10 Reasons Why Most Real Estate Technology Companies will Fail
November 1, 2007 – 5:06 pmThis happens to go with any new start-up that tries to increase market share without having a strong foundation. By the way there are many more reasons why most companies fail but here are 10 of them.
- Trying to do everything for everyone
- Not having a clear monetization strategy
- Business model is similar to many competitors
- Market is too fragmented
- Not enough cash
- Not disruptive enough
- Not provocative enough
- Poor and inexperienced management team
- Lack of SEO knowledge
- Low barriers to entry
Some recent real estate and local related businesses that have failed are:
JudysBook - Received $10.5 million in VC Funding
BackFence - Received $3 million in VC Funding
These companies failed in part because of some of the reasons above.
2 Responses to “10 Reasons Why Most Real Estate Technology Companies will Fail”
Dan, good post. The same can be applied to our very own websites. Don’t try to be all things to all people.
By Christopher Smith on Nov 2, 2007