AN INTRODUCTION TO PROPTECH IN December 2017 MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University WHAT IS INCLUDED?

AN INTRODUCTION TO PROPTECH IN CHINA

Section 1 Existing PropTech Market Facts in China

Chinese PropTech Unicorns • Who are they? Section 2 • What do they do? • Who is investing in them?

Section 3 Active Firms in China

Chinese PropTech Market Map & Up-and-Coming PropTech Firms Section 4 • Residential Sector • Commercial Sector

Section 5 8 Things You should Know about PropTech in China

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 2 ABOUT METAPROP NYC MetaProp is an and advisory firm based in NYC whose stated vision is to be the world's premier PropTech nexus.

INVEST MetaProp NYC's team and strategic seed stage funds have invested in 70+ technology companies across the full real estate value chain that have raised more than $2 billion and employ over 1,500 people globally

ACCELERATE The MetaProp NYC real estate technology accelerator at Columbia University is the leading growth program for early stage companies. Each year, up to twenty of the best PropTech start-ups are selected from more than 500 applicants to participate in 22 week and/or 8 week intensive programs based in the heart of Silicon Alley.

ADVISE MetaProp Advisors works with top global real estate organizations on outsourced corporate development; internal innovation, incubation and acceleration; market research; and next generation PropTech community engagement and events. MetaProp Advisors also offers a variety of PropTech digital advertising opportunities, as well as research, and event sponsorships to organizations looking to build their brands in the PropTech community. Notably, MetaProp Advisors produces the annual New York City Real Estate Tech Week and publishes the Global PropTech Confidence Index in partnership with the Royal Institution of Chartered Surveyors and the Real Estate Board of New York.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 2 CONTACT INFORMATION Leadership Team

Zach Aarons Aaron Block Zak Schwarzman Co-Founder & Co-Founder & Managing Partner Partner Director @zschwarz @ZacharyAarons @AaronNBlock

Clelia Peters Philip Russo Co-Founder & Partner Partner @pfrusso @cleliapeters

VISIT CONTACT ENGAGE st 18 W 21 St, [email protected] www.metaprop.org New York NY 10010 646.504.4482

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 2 ABOUT COLUMBIA UNIVERSITY’S CENTER FOR URBAN REAL ESTATE (CURE)

Columbia University’s Center for Urban Real Estate was founded in 2011 in order to address the challenges of a rapidly urbanizing world and the most complex problems of the real estate industry. The Center serves as a forum for robust discussions and rigorous analysis by real estate professionals and scholars.

A major current focus of the Center is the development of advanced applied technology that can be achieved by bridging the gap between the compelling needs of the real estate industry and the advanced research and resources in technology within the extensive Columbia University ecosystem.

As part of our commitment to advancing the real estate industry, the Center also contributes significantly to the curriculum of the graduate Real Estate Development program at Columbia. The Center hosts exciting, creative and forward-looking events that address the evolution of the industry as a whole, and very specifically, the application of advanced technology to achieving in the future a better built environment for all.

Patrice Derrington, Director People Josh Panknin, Associate Director

Website Center for Urban Real Estate

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 2 EXISTING CHINESE PROPTECH INDUSTRY MARKET FACTS

1. According to CB Insights, from 2013 – Q1 2017, China accounted for nearly 25% of global residential RE market of $162 trillion USD. Meanwhile, in terms of the number of deals, China was home to the 4th highest number of deals, accounting for 4% of the overall activity, behind U.S., U.K., and India.

2. Funding in RE tech in China increased significantly from $12M in 2013 to $987M in 2016.

Source: CBInsights MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 3 EXISTING CHINESE PROPTECH INDUSTRY MARKET FACTS

3. From 2013 – Q1 2017, compared to India, China had 1/3 of deal activities in RE tech, but had attracted 13 times as much as the total capital.

Of the top 3 most well-funded RE tech 4. companies globally, two are Chinese. The most well-funded company, Homelink, attracted 3 times as much investment as the runner up, Opendoor.

Source: CBInsights MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 4 Meet the Chinese Unicorns

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 5 CHINA UNICORN RANKING AS OF JUNE 2017* 102 Chinese Unicorns Worth $435 Billion (China Money Network) Valuation Ranking Company Headquarters Industry (US$B) 1 Ant Financial 70 Hangzhou Financial Services 2 Didi Chuxing 50 Beijing Auto & Transportation 3 Inc 46 Beijing Industrial & Manufacturing 4 Meituan-Dianping 30 Beijing Retail & Consumer 5 Toutiao 20 Beijing Media & Entertainment 6 Lufax 18.5 Shanghai Financial Services 7 DJI 10 Industrial & Manufacturing 8 Music 10 Shenzhen Media & Entertainment 9 Koubei 8 Hangzhou Retail & Consumer 10 Cainiao Network 7.3 Hangzhou Auto & Transportation 11 Jiedaibao 7.3 Beijing Financial Services 12 JD Finance 7.3 Beijing Financial Services 13 Ele.me 6 Shanghai Agriculture & Food 14 Lianjia 6 Beijing Real Estate & Construction 15 WeBank 5.5 Shenzhen Financial Services 16 Trendy International Group 5 Guangzhou Retail & Consumer 17 United Imaging Healthcare 5 Shanghai Pharmaceutical & Healthcare 18 iQiyi 4.5 Beijing Media & Entertainment 19 Meizu 4.4 Zhuhai Industrial & Manufacturing 20 BAIC BJEV 4.2 Beijing Auto & Transportation 21 UBtech Robotics 4 Shenzhen Internet & IT 22 Shouqi Car Rental 3.55 Beijing Auto & Transportation Source: *China Money Network (CB Insights includes only a portion of the Chinese unicorns in China Money Network’s ranking)

• According to China Money Network, as of June 2017, there are 102 unicorns in China with aggregate valuation of US $435 billion. • There are 8 decacorns dominating the top 10 spots. • If the Chinese unicorns were an independent nation, they would form the world’s 26th largest economy. • According to BCG, the combined market cap of the Chinese unicorns will soon overtake their US counterparts.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 6 CHINESE UNICORNS Located in 1st tier Cities & Dominated by FinTech, Sharing Econ & E-commerce

Chinese Unicorns: Chinese Unicorns: Industry Analysis Headerquarter Location Chongqing 1 20 18 HongKong 18 16 16 15 2 16 14 12 Tianjin Others 11 12 2 10 8 8 8 6 4 3 3 Beijing 4 Hangzhou 1 1 1 12 44 2 0 Shenzhen 10

Shanghai 24

Source: China Money Network

• In terms of industry, financial services, mobile internet, O2O, e-commerce and AI are sectors giving birth to the most unicorns, accounting for 65% of the total number of the companies.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 7 Meet the Chinese PropTech Unicorns

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 8 CHINESE PROPTECH UNICORNS 8 Companies & $17 B in Total Valuation PropTech Unicorns in China (2017)

Value Company Sector Chinese Unicorns: Industry Valuation (US (US$B) $B) RE brokerage $135 Lianjia 6 $140 marketplace $120 Home furnishing e- $100 $86 Jia 3 commerce $80 $68 $52 $60 $43 Interior design Tubatu 2 $40 $22 consulting $17 $12 $20 $6 $3 $3 $2 $1 Tujia 1.5 Vacation rental $- UrWork 1.3 Co-working RE brokerage Iwjw 1.25 marketplace

RE brokerage Fangdd 1 Marketplace

Mofang Rental apartment 1 Apartment operator

Source: China Money Network

• Among the unicorns, real estate sector is giving birth to 8 companies and $17 billion in value, representing 3.8% of the aggregate valuation. • The PropTech unicorns include three RE brokerage marketplace, a WeWork in China (UrWork), an in China (Tujia), two home décor marketplace, and a rental apartment operator.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 9 CHINESE PROPTECH UNICORNS Keywords: Residential RE, Marketplace, Serial entrepreneurs, Well-Known VCs

Last Value Total Funds Time Rank Company Sector Headquarter Financing Key Investors (US$B) Raised Founded Round

RE brokerage Huasheng, Baidu, 14 Lianjia 6 Beijing $1.3B 2001 17-Jan marketplace Tencent, Home furnishing Oriza, GF Xinde, 26 Jia 3 Shanghai $172M 2005 15-Feb e-commerce CDH, Baidu Interior design Matrix, Sequoia, 46 Tubatu 2 Shenzhen $216M 2008 15-Mar consulting 58.com GGV, Ctrip, CDH, 95 Tujia 1.5 Vacation rental Beijing $764M 2011 17-Oct Lightspeed, All-Stars Sequoia, ZhenFund, 61 UrWork 1.3 Co-working Beijing $314M 2015 17-Jan Tianhong, BJ Capital RE brokerage GGV, Morningside, 64 Iwjw 1.25 Shanghai $305M 2014 15-Nov Marketplace Temasek, Banyan RE brokerage CDH, FountainVest, 78 Fangdd 1 Shenzhen $313M 2011 15-Sep Marketplace Lightspeed Mofang Rental apartment Warburg Pincus, 89 1 Shanghai $560M 2010 16-Apr Apartment operator AICC

Source: ITJuzi.com; EverVC.com; Crunchbase

• 6 out of 8 PropTech unicorns are in residential real estate sectors. • 3 out of 8 PropTech unicorns are RE brokerage marketplace – one headquartered in BJ, SH, and SZ each. • Most PropTech unicorns are founded by serial entrepreneurs (UrWork, lwjw, Tujia etc.). • Most active VCs: Sequoia, GGV, Matrix, Lightspeed (international) & CDH, Baidu, Tencent (local).

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 10 CHINESE COUNTERPART OF PROPTECH GAINTS

US PROPTECH COMPANY CHINESE COUNTERPART

Zillow Lianjia (Homelink)

Airbnb Tujia

WeWork Urwork

WeLive Mofang Apartment

LoopNet Uban

Will there be a “Opendoor”, “Compass”, and “Cadre” in China in the future?

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 11 CASE STUDY: UrWork vs WeWork Company Character & Future Strategy

Company UrWork

Year of 2015 2010 Incorporation

Headquarter Beijing New York

Total Financing $343.72 M in 5 rounds $8.85 B in 12 rounds

Latest Financing Series C (2017/08) Series G (2017/08) Round (Date) ZhenFund, , Sinovation, T.Rowe Price, Benchmark Capital, Key Investors Dahong Group, Ant Financial Softbank Group, Goldman Sachs

Valuation (2017) $1.3 B USD $20 B USD

25 global cities 53 cities in 17 countries (3 in China) Current 88 co-working spaces 225 co-working spaces (11 in China) Performance 30,000+ members 150,000+ members worldwide

Sharing the Chinese co-working pie: Going International: SoftBank made an investment of $4.4B, UrWork have accelerated their including $3 B in WeWork’s core operation and expansion into international markets. Future Strategy $1.4B on WeWork companies in China, Japan, UrWork opened its first US site in LA South Korea, and SE Asia. In July, WeWork and hopes to launch in NYC and launched a Chinese unit to expand beyond London. Beijing, Shanghai, and Hong Kong.

Source: Crunchbase; South China Morning Post

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 12 CASE STUDY: Tujia vs Airbnb Company Character & Future Strategy

Tujia Year of 2011 2008 Incorporation

Headquarter Beijing San Francisco

Total Financing $764M in 4 rounds $3.4B in 10 rounds

Latest Financing Series E (2017/10) Series F (2017/03) Round (Date) General Catalyst Partners, Andreessen Horowitz, Key Investors GGV Capital, QiMing Venture, Ctrip, Lightspeed ENIAC Ventures

Valuation (2017) $1.5 B USD $29B USD

Entered Chinese market in 2015 430,000 listings in China Current 80,000 listings in China 20,000 outside China Performance 3M listings outside China Broader range of services, e.g. cleaning Mostly in first-tier cities and Hong Kong Hands-on model: Acting local but US business model: • Works with real estate developers, agents, • New concept of guided tours and local and owners to manage their properties. experiences. • Contracts local service providers for • Signed deals with governments to promote Future Strategy utilities, laundry, cleaning etc. tourism • Comply with regulations: a guest can hold • Still uses email as ways of communication up an ID card and take a selfie to check in. while Chinese prefers phone calls and • Connect with property owners and WeChat. expansion beyond major cities. • Lack of close interaction with the government. Source: Crunchbase; CNN; Tech in Asia MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 13 Who is Investing in China’s Startups?

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 14 WHO IS INVESTING?

Chinese Internet Giant Trio (“BAT”) • Baidu (Chinese search engine), Alibaba (e-commerce 1. company), and Tencent (media & entertainment company, e.g. QQ, Wechat)

International Renowned VCs 2. • Sequoia, IDG, Matrix, GGV

Domestic Top VCs 3. • ZhenFund, Sinovation, K2VC, Qiming Venture

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 15 WHAT ARE CHINA’S INTERNET GIANT TRIO INVESTING IN? Sticking with What They are Good at

Founded Total Selected Investor Key Invested Industry Key Personnel in Investments* (based on No. of Investments) Investments

Internet & IT; Tony Yip Baidu Media & Entertainment; Homelink; iQiyi; Uber 2000 110 (Ex-banker; Investment Auto & Transportation; China; edaixi Goldman) Education

Shihuang Xie E-commerce; Didi; Ele.me; Magic (Co-founder of Alibaba Media & Entertainment; Leap; Ucar; Youku; Alibaba) 2008 214 Capital Logistics; Lazada Group; Internet & IT YCloset Feiyan Zhang (Deloitte; Tuck MBA)

Gaming; Zhaohui Li Tencent Media & Entertainment; Didi; Dianping, (; Beijing U; Corporate E-commerce; 58.com; Homelink; Duke MBA) 2011 439 Venture Pharmaceutical & ofo; Douyu; Capital Healthcare; China Internet Plus Shaohui Chen Auto & Transportation (Monitor; Goldman)

* Total No. of Investment including different rounds of investments on the same firm. Source: ITJuzi.com; EverVC.com

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 16 MOST ACTIVE INTERNATIONAL VCs IN CHINA Investing in the Most Popular and High Demand Industries

Founded in Total Key Invested Selected Investor (or Enter Investments* Key Personnel Industries Investments China) /China Fund Size (based on No. of Investments)

Internet & IT; Neil Shen 547 E-commerce; Alibaba; (Ex-banker; Yale MBA) Sequoia Financial Services; Jingdong; DJI; 2005 Kui Zhou (Tech investments; Capital Pharmaceutical & Toutiao; Meituan; Tsinghua MBA) ¥5B RMB Healthcare; ofo Steven Ji $3B USD Clean Energy

674 E-commerce; Ctrip; Baidu; Quan Zhou IDG Internet & IT; SouFun; (Ex-NASA; PhD) 1992 Capital ¥20B RMB Financial Services; Meitu; Homeinn; Xiaohe Xiong (IT Investments; $4B USD Media & Entertainment Tudou Harvard MBA) Internet & IT; Ying Zhang 545 E-Commerce; Matrix Didi; Liepin; (Northwest Biology Master; Ex- Media & Partners 2008 Ele.me; To8To; Banker) Entertainment; China ofo; Momo Yibo Shao ¥20B RMB Pharmaceutical & (Harvard BSc & MBA; BCG) Healthcare

176 Internet & IT; Alibaba; C-trip; Jixun Foo GGV E-commerce; Didi; Tujia; lwjw; (Singaporean; Ex-banker) 2005 Capital Education; Little Red Book, Jenny Lee (Ex-banker & Unknown Gaming Qutar engineer; Kellogg MBA)

* Total No. of Investment including different rounds of investments on the same firm. Source: ITJuzi.com; EverVC.com MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 17 MOST ACTIVE DOMESTIC VCs Investing in Industries that are consistent with Key Personnel’s Background Total Founded Key Invested Industries Investor Investments*/ Selected Investments Key Personnel in (based on No. of Investments) Fund Size

420 E-commerce; Xiaoping Xu (Co-founder of Internet & IT (big data & Jumei; UrWork; ofo; 51 New Oriental; Beijing U) ZhenFund 2006 AI); Talk; Jiayuan; VIPKID; Qiang Wang (Co-founder of Media & Entertainment; ehang New Oriental; Beijing U; SUNY $300M USD ** Education Master)

Kaifu Li (Google China CEO; 355 Gaming; ofo; Zhihu; Face++; Columbia Bsc; PhD in CS from Media & Entertainment; Sinovation 2009 Meitu; LeTV; Dorabot; CMU) E-Commerce; baozou Hua Wang (Google China; ¥400M RMB Internet & IT (AI) $180M USD Stanford MBA)

Keqi Chen (Investment; 312 E-commerce; Jumei; zhaogang; Beijing U; Mountaineer) Financial Services; K2VC 2010 mydream+; Lepu; Moji; Fan Bao (Morgan Stanley; Auto & Transportation; Tiger Brokers Credit Suisse; Norwegian Media & Entertainment ¥1B RMB School of Mgnt)

243 Pharmaceutical & Qiming Healthcare; Xiaomi; Dianping; JP Gan (, Cisco) Venture 2006 Internet & IT (big data); Meitu; Mogujie; Gary Rieschel (Cisco Senior Partners ¥2.7B RMB Media & Entertainment; TigerMed; Face++ mgnt) $2.7B USD E-Commerce

* Total No. of Investment including different rounds of investments on the same firm. ** Based on public information. Source: ITJuzi.com; EverVC.com MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 18 SUMMARY ON MOST ACTIVE VCs IN CHINA

BAT mainly sticks with their roots – Baidu (Internet & IT), 1 Alibaba (E-commerce), Tencent (Gaming, Media & Entertainment). They like to invest in post-angel rounds.

International VCs mainly invest in industries that are most popular in China at the time – from e-commerce, media & 2 entertainment (a few years ago) to financial services and Pharmaceutical & Healthcare. They like to invest in A or B series.

Domestic top VCs mainly invest in the industries in which their 3 key personnel’s have experience in and knowledge of. They like to invest in seed or angel rounds.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 19 Who are the Active Investors in PropTech in China?

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 20 WHICH VCs ARE ACTIVE IN PROPTECH IN CHINA? Most Firms Have Invested in Co-working and Online Marketplace

Total No. of Founded in Selected Investor Headquarter Fund Size Investment* (or Enter China) PropTech Firms

Matrix Partners Homelink; To8to; Anjuke; 22 2008 Beijing ¥20B RMB China HotelGG; Lepu ¥20B RMB Soufang; Mogo Room; IDG Capital 18 1992 Beijing $4B USD krspace; Youzi; Simplywork ¥2B RMB lwjw; Uban; Hinabian; Shunwei Capital 16 2011 Beijing $1.75B USD ikongjian; yuapt; YOU+ Morningside lwjw; shengong007; 13 1986 Shanghai $1.5B USD Ventures xiaozhu Goufang; NCNES; Lepu; K2VC 13 2010 Beijing ¥5B RMB Jianfanjia; Mydream+ ¥400M RMB Urwork; Yiao; Homeserve; Sinovation 9 2009 Beijing $180M USD Zhufaner ¥5B RMB Xiaozhu; Yaduo Hotel; Legend Capital 8 2001 Beijing $2B USD uoko; podinn; ¥6B RMB SAIF Partners 7 2001 Hong Kong Jiwu; qk365; Orvibo $4B USD

* Total No. of Investment including different rounds of investments on the same firm; Source: ITJuzi.com; EverVC.com; crunchbase

• Most of the active VCs in PropTech have invested in co-working and O2O marketplace. • Other popular sub-categories are mainly in home decoration, short rental, and apartment operators.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 21 PropTech in China Market Map

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 22 RESIDENTIAL PROPTECH MARKET MAP Selected VC-Funded Startups (Startups Receiving Financing Since 2015)

* Selected startups receiving financing since 2015

Source: ITJuzi.com; EverVC.com

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 23 COMMERCIAL PROPTECH MARKET MAP Selected VC-Funded Startups (Startups Receiving Financing Since 2015)

* Selected startups receiving financing since 2015

Source: ITJuzi.com; EverVC.com

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 24 MOST SATURATED SECTORS IN CHINESE PROPTECH

Residential Home Décor Listing & Search Renting & Leasing Shared Housing & Marketplace O-2-O O-2-O Apartment Operator

Commercial Renting & Leasing Co-working Hotel & Short Rental O-2-O Marketplace

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 25 LEAST SATURATED SECTORS IN CHINESE PROPTECH

Residential Data, Valuation & Crowd-funding Marketing RE VR Tech Analytics

Commercial Mortgage & Lending Data, Valuation & Property Crowd-funding Analytics Management

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 26 Meet the Up-and-Coming PropTech Firms in China

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 27 TOP 10 UP-AND-COMING PROPTECH FIRMS (2016 – 2017 Aug) Keywords: Commercial RE, Marketplace, Apt Operators, Short Rental

Total Fund Last Latest No. Company Sector Description Raised Financing Financing (in $M) Round Date Qfang Listing & Search Residential $550.00 Acquired 1/2017 1 Q房网 Services Xiaozhu Hotels & Short Rental 2 Commercial $270.00 Series E 11/2017 小猪短租 Marketplace Haowu.com Listing & Search 3 Residential $156.00 Acquired 9/2016 好屋中国 Services Atour 4 Commercial Hotels & Short Rental $135.00 Series C 12/2016 亚朵 Haozu Renting & Leasing 5 Residential $133.33 Series B+ 2/2017 好租 Marketplace axhome Shared Housing & 6 Commercial $106.52 Series B+ 5/2017 安心公寓 Apartment Operator Mogo Room Shared Housing & 7 Commercial $88.33 Series C 3/2017 蘑菇公寓 Apartment Operator AMTT Group Data, valuation & 8 Commercial $83.48 Series E 10/2016 安美数字 Analytics Krspace Commercial Co-working $80.30 Series B 9/2017 9 氪空间 58 Fangdai 10 Commercial Mortgage & Lending $75.50 Series E 8/2017 房司令 Source: ITJuzi.com; EverVC.com MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 28 WHAT ARE THE INVESTMENT TRENDS?

1. Consolidation of residential listing & search services.

Popularity among asset-based PropTech. 2. E.g. co-working, hotel, and shared housing & apartment operator.

3. Increasing investment in commercial real estate sector.

Emergence of PropTech companies in data, valuation & 4. analytics and mortgage & lending.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 29 Summary of PropTech in China

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 30 IN SUMMARY – 8 THINGS YOU SHOULD KNOW 1 HOW BIG IS THE OPPORTUNITY? HOW MANY PROPTECH UNICORNS IN 2 China has ~25% of the global residential real CHINA? estate market value. Meanwhile, from 2013 – Until June 2017, real estate sector has 8 out of 102 th Q1 2017, China was only home to 4 most Chinese unicorns with $17 billion in value, representing number of deals in the world, accounting for 4% 3.8% of the aggregate Chinese unicorn valuation. of total deal share (CB Insights). WHAT ARE COMMON AMONG HOW ARE PROPTECH FIRMS DIFFERENT 3 PROPTECH UNICORNS? 4 FROM THEIR US COUNTERPART? Most of the PropTech unicorns are in residential Although Chinese PropTech unicorns seem to have sector. 3 of 8 unicorns are RE brokerage similar business models as their US counterparts, they marketplace. have all adopted domestic approach to grow business, e.g. Tujia. WHAT ARE THE MOST HIGHLY WHICH SECTORS WITHIN PROPTECH 5 INVESTED SECTORS IN PROPTECH 6 HAVE BIGGEST POTENTIAL GROWTH? IN CHINA NOW? Sectors that have not been well represented: In the recent 2 years, the top 10 most well- • Residential: data, valuation & analytics, crowd funded PropTech firms are mostly in the funding, VR tech, and marketing. commercial sector, especially in co-working, • Commercial: mortgage & lending, data, valuation & shared housing & apartment operator, and analytics, property management, & crowd marketplace. financing. WHAT DO TOP VCs LIKE TO INVEST WHAT ARE COMMON AMONG VCs WHO 7 IN PROPTECH IN CHINA? 8 INVEST IN PROPTECH IN CHINA? Most of the top VCs in China who have invested Most active VCs in PropTech either have deep in PropTech are likely to have invested in co- government ties or have funds originated from past working and online marketplace platforms. successful real estate developments.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University | 31 Thank You.

For further question, please contact: MetaProp NYC Aaron Block: [email protected] Leila Collins: [email protected]

The Center for Urban Real Estate, GSAPP Columbia University Patrice Derrington: [email protected] Josh Panknin: [email protected] Alice Guo: [email protected]

The author of the report is Alice Guo, a student at Columbia’s MSRED Program and a Venture Fellow at MetaProp, with special thank you to Patrice Derrington, Aaron Block, Leila Collins, Deedee Chong, Xinyi Wang, and Yilu Zou.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University APPENDIX

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University Lianjia (Homelink) 链家

Company The largest real estate brokerage firm in China, with more than 6,000 branches and Description: 120,000 employees nationwide. It is building an O2O platform to provide an extensive range of services in real estate, including helping clients sell, buy, rent properties within China and internationally. Funding Valuation: $6B (2017) Keywords: Status: Total Funding: $1.3B in 3 rounds #Residential RE #O2O Series A – Undisclosed #Brokerage Series B ($926M) – Huasheng Capital, Tencent, Baidu, #Listing & Search Source Code Capital, Hillhouse Capital & Matric Partners #Renting (04/2016) Location: Series C ($375M) – Sunac China Holdings Ltd. (01/2017) Beijing, China

Core Team: Mr. Ma Hui, 46 (Founder & CEO) Time of Incorporation: CS major; worked as software sales 2001

Comments: Ranked No. 14 among 2017 China’s Unicorns Website: One of the largest home sales and rentals platforms in China https://www.lianjia.com/ Baidu and Tencent are Series B Investors Series C from Hong Kong-based developer Sunac

Source: ITJuzi.com; EverVC.com

• Lianjia claims to have a 7% market share in China’s O2O real estate services market. • China’s 2nd largest property developer, , has agreed to invest $440M in Apr 2017. • Lianjia has IPO agenda with Series B investors. If the company fails to complete an IPO by 2021, investors can demand the company buy back its shares at an annualized rate of 8%.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University Jia.com 齐家网

Company A provider of an online platform to purchase home furnishing. Launched in March Description: 2005, Jia.com was originated by Qijia Information Tech Co. Ltd. and the core business include decorations, building materials, furniture, appliances etc.

Funding Valuation: $3B (2017) Keywords: Status: Total Funding: $172M in 4 rounds #Interior Design Series A ($2M) – Oriza Holdings (01/2007) #O2O Series B ($10M) – GF Xinde Investment (11/2008) #Home Décor Series C (Undisclosed) – Baidu, CDH Investments (12/2010) #E-commerce Series D ($160M) – Undisclosed (03/2015) Location: Shanghai, China

Core Team: Mr. Deng Huajin (Found & CEO) Time of Previous VP in Philips China which manufactures lighting Incorporation: electronic products 2005

Comments: Ranked No. 25 among 2017 China’s Unicorns Website: The largest online platform for online home furnishing purchase http://www.jia.com/ Baidu invested in Series C, while most other investors are VCs

Source: ITJuzi.com; EverVC.com

• One of the largest furnishing e-commerce providers with a huge customer base. • As of April 2015, it provided services in 50 cities in China, with 40,000 suppliers and more than 9 million registered users.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University Tubatu (To8to) 土巴兔

Company To8to provides services for users to find contractors to renovate and decorate their Description: apartments. It acts as a disruptor in the home décor market, as it increases the transparency of the construction and brings together over 70,000 decoration companies and 950,000 designers from 80 cities in China in an integrated platform from which consumers can choose from. Funding Valuation: $2B (2017) Keywords: Status: Total Funding: $216M in 4 rounds #Residential RE #O2O Seed (Undisclosed) – Matrix Partners (06/2011) #Interior design #B2C Series A (Undisclosed) – Matrix Partners (06/2013) #Home décor #Consulting Series B ($16M) – Sequoia Capital, Matrix Partners Location: (02/2014) Shenzhen, China Series C ($200M) – Sequoia Capital, 58.com, Matrix Partners (03/2015) Core Team: Mr. Wang Guobin (Founder & CEO) Time of Incorporation: Serial startup founder; Top 35 under 35 by iheima.com in 2008 2016 Comments: Ranked No. 41 among 2017 China’s Unicorns Website: From the customer’s perspective, To8to simplifies the home http://www.to8to.com/ decoration process to 3 steps: choose the best option, check

the finished project and pay for services Source: ITJuzi.com; EverVC.com

• In 2012, To8to launched decoration . To8to acts as a trust and monitors 100% construction fee and fee schedule that regulates the relationship btw the home owner & the home décor companies. • In 2015, To8to added a new feature – B2C e-commerce of home décor. It has intermediate transition warehouses in 7 cities that streamline the factory-to-customer logistics process. MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University Tujia 途家 Company Tujia.com is an online vacation rental services provider in China targeting middle to Description: high-end Chinese travelers. Tujia manages the properties listed on their website and works with Chinese real estate developers to rent out unsold inventory. Tujia also operates in Southeast Asia, with presence in Singapore, Taiwan, Japan, and South Korea. Funding Valuation: $1.5 B (2017) Keywords: Status: Total Funding: $764MM in 5 rounds #Commercial RE Series A ($15M) – Lightspeed, CDH Investment, Ctrip, #Short Term Rental HomeAway (05/2012) #Hotel #Airbnb in China Series B ($49M) – GGV Capital, Lightspeed, China #Marketplace Broadband, CDH, Ctrip, Homeaway, Qiming VP(02/2013) Location: Series C ($100M) – Same as above (06/2014) Beijing, China Series D ($300M) – All-Stars Investment, The Ascott, Ctrip (06/2015) Series E ($300M) – All-Stars Investment, Ctrip, Glade Brook, G Street Capital (10/2017) Core Team: Mr. Luo Jun (Founder & CEO): Time of Incorporation: Former senior management at Ehouse, Sina Property, Cisco, 2011 Oracle, Avaya; accounting major Comments: Ranked No. 51 among 2017 China’s Unicorns Website: It became a unicorn since 2015 https://www.tujia.com/ Source: ITJuzi.com; EverVC.com • Tujia is known as the China’s Airbnb, it offers 430,000 homes in over 300 cities. • Unlike Airbnb’s model, which connects homeowners with travellers, Tujia also helps developers rent out vacant properties – taking advantage of China’s property glut. • In 2016, Tujia acquired homestay business of Ctrip and Qunar, two of the largest travel websites in China. MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University UrWork 优客工场

Company UrWork is a Chinese co-working space platform that offers integrated multi-functional Description: services and modern office facilities. UrWork operates 78 co-working spaces in 20 major cities across China, as well as Hong Kong, Taiwan, Singapore, New York, and London.

Funding Valuation: $1.3B (2017) Keywords: Status: Total Funding: $314M in 5 rounds #Commercial RE Seed –Series A – ZhenFund, Sequoia Capital, Sinovation #Co-working Ventures (04/2015) #WeWork in China Series A+ ($31M) – Gopher Asset Mgnt (03/2016) Series A ($46M) – Zhongrong International, Yintai Land Location: (06/2016) Beijing, China Series B ($58M) – Tianhong Asset, Sinovation, Sequoia, ZhenFund, Chuanghehui Fund, Tianming, Dahong, Junfa (01/2017) Series C ($179M) – Beijing Capital Land, Beijing Xingpai Group, Aikang Group (07/2017) Core Team: Mr. Mao Daqing (Founder & CEO) Time of Incorporation: Former VP of Vanke 2015 Comments: Ranked No. 56 among 2017 China’s Unicorns Website: To name a few tenants, Amazon China, ofo (bike-sharing & https://www.urwork.cn/ unicorn), Toutiao (unicorn) Source: ITJuzi.com; EverVC.com

• Established with the joints of investors including ZhenFund, Sequoia, and Sinovation. • The annual Revenue is around $58.5M – 75% from space rental & 25% from other value-added services • It just completed a $179M pre-C financing to increase presence to 160 co-working locations in 32 cities globally within three years.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University Aiwujiwu 爱屋吉屋

Company Aiwujiwu is a rental and second-hand home listing portal which can functions as a Description: virtual agent. The site allows for easy location-based visualization and searches and many of its listings include video tours. It charges a 1% commission for home sales and a portion of rental fee from landlords and the tenants. Funding Valuation: $1.25B (2017) Keywords: Status: Total Funding: $305M in 5 rounds #Residential RE #O2O Series A (Undisclosed) – MorningSide Ventures (06/2014) #Listing & Search Series B (Undisclosed) – Banyan Fund, MorningSide #Rental #Brokerage (09/2014) Location: Series C ($35M) – GGV Capital, Shunwei Capital, Banyan, Shanghai, China MorningSide (12/2014) Series D ($120M) – GGV Capital, MorningSide, Banyan, Shunwei (05/2015) Series E ($150M) – Temasek Holdings, Hillhouse Capital, (11/2015) Core Team: Mr. Li Yongjin & Ms. Deng Wei (Co-founders) Time of Incorporation: Former execs from Tudou.com and Dahuangfeng 2014 Comments: Ranked No. 58 among 2017 China’s Unicorns Website: 5 rounds of financing raised within 1.5 years http://www.iwjw.com/

Source: ITJuzi.com; EverVC.com

• Unlike other companies, Aiwujiwu initially operated no offline stores. Instead, users book viewing appointments via the website or app. • China’s online real estate market is crowded and the competition is fierce. Aiwujiwu’s advantage? A site that is more aesthetic than many competitors, and some unique features such as video tours.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University FangDD 房多多

Company FangDD is the an O2O real estate platform in China. It facilitates transactions Description: between property sellers and home buyers through real estate brokers. It is currently working with over 100,00+ brokers, has office in more than 50 cities and employs around 3,000 people.

Funding Valuation: $1B (2017) Keywords: Status: Total Funding: $313M in 4 rounds #Residential RE #O2O Seed ($2M) – Decent Capital (06/2012) #Brokerage Series A ($8M) – CDH Investment (07/2013) #Listing & Search Series B ($80M) – Lightspeed China Partners, CDH Investments, Vision Knight Capital (07/2014) Location: Series C ($223M) – Fountainvest Partners (09/2015) Shenzhen,China

Core Team: Mr. Duan Yi & Mr. Zeng Xi (Co-founders) Time of Incorporation: Real estate background; serial startup founders 2011

Comments: Ranked No. 71 among 2017 China’s Unicorns Website: CTO was a previous product manager at Tencent http://www.fangdd.com One partner was a key personnel at Vanke

Source: ITJuzi.com; EverVC.com

• Since 2015, Fangdd has partnered with Ganji.com, a domestic classified website with 300M+ users every month. Fangdd puts all of its new housing resources on Ganji.com. • FangDD has a "pay-for-performance" business model instead of charging fees for every listing like other online estate services (SouFun, Anjuke) that charge customers for listing property information on the platform.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University Mofang Gongyu 魔方公寓

Company One of the largest institutional rental apartment operators in China. The company rents Description: its apartments to white collar, college educated residents with an attractive average monthly income and provides value-added services. Mofang currently operates over 150 apartments complexes in major Chinese cities, such as Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, Wuhan, Suzhou, Hangzhou, Chengdu, and Xi’an. Funding Valuation: $1B (2017) Keywords: Status: Total Funding: $560M in 4 rounds #Residential RE #O2O Series A – DT Capital Partners #Rental Apartment Series A+ ($60M) – Warburg Pincus (01/2013) #Property Management Series B ($200M) – Warburg Pincus (05/2015) Location: Series C ($300M) – Aviation Industry Corporation of Shanghai, China China (04/2016) Core Team: Mr. Ge Lan (Founder) Time of Incorporation: Ms. Liu Jia (CEO) 2010

Ranked No. 82 among 2017 China’s Unicorns Website: Comments: Most recently Series C funding raised $300 M in 2016/04 http://www.52mf.com.cn/ from the state-owned AICC It became a unicorn in 2016 Source: ITJuzi.com; EverVC.com

• One of the largest rental apartment operators and franchises in China. • The long-term apartment leasing demand will continue to expand in tier 1 and tier 2 cities given the buyer restriction policies in major cities like Shanghai, Nanjing, and Shenzhen.

MetaProp NYC in collaboration with The Center for Urban Real Estate, Columbia University