Real estate is the world’s biggest asset class, with a projected value of $613.60 trillion in 2023. However, this market is also known for being notoriously behind in digitalisation, with organizations still relying on Excel and email.
This presents a challenge for the industry, yet it also offers numerous opportunities for founders in proptech. 2021 was a record year for European proptech companies, with venture capitalists investing €3.8 billion in the market, representing a 350% increase compared to 2020. According to the VC platform Proptech Capital, founders have been providing services across the categories of ‘search’ (such as brokerage services, marketplaces, data and analytics, and virtual viewing tools), ‘supervise’ (encompassing management, operations, and smart buildings), and ‘sell’ (which includes trading, investing, and mortgages).
We sat down with Emmanuel Vershoosel, CEO of Square Sense, a Paris-based proptech startup that recently raised a €3.5 million round from its management, family offices, and real estate partners. Square Sense is focused on the digital transformation of commercial real estate and smart cities, specialising in collecting and analysing building data. They utilise this data to enhance financial performance, promote environmental sustainability, and elevate tenant satisfaction across portfolios.
You have extensive banking and real estate experience. What got you into entrepreneurship?
After three decades in investment banking and real estate, I observed significant challenges in the built environment. Decarbonisation, new ways of living and working and the well-being of habitants are forcing this industry to change and to adopt new strategies. For this, data is required. There is currently a noticeable data deficiency – it’s fragmented, unreliable, and often missing- and a gap to be filled, even more, when looking at how it progresses in other sectors. What struck me was that these necessary changes would predominantly originate from innovative startups with fresh perspectives and problem-solving approaches, rather than traditional real estate players. Recognizing the importance of this shift (which I had seen with FinTech during my previous roles), I made the transition to venture capital investment and entrepreneurship to actively support and accelerate this transformative process.
What differentiates Square Sense from its competitors?
Square Sense is a proptech company leading the digital transformation of commercial real estate and smart cities. We specialize in the collection and analysis of building data, utilizing it to enhance financial performance, promote environmental sustainability, and elevate tenant satisfaction across portfolios. Our innovative Software as a Service (SaaS) platform fosters transparency among all stakeholders, from property owners and managers to tenants, enabling well-informed, data-driven decision-making.
This wealth of data provides real-time insights and facilitates long-term trend analysis. Furthermore, we go beyond traditional financial and consumption data by incorporating “occupancy” data, such as door sensors. This enables us to precisely model how buildings operate and adapt them to varying situations and needs. The result is a building that can communicate with its management and which can trigger changes, ultimately making itself “intelligent”.
What sets Square Sense apart from its competitors is our AI-driven foundation, which places innovation at the heart of our operations and data approach. We cover all facets of a building, benefiting not only owners but all stakeholders. Our tailored solutions are designed for a select clientele we deeply understand. Moreover, our robust, scalable, and proven solutions speak for themselves.
How do you measure your impact at Square Sense?
At Square Sense, enabling and measuring impact through an ESG perspective is at the core of our mission. Guided by a simple principle – “We can only improve what we measure,” as a data analytics company, we analyze consumption data before and after implementing actions and initiatives such as reducing air conditioning and central heating in areas not used (because it is Friday and people work at home, for example). Our key areas of focus include optimizing consumption for existing assets, enhancing the design of under-construction buildings, and establishing a robust data collection and reporting system. These efforts empower our clients to achieve the highest real estate labels.
Square Sense is based in Paris. What is your opinion on the environment for creating a proptech company there?
Paris is a very good environment for Square Sense’s growth. It offers direct access to key real estate clients, a thriving startup and innovation ecosystem, a strategic and central position for the European markets, strong government incentives for research and development, and robust banking support. We never had problems attracting talents for example. We are working in a co-working space with views all over Paris! It’s a good location for proptech companies like ours to thrive.
Which markets are most important for Square Sense and why?
At Square Sense, our international presence is currently focused on continental Europe and the UK. To meet the evolving needs of our global clients, we also entered the US and Asian markets, notably Japan, with our first assets in 2023. We will need to develop local teams to manage this expansion.
What are your predictions for the next 10 years when it comes to proptech transformation and its impact on our cities?
In the coming decade, we anticipate widespread adoption of data-driven strategies that will serve as a unifying force for various real estate stakeholders. This includes developers, public authorities, and architects, all converging on a common ground of data-driven decision-making. Proptech, known for its fresh and innovative perspective, is poised to be the catalyst for transformative change in an industry known for its traditionally slow pace of innovation.
