In episode 39 of Sh*t You Wish Your Building Did, we dive deep into the unvarnished realities of running a PropTech startup with Michael Grant, founder of Metrikus and co-creator of Smart Building Bootcamp.
Michael shares hard-earned insights from 6 years in the trenches, covering everything from the brutal truth about fundraising in 2025 to why partnerships in real estate are so much harder than other industries.
The Realities of Running a PropTech Startup
In this candid conversation, Michael Grant pulls back the curtain on what it’s really like to build and scale a PropTech startup. With six years of hard-earned experience at Metrikus, Michael shares the unvarnished truth about sales cycles, funding challenges, and what it takes to survive in the smart buildings industry.
Sales Cycle Challenges
The conversation dives deep into PropTech’s notoriously long sales cycles – often 12+ months – and why they happen:
- Business priorities constantly shift, with real estate and FM getting less attention
- Hardware requirements significantly extend deal timelines
- Budget allocation changes mid-project (Michael shares examples of £750k budgets being cut to £200k)
- Multiple stakeholder buy-in creates complexity
The solution? Software-only approaches using existing infrastructure like Wi-Fi can cut cycles from 12 months to 6 months when you find the right stakeholder with budget and requirements.
The Funding Reality in 2025
Michael provides stark insight into how dramatically the VC landscape has changed since the 2020-2021 “bubble”. See Memoori’s research on startups in H1 2025:
- Previously: Good story could secure funding without massive revenue
- Now: Must be cash flow positive or break-even to attract investment
- Recent acquisitions are often “paper transactions” rather than lucrative exits
- AI-focused companies are capturing the majority of available funding
Acquisition Market Insights
The discussion reveals the nuanced reality behind PropTech acquisitions:
- 60% increase in acquisition activity, but often for strategic rather than financial reasons
- Many acquisitions are low-value transactions to prevent customer service disruptions
- Strategic acquisitions by larger companies remain the best exit opportunity, but there are limited buyers
Founder Advice
For aspiring founders: “Think long and hard before pushing the button.” Michael emphasizes the importance of solving real problems rather than building solutions looking for problems, and warns about the industry’s battle-scarred landscape.
For early-stage companies: Focus on green shoots – customers who become true champions and partners. Customer success and building what people will actually pay for is crucial for scaling.
What Separates Winners from “Lifestyle Businesses”
Successful PropTech companies concentrate on core customers to drive ROI and create champions who become active advocates, essentially selling for the company to their peers.
The Massive Opportunity Ahead
Despite the challenges, Michael sees enormous potential in the industry:
- 600,000+ commercial buildings over 10,000 sq ft in the UK
- 6 million+ similar buildings in the US
- The key opportunity: bridging landlord and tenant relationships through better data sharing
- Industry success requires more partnership and collaboration rather than competition
Resources Mentioned
- Smart Buildings Boot Camp: smartbuildingbootcamp.com – Self-paced learning for smart building professionals
Key Takeaway
While PropTech presents significant challenges with long sales cycles, complex partnerships, and a changed funding environment, there remains massive opportunity for companies that focus on customer success, build true partnerships, and solve real problems with software-first approaches. The industry needs more collaboration and less competition to unlock its full potential.
About the Guest
Michael Grant is the founder of Metrikus, a workplace analytics platform focusing on occupancy monitoring and indoor air quality for tenant spaces. He is also the co-creator of Smart Building Bootcamp, a self-paced education platform for smart building industry professionals. With experience across multiple industries, including unified communications, Michael brings an outsider’s perspective to PropTech’s unique challenges.
