Kristjan Byfield, co-founder of end-of-tenancy platform The Depositary, has issued a stark critique of some proptech startups that label themselves as “disruptors”.
In an interview with AssistInventories, Byfield highlighted what he sees as the pitfalls many of these companies face due to their limited understanding of the complexities involved in property transactions.
Byfield noted that while the intention behind launching “disruptive” products in the property sector is often noble, too many companies are founded by individuals without a deep understanding of the technical, legislative and operational realities of the industry. He observed that these startups frequently enter the market with an anti-agent stance, aiming to offer what they believe consumers want, only to pivot later and end up selling their products to the very agents they initially criticised.
“Like for so many others, what does leave a bad taste in my mouth is to see these ‘disruptors’ launch, almost always with an anti-agent rhetoric about how bad, slow, old-fashioned and expensive we are,” he said, “only for them to fail and then pivot to a model where they then end up selling their product to ‘us bunch of jokers’.”
He added: “Thankfully, you are seeing more and more products being developed by those with detailed technical knowledge and frontline experience, and companies are learning to consult more often and earlier in their journey, leading to better products and offerings.”
Byfield, who is a member of both the Zoopla Lettings Advisory Board and The Lettings Industry Council, said: “Time and time again, we’ve seen products come to market claiming to be disruptors, only for them to fail because they don’t grasp the intricacies of the sector.” He further criticised these companies for focusing on disrupting price points without understanding the underlying operational costs, making their business models commercially unviable.
Byfield also shared his thoughts on the future of technology in the industry, predicting that artificial intelligence (AI) will play a dominant role in the years to come. He likened the current technological landscape to the beginning of the industrial revolution, forecasting a “seismic shift” in how technology will transform daily life and business operations.
“This technological revolution won’t be smooth and will take time to gain momentum,” he commented. “However, once it does, the changes will be dramatic and far-reaching, making many of our current methods obsolete. Companies that fail to adapt risk being left far behind.”
