company’s proprietary data solutions includeproperty tax, deed, mortgage, foreclosure,environmental risk, natural hazard andneighborhood data for 150 million U.S. residentialand commercial properties, covering 99% of thenation’s population Company serves 225 data customers withmultiyear contracts ATTOM management has generated strong organicgrowth and successfully pursued accretive strategicopportunities, including its acquisition ofneighborhood data provider Onboard Informatics inearly 2018Financial terms of the transaction were notdisclosed Headquartered in Irvine, California, ATTOM is a leadingprovider of comprehensive data solutions to the realestate, mortgage, insurance, marketing and adjacentmarkets Lovell Minnick Partners is a private equity firm withexpertise in investing in the financial technology andservices industry. Since its inception in 1999, LovellMinnick Partners has raised 2.7 billion in committedcapital and has completed investments in over 45companies GCA acted as exclusive financial advisor to ATTOM inconnection with the transaction Lovell Minnick will continue to support management inexecuting its strategic plan to build the leadingtechnology platform in the real estate data industry5
CASE STUDY: SALE OF ZIPLOGIX TO LONE WOLF REAL ESTATE TECHNOLOGIESGCA acted as exclusive financial advisor to zipLogix, a leading provider of real estate transactionmanagement software, on its sale to Lone Wolf Technologies, a portfolio company of Vista Equity Partners.TRANSACTION DETAILSClosedApril 2019SECTORResidential Real EstateTechnologyDEAL TYPEM&ATransaction SummaryStrategic Rationale On April 22, 2019, Lone Wolf Technologies (“Lone Wolf”)announced that it had completed the acquisition ofzipLogix LLC (“zipLogix” or the “Company”) zipLogix will enhance Lone Wolf’s position as the leader inreal estate transaction forms Financial terms of the transaction were notdisclosed Headquartered in Fraser, Michigan, zipLogix is the leadingprovider of real estate transaction forms and transactiondocumentation management software for the residentialreal estate sector Lone Wolf, a portfolio company of Vista Equity Partners,provides real estate software solutions, such as backoffice management, marketing and e-signature platforms,to more than 20,000 real estate offices across NorthAmerica zipLogix management has advanced marketpenetration in the Company’s forms business havingsuccessfully developed strong upsell opportunitiesincluding e-signature, CRM and database linkingsolutions Lone Wolf will support zipLogix’s continued operationsand leverage the combined Company’s cross-sellingopportunities The combined company will service over 1.4 millionagents, 20,000 offices, and 1,000 MLSs and Associationsin the U.S. and Canada GCA acted as exclusive financial advisor to zipLogix inconnection with the transaction6
CASE STUDY: SALE OF REAL CAPITAL MARKETS (RCM) TO LIGHTBOXGCA acted as exclusive financial advisor to Real Capital Markets, the leading commercial real estatetransaction marketplace, SaaS transaction management and business intelligence platform, on its sale toLightBox, a portfolio company of Silver Lake and Battery VenturesTRANSACTION DETAILSClosedMay 2019SECTORSCommercial Real EstateSaaSReal Estate TechnologyDEAL TYPEM&ATransaction SummaryStrategic Rationale On May 13th, LightBox Holdings, L.P. (“LightBox”)announced that it had completed the acquisition ofRealCapitalMarkets.com, LLC (“RCM” or “the Company”) RCM is central to Lightbox’s strategy of aggregatingtransaction volume and deepening relationships withlarge commercial services firms to expand its upstreamconnectivity to the commercial real estate transaction Financial terms of the transaction were notdisclosed Headquartered in Carlsbad, California, RCM is a leadingonline marketplace and SaaS platform supportingcommercial real estate (“CRE”) brokers throughout thetransaction process 50% of all U.S. CRE assets greater than 10mm arebrought to market and sold using RCM’s onlinemarketplace Since inception, RCM has executed over 65,000assignments with total consideration in excess of 2.3 trillion RCM’s solutions include property marketing, transactionmanagement and business intelligence tools to unifybroker-level and firm-level data and workflows RCM’s customers rely on the Company’s workflow,marketing and business intelligence tools to drivetransactions and productivity LightBox, a portfolio company of Silver Lake and BatteryVentures, delivers smarter commercial real estatedecision-making through data, analytics and workflowinnovations GCA acted as exclusive financial advisor to RCM inconnection with the transaction Lightbox has acquired 4 companies since April 2018 thatcomprehensively create a leading commercial real estatetechnology platform focused on the transaction, lendingdata and analytics segments of the market – combinedentity is a scale leader with established relationships withlenders, commercial services firms and principle investors7
Q2 2019 PRIVATE CAPITAL DEAL DASHBOARDQuarterly Financing Activity(1)Select Q2 2019 Financing Transactions( MM)( MM)Equity RaiseNumber of DealsDebt RaiseAmountInvestedFunding toDatePostMoneyValuation6/24 130 310NA6/19 32 38 1206/11 30 36 816/4 33 137 1986/3 115NA 2205/22 12 21 485/21 37 72 1255/16 43 90NA5/15 12 30 1085/9 12 Equity / 203 Debt 23 Equity / 303 DebtNA5/7 90 197 1,0004/30 29 40 1104/25 25 87 2804/18 160 185 2404/11 300 480NA4/2 20 Equity / 200 Debt 55 Equity / 216 DebtNAAnn.Date 2,676104 969 1,700 1,7528583 100 1,356 1,298 506258 1,08460 10056 403 1,29865 355 1,707 422Avg. EquityInvestment: 1,349 1,306(7) 984 943Q3-17Q4-17Q1-18Q2-18Q3-18Q4-18Q1-19Q2-19 7.3 23.2 25.8 11.7 21.8 11.4 16.4 20.8Source: Pitchbook and press releases.Represents U.S. data across CRE / Investment, Residential Real Estate and MortgageTechnology.CompanySelectInvestor(s)(2)(1) Excludes Airbnb, Houzz, OYO Hotels and We Company financing rounds.(2) Includes 89MM to buy out DMGT’s existing stake; includes an unknown amount ofdebt.8
REAL ESTATE PRIVATE COMPANY FUNDING LEADERS( MM)Residential Real Estate TechCompanyFounded(1)(1)Mortgage / Closing / Insurance TechFunding toDateCompanyFoundedFunding toDateCRE / Facilities / Construction TechCompanyFoundedFunding toDate2014 1,345 Equity/ 3,000 Debt2015 4802015 1,1102012 1,1132012 3102012 3262009 2132013 1662002 3072014 1852014 1302013 2972015 150 Equity / 825 Debt2018 1201995 2592008 1042010 1122011 1972011 1032015 1102015 1792008 852009 902012 1752012 852010 852010 1372015 762015 782014 133(3)(2)Capital raise completed in Q2 2019Source: Pitchbook, Company filings, Company websites, press releases.(1) Excludes Airbnb and Houzz financing rounds.(2) Equity / debt mix per Mike DelPrete.(3) Represents equity invested only.9
REAL ESTATE PRIVATE COMPANY FUNDING LEADERSEquity Raised to Date:111 500MM 200MM - 500MM 100MM - 200MMOther Mega Funding Leaders( 4.4Bn)( 614MM)( 420MM)( 1.6Bn) ( 7.4Bn Equity/ 1Bn Debt) 50MM - 100MM 25MM - 50MMSource: Pitchbook, Company filings, Company websites, press releases.10
Q2 2019 M&A DEAL DASHBOARDQuarterly M&A Activity(1)Select Q2 2019 M&A Transactions( Q4-18Q1-19Q2-19(2)AcquirerEnterprise Value6/25NA6/20NA6/20NA6/12NA6/416Target(Credit, Verification, REO &Auction Businesses)NA6/3NA5/23NA5/15NA5/13NA5/13NA5/3 5005/1 3354/22NA4/17NA4/3NASource: Capital IQ , Pitchbook and press releases.(1) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.(2) Q2 through 6/25/19.11
CRE TECH SPOTLIGHT – GROWING STRATEGIC AND INSTITUTIONAL INTERES T INCOMMERCIAL REAL ESTATE TECHNOLOGY“ For years, real-estate technology startups watched from the fringes as big banks and venture-capital firms lavished attentionon financial-technology firms. Now, ‘proptech’ has joined the party. Startups are raising more cash than ever while landlords areadopting a range of new software and hardware that is changing the way they do business.Peter Grant & Konrad Putzier,(1)Wall Street Journal” Q2 2019 saw significant activity in the commercial real estate technology space, featuring major platform acquisitions and private capital raisesdriven in part by strategic investor participation– Silver Lake and Battery Ventures backed Lightbox acquired two CRE tech firms in Q2– Capital raises in the CRE tech space included strategic investors such as Brookfield, Cox Enterprises, RealPage and Starwood CapitalSelect Q2 CRE Tech Capital Raises“ Institutional investors clearly see the value inproptechs. In our survey of 500 global CRE institutionalinvestors, nearly 90 percent of respondents believeproptechs will have a moderate to significant influenceon the CRE industry. Investors plan to commit anaverage of 14 percent of CRE capital to proptechsglobally.Surabhi Kejriwal & SaurabhMahajan, Deloitte (2)”( MM)Amt.InvestedFunding toDatePost-MoneyValuation6/19 32 38 1206/4 33 137 1986/3 115NA 2205/15 12 30 1082/27 90 197 1,000DateCompanySelect Investor(s)(3)Denotes strategicinvestor participationSource: Capital IQ , Pitchbook and press releases.(1) Wall Street Journal, 7/2/19.(2) Deloitte, 3/13/19.(3) Includes 89MM to buy out DMGT’s existing stake; includes an unknown amount of debt.12
CRE CASE STUDY: LIGHTBOX – BUILDING A LEADING CRE PLATFORM LightBox has assembled a leading end-to-end commercial real estate technology platform: Acquired four companies since April 2018, that collectively create one of the largest tech players in the CRE market Platform built to service all constituents in the CRE transaction: brokers, lenders, commercial services firms, investors and CREtransaction service providersDatabase of environmentalrecords and land useinformation / underwriting &due diligence platformThe world’s largest online commercial real estatetransaction marketplace, SaaS transaction managementand business intelligence TransactionWorkflowApplicationsSale / ices enceRefinancingAppraisersCloud-based real estatedata, analytics and GISsolutionsMarket Data /Analytics talMarketsReal estate appraisalmanagement PlannersAppraisal /UnderwritingData / lFirms13
CRE CASE STUDY: REAL CAPITAL ANALYTICS RAISES 115MM IN DEBT AND EQUITYFOR RECAP & EXPANSIONTransaction OverviewPE GrowthRCA Overview On June 3, Real Capital Analytics (RCA)announced that it had received growthfunding from Susquehanna Growth Equity(SGE) in a combination of cash and debttotaling 115MMHeadquarters:New York, NYFounded:2000Employees: 90Description:Provider of commercial real estate market data and analytics. TheCompany offers a database of commercial real estatetransactions, property sales, recapitalization and refinancingacross markets and property types, enabling investors, lenders,brokers and advisors to get comprehensive data and uniqueinsight to formulate investment strategy, assess risk, source newopportunities and execute transactions The investment valued the Company at 220MM 115MM Invested 89MM will be used to purchase Daily Mailand General Trust’s 40% stake acquired in2007Current Investors: RCA plans to use the remaining 26MM forinvestments in overseas CRE data firmsRCA HighlightsRCA Fundraising TimelineCurrent InvestmentsMarket-Leading Position2015Indian commercial real estate data andanalytics provider2017Dutch commercial real estate data andanalytics provider tracking over 400,000buildings200,000Investors ProfiledDateSeries ARecapitalization / PE Growth1/1/076/3/19 7.5NA 18.8 220Amount RaisedPost-MoneyValuation 18TrTotal recordedtransaction value172Countries Tracked2018 / 2016Commercial real estate data and analyticsprovider for U.S. and Latin Americanproperties( MM)100%Penetration withtop CRE brokersSource: Pitchbook, Company website, news reports, press releases.Select Deal Commentaryteam and I are“ Myconfident that SGE willprovide tremendoussupport, expertise andfinancial flexibility to RCA.-Bob White, Founder & CEO”gotten to know Bob White and“ We’vethe RCA team over the last decade andcould not be more excited to supportRCA as it continues to transform thecommercial real estate industry.-Scott Feldman, Managing Director,SGE”14
CRE CASE STUDY: VTS RAISES 90MM IN SERIES D ROUNDTransaction OverviewSeries D 90MM InvestedVTS OverviewHeadquarters:New York, NY On May 7, VTS announced that it hadreceived 90MM in its series D round offunding led by customer and new investorBrookfield Ventures, the technologyinvestment arm of Brookfield AssetManagement vider of a commercial property leasing and asset managementplatform. The Company’s platform allows landlords to maximizeportfolio performance by streamlining their leasing and assetmanagement process and unlocking real-time insights The investment puts VTS’s total equity raisedat 197MM with a post-money valuation at 1.0BnHistory:Merged with competitor Hightower Inc. in 2016Current Investors: VTS plans to use the proceeds to enhance itscommercial property management platformand launch Truva, its CRE marketplaceVTS HighlightsVTS Fundraising TimelineProduct SummaryVTS gementDealManagementVTS ket MetricsPortfolio RiskManagementMarket-Leading Position47,000Buildingsmanaged(1)( MM)DateSeedSeries A Series A1 Series B Series C Merger(2) Series mount Raised 1.4 7.0 3.3 21.0 55.0 19.2 90.0Raised to Date 1.4 8.4 11.7 32.7 87.7 106.9 196.9 10.6 23.5 33.3 90.3 186.0 10Bn Post-MoneyValuationSquare FeetManagedSelect Deal Commentary35InternationalMarkets35,000Users 300.0 1,000.0a strong sign in any industry when a company’s largest“ Generallycustomers are their leading investors. In my opinion, the long-termoutlook for VTS is extremely bright as it has found a way to equally alignwith brokers and owners with value creation tools that optimizeotherwise archaic processes.-Jesse Weber, Managing Director, Newmark Knight Frank”Source: Crunchbase, Pitchbook, Wall Street Journal, Company website, press releases.(1) Figures as of 5/7/19.(2) Represents merger with Hightower; Amount Raised represents Hightower’s funding to date; Post-Money Valuation represents valuation of combined company.15
RRE TECH SPOTLIGHT – ZILLOW BUILDS MOMENTUM WITH MORTGAGE AND HO MESEXPANSION Zillow YTD stock price has outperformed the market, driven by strong momentum behind the Zillow Offers initiative and continued growth of its mortgagesegment with MLOA Meanwhile, several traditional and tech-driven brokerages have lagged in 1H 2019, partially driven by five straight months of declining YoY home sales tostart the year as well as a fiercely competitive environment to attract and retain top agentsZillow Group (Nasdaq:ZG) YTD Stock Price Performance(1) 50.002/21/19: Zillow announces the appointment ofCo-Founder Rich Barton as CEO5/9/19: Zillow discloses the sale of 414 andpurchase of 898 homes in Q1 through its Offersbusiness, a part of the Homes segmentZillow8700.0Performance 47.1555% 45.008200.021%Share Price (USD) 40.007700.0YTD Stock PricePerformance 35.00(1)7200.025% 30.00 25.00Jan-192/21/19: Zillow announces Q4 results withrevenue above Wall Street estimates, driven bygrowth in the iBuyer (Homes) segment andMortgage revenue up 44% YoY following theacquisition of Mortgage Lenders of America(8%)(37%)6700.05/9/19: Zillow announces Q1 results with revenueand EBITDA above Wall Street estimates drivenlargely by a revenue beat in its Homes segment(56%)6200.0Feb-19Mar-19Apr-19May-19Share PriceSource: Capital IQ , Company filings.(1) Represents period from 1/1/19 through 7/1/19.Nasdaq.Jun-19Dot16
RRE CASE STUDY: ZILLOW CONTINUES ROLL OUT OF ITS OFFERS PROGRAMOffers ProgramSelect iBuyer Landscape as of Apr. 2019 On April 12, 2018 Zillow (NasdaqGS: ZG) announced plans to expandits“Offers” (iBuyer) program, following its launch in early 2017Founded/ EnteredFunding ( MM) 1,345 Equity / 3,000 Debt 150 Equity / 825 Debt 58 Equity / 414 Debt 56 Equity / 216 DebtCurrent Markets Zillow’s iBuyer program is now active in Atlanta, Charlotte, Dallas, Denver,Houston, Las Vegas, Phoenix, Raleigh and Riverside and plans to grow theprogram to 20 markets by 20202014 Zillow believes the iBuyer program represents a 1.8Tn TAM2015 In 2018, Zillow purchased 686 and sold 177 homes; the programaccelerated in 2019, with 898 purchased and 414 sold homes in Q1 2019alone; 993 homes are held in inventory as of March 3120172017Mkt Cap: 9.3Bn Purchasing homes presents Zillow with an opportunity to enter intoadjacent markets such as mortgage / title2017Mkt Cap: 1.7Bn(1)20152018Offers Purchasing and Financing Zillow will focus on single family homespriced between 200k - 300k Zillow will commit 20% of the value ofthe home in equity, with the remainingbalance held as debt191253(1)Mkt Cap: 843MM(1)963Offers Model (2)Revenue (Selling price of homes)Less: Purchase price of homesLess: Costs to purchase homes (commissions, escrow, title)Less: Home improvement costs (including direct labor)Gross Margin Zillow will work with lenders to create afunding vehicle to finance theseproperties Zillow assumes a 90-day holding periodLess: Holding costs (insurance, taxes, HOA fees)Less: Costs to sell homes (closing costs, commissions, escrow, title)Less: Corporate overhead (indirect labor, marketing)EBITDA“Assuming an average transaction value of 260k Zillow can expect a netoperating profit of 7k ( 3% margin)” (2)Source: Press releases, public filings, Cowen Research, Susquehanna Financial Group, Pitchbook and company websites.(1) Market capitalization as of 7/1/19.(2) Cowen Research, 4/26/2018.17
MORTGAGE / FINANCING TECHNOLOGY SPOTLIGHT Mortgage origination volume declined significantly in Q1 2019, driven by declining purchase volume and a slowdown in refinancing activity Nevertheless, there continues to be a highly active market in the mortgage tech category on both the M&A and growth capital front– Thoma Bravo closed its acquisition of Ellie Mae in Q2, Simplifile was acquired by ICE for 335MM and Blend raised 130MM in growth equity fromTemasek and General AtlanticSelect Q2 Mortgage Tech Capital RaisesSelect Q2 Mortgage Tech M&A Transactions( MM)Amt.InvestedFunding toDatePost-MoneyValuationDate6/24 130 310NA6/56/11 30 36 816/4DateCompanySelect t Businesses)5/16 43 90NA5/1 3355/9 12 Equity / 203 Debt 23 Equity / 303 DebtNA4/24NA4/1NANANA4/1NALTM Mortgage Origination ( Bn) 452 457 118 111LTM Mortgage Origination Refinance ShareNew Purchase VolumeRefinancing Volume 392 325 101 97 334 346Q2-18Q3-18 291Q4-18 228Q1-19Source: Capital IQ , Mortgage Bankers Association as of 6/25/19.26%24%26%30%Q2-18Q3-18Q4-18Q1-1918
MORTGAGE CASE STUDY: BLEND RAISES 130MM IN SERIES E ROUNDTransaction OverviewSeries EBlend Overview On June 24, Blend announced that it hadraised 130 million in its series E round offunding led by General Atlantic and Temasekthat also included 8VC, Founders Fund,Greylock Partners and Lightspeed VenturePartnersHeadquarters:San Francisco, CAFounded:2012Employees: 400Description:Developer of a digital lending platform intended to simplify andfasten consumer finance processes. The company's machinelearning based platform uses verified source data to build aconsumer's complete financial profile, automates third-partyverification to reduce frauds, identifies delay-causing issues andmanages the tasks needed to close a loan. The investment puts Blend’s total equityraised at 310MM 130MM Invested Blend plans to use the money to grow itsteam, seek new partnerships, develop newtechnology and expand its offering into abroader suite of consumer lending productsBlend HighlightsCurrent Investors:Blend Fundraising TimelineCustomersProduct SummaryMortgageCapabilities: Application Portal/Processing CRM Data ManagementThird-Party Integrations: LOS Lead Generation Credit Price Engine Processing & UnderwritingSeries A Series B Series B1 Series CDate6/22/1210/2/14Amount Raised 6.1 11.0 10.0 38.0Raised to Date 6.1 17.1 27.1 65.1Post-MoneyValuation 20.1 61.0Series D Series D1 Series E7/14/15 12/18/15 8/24/17 100.0 270.03/27/186/24/19 100.0 15.0 130.0 165.1 180.1 500.0 600.0 310.1(1)NASelect Deal Commentaryconversations with investors over the past few months, it was“Inclearourthatthere is an appetite to understand and drive the future oftechnology in financial services—and Blend is at the forefront. Financialinstitutions, and lenders specifically, are under increasing pressure fromconsumers to deliver a top-notch digital, intuitive, and satisfyingexperience. Blend’s lending platform can deliver all three.-Marc Greenberg, Head of Finance, Blend“Powers 1B in loans per daywith 150 lending institutions( MM)Deposit Digital LendingAccountsPlatformSource: Pitchbook, Company website.(1) Pitchbook estimate.HomeEquity19
PUBLIC COMPANY PERFORMANCELTM Share Price PerformanceTREE: 81%QNST: 29%MONY: )(49%)(60%)Jul-18Credit / MortgageMarketingAug-18Aug-18Property MgmtSoftwareSep-18Broader DataOct-18Nov-18TraditionalMortgage / TitleDec-18RE Media /PortalsJan-19Feb-19RE Data / RESoftwareMar-19CommercialBrokerageApr-19May-19RE SharingEconomy / TravelJun-19ResidentialBrokeragePublic Real Estate Technology EcosystemCredit / MortgageMarketingPropertyManagementSoftwareBroader DataTraditionalMortgage / TitleRE Media / PortalsRE Data/ RE SoftwareCommercialBrokerageRE SharingEconomy / (49%)LTM Share Price PerformanceSource: Capital IQ.20
PUBLIC COMPANY VALUATIONEnterprise Value / 2019E RevenueEnterprise Value / 2019E EBITDA21.7x 21.1x11.8x18.2x 18.1x6.7x12.4x6.0x9.2x5.3x3.5xBroaderDataCredit 1.5xRE Media /Portals16.3x1.0x0.9xRE Sharing RE Data / RETraditionalCommercialEconomy / Software Residential MortgageBrokerageBrokerageTravel/ TitleRE Media /PortalsPropertyMgmtSoftwareBroaderDataCredit /RE Data / RE Sharing Commercial Traditional ResidentialMortgage RE Software Economy / Brokerage Mortgage BrokerageMarketingTravel/ TitlePublic Real Estate Technology EcosystemCredit / MortgageMarketingPropertyManagementSoftwareBroader DataTraditionalMortgage / TitleRE Media / PortalsRE Data/ RE SoftwareCommercialBrokerageRE SharingEconomy / TravelResidentialBrokerage6.0x / 18.1x5.3x / 21.1x6.7x / 18.2x1.0x / 8.6x11.8x / 21.7x3.1x / 16.3x0.9x / 9.2x3.5x / 12.4x1.5x / 8.1x2019E Revenue / 2019E EBITDA MultipleSource: Capital IQ.Multiples represent median value of sector group.21
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APPENDIXSelected M&A Activity( MM)DateAnnouncedAcquirerTargetEV / 19NANANANANA5/3/2019 /17/2019NANANANANA4/3/2019NANANANANAProvider of an office space management platform and office management logistics.4/1/2019NANANANANAProvider of loan origination and servicing software systems for the residential real estate lending industry.3/26/2019NANANANANAProvider of an operational cost analytics platform for commercial real estate r of capital markets and brokerage services to owners of commercial real estate.3/7/2019 400NANANANAProvider of an online hotel booking platform offering low rates on last-minute bookings.3/5/2019NANANANANAOperator of a real estate appraisal firm that specializes in right-of-way appraisal and litigation.3/4/2019NANANANANAOperator of a luxury residential real estate company focusing on the San Francisco Bay Area.3/1/2019NANANANANAProvider of an online real estate brokerage offering low-cost home sales.6/4/20192019Enterprise EV / Revenue(Select Businesses)(1)Source: Capital IQ , Pitchbook and Company filings.(1) Per Skift report, 3/8/19.NTM Target DescriptionOnline multifamily marketplace service for student housing in the United Statesprovider of technology for tracking and engaging potential multifamily property residents and analyzingmarketing returns.Provider of advisory services, data management, partner management, application management and dataanalytics for the commercial real estate industry.The credit, flood, income and tax verification services, government services, REO management and disposition,online foreclosure auction and homeowners association (HOA) tracking units of Chronos Solutions.Provider of research, data and analytics to the commercial real estate industry in North America and Europe.Provider of ERP software and SaaS for the multifamily and commercial real estate sectors, providing featuresfor accounting, budgeting and forecasting, job costing, lease management, reporting and Web design.Online marketplace and SaaS platform supporting commercial real estate (“CRE”) brokers through propertymarketing, transaction management and business intelligence tools.Provider of cloud-based real estate and location data platforms serving more that 350,000 business andgovernment users.Provider of cloud-based operations management software that automates enterprise asset managementworkfl
Real Estate Data Licensing April 2019 Residential Real Estate Software / Transaction Management May 2019 Commercial Real Estate Software / Business Intelligence May 2019 Insurance Marketplace GCA is one of the most active advisors to the global proptech ecosystem, with four announced deals in 1H 2019 and 21 proptech deals globally in the past 3 .
