Find Real Estate Agents and Homes for Sale

Real Estate News --> Vermont News

Vermont storm knocks out power for 55,000 homes

Green Mountain Power and Vermont Electric Co-op are reporting widespread outages after an 80 mile an hour windstorm swept through the state last night. VEC reported that about 10,000 homes in its service area are without power. More than 45,000 homes and ...

Archived Story

In the last two months Michael Marks has turned down a dozen offers to make keynote speeches at conferencesHis company, construction startup Katerra, is three years old, but the attention surge is very recent“Construction technology has gotten kinda buzzy,” he says.That may beBut more likely, interest in Katerra has spiked because in January, the company landed an astounding $867 million in venture funding led by the SoftBank Vision FundA deal of that size, led by the venture industry’s most talked-about fund, will put a company on the map overnightMarks had been planning to raise around $500 million, but in a pattern that’s become familiar, once SoftBank got involved, everything got bigger.The SoftBank Vision Fund—a source of fascination and fear among rival venture investors—is known for its investments in cutting-edge technologyBut now it’s making a big bet on one of the stodgiest industries around—real estateThe $93 billion fund’s sheer firepower has the potential to shape winners and losers in any market it decides to enter, and it is quickly doing so in real estateThe fund has met with at least 50 potential investments in the category, according to managing director Jeffrey HousenboldThat’s resulted in four big bets, with more to come.A month before the Katerra deal, SoftBank led a $450 million investment in startup real-estate brokerage Compass, and a $120 million investment in home-insurance startup LemonadeIn August 2017, the fund invested $4.4 billion in coworking giant WeWork.SoftBank is holding deal talks with OpenDoor, a startup which buys homes directly from owners and sells them, according to sources familiar with the situationFounded in 2013, OpenDoor is now buying more than $1 billion worth of homes per yearSoftBank would not comment on potential investmentsOpenDoor declined to comment.At first blush, real estate technology doesn’t seem to fit Son’s stated thesis of a future dominated by artificial intelligence, robots, and big dataBut the fund’s reach extends beyond the singularityThat’s by necessity—$93 billion is a lot of money to put to work in AI or robotics companies.Housenbold tells WIRED the Vision Fund’s mandate also includes aspects of human needs or desires that won’t be replaced or destroyed by technologyEven when robots and AI are a prominent part of our lives, he says, “we will still need to eat and have a roof over our heads; we will still have a desire to learn, travel and connect on a deeper, more personal level.” The Vision Fund believes categories like real estate will be enhanced—not replaced—by technology.The real estate sector’s central appeal is its sizeA mega-fund like SoftBank’s demands mega-opportunities(The fund’s minimum investment is $100 million.) Real estate provides the kind of unfathomably large numbers SoftBank’s team needs to get excited: $228 trillion in global real estate asset value.Further, the real estate industry is fragmentedFor example, the largest residential brokerage and real estate services company in the US, Realogy, owns around a dozen different brands and controls a single digit percentage of the marketAnd real estate’s leading players have been slow to adopt technology“Traditional real estate players are fundamental value investors looking for current yieldThey just think about the world so differently,” says Ryan Scott Abbe, head of real estate investment banking at ?JMP Securities“They’re scratching their heads at all of these technology solutions.”The availability of data is making the market more efficient, making it harder for real estate investors to earn a return by simply buying low and selling highInvestors, brokers, financiers, and related players must increasingly rely on technology to move faster and make more strategic decisions, or face new, tech-enabled competition“It’s probably the last great bastion of the global economy that has not seen that type of disruption,” says Richard Sarkis, CEO of Reonomy, a commercial-real-estate data platform in which SoftBank invested in before the Vision Fund was created.The opportunity has drawn venture capitalists of all stripes to the sectorInvestment in real-estate-focused tech startups (called “proptech” by insiders) surged to $9.8 billion in 487 deals in 2017, up from just $546 million in 133 deals in 2013, according to CB InsightsIt’s a big leap, even setting aside the Vision Fund’s $4.4 billion WeWork investment.But few can move as quickly or invest as aggressively as SoftbankCEO Masayoshi Son, who likes to talk about 300-year timeframes, is known for pushing entrepreneurs to raise more money than they’d originally planned and expand their ambitions beyond their wildest dreams.In November 2017, Compass, a New York City-based residential brokerage chain, had just secured a $100 million round of funding led by Fidelity InvestmentsThe company was not looking to raise more money“The Fidelity round was all we needed for what we had set out to accomplish,” says CEO Robert ReffkinBut that changed after a meeting with Vision Fund executives“They wanted to support a more ambitious vision that we have,” on a much faster timeline, Reffkin saysA month later Compass announced a $450 million investment from the Vision FundThe allowed the company to compress its three-year growth plan into one yearThe company now aims to control 20 percent of the residential real estate markets in 20 cities by the end of 2020.In many cases, the real estate market’s outsized opportunity is matched by outsized capital requirementsAny startup that deals in physical assets needs a lot of cashKaterra, which manufactures building parts to be assembled on-site, has opened capital-intensive factories in Phoenix and SpokaneWeWork is now the second-largest private office tenant in New York City; each of its office spaces must be meticulously built out and decorated to suit its chic aestheticA few months after its mega-funding from SoftBank, WeWork shelled out $850 million to acquire the Fifth Avenue Lord & Taylor building.Lemonade is attempting to remake the insurance industry without relying on legacy players to underwrite its offeringsMost of its competitors are worth tens of billions of dollars and nearly a century old“For us, having the gumption and wherewithal of an investor like SoftBank is a game-changer,” CEO Daniel Schreiber says“It sends a strong message to our competitors who sit on tens of billions of dollars.”SoftBank has made its real estate plays in obvious areas—construction, brokers, office space, and housing insuranceBut the fund is not approaching the category with a narrow viewHousenbold has a long list of subsectors he’s evaluating for future investments: Real estate applications for 3D printing and scanning; financing including primary and secondary mortgages, insurance, and title escrow, as well as alternatives like crowdfunding; blockchain technology related to title insurance; platforms for home services professionals like cleaning and repair; software for commercial property managers; in-home technology including solar panels, Wi-Fi, home automation, doorbells, smart assistants and security; drones that could help spot problems at properties and construction projects; and storage (“Americans are kind of hoarders and spenders and storage is a pretty high profit category, he says”)In other words, anything that remotely touches the physical world we live in.Other SoftBank’s investments, some of which predate the Vision Fund, already touch those categoriesMapBox is focused on location dataImprobable’s stated ambitions include improving citiesSoFi, a personal finance startup, offers mortgage refinancingProptiger is an Indian real estate portal in which Softbank owns a stake through its merger with’s real estate strategy is an “an ecosystem approach” similar to the fund’s numerous investments in ride-hailing, according to Alexander Paci, a real estate analyst at CB InsightsThere, SoftBank has invested in Didi Chuxing in China, Ola in India, Grab in Singapore, 99 in Brazil, and Uber in the USIn some cases, the companies have forged partnershipsDidi acquired 99 and Uber’s China operationsIn others, they remain bitter rivals, as with Uber’s India operations and Ola.In the year it has been investing, the Vision Fund has offered opportunities for its portfolio companies to partner with one another but not pushed for any formal collaborationThe fund hosts regular networking gatherings and private dinners, often around conferencesSo far, the fund’s real-estate investments have struck fairly small partnerships that could have happened regardless of their shared investorSome of Compass’s real estate brokers operate out of WeWork offices, for example.More interesting pairings may come from SoftBank’s forays into the traditional real estate marketThe company recently acquired Fortress Investment Group, a private equity firm with $44 billion in assets under management including large real estate and real estate credit fundsSoftBank also reportedly plans to buy a sizable stake in Swiss Re AG, the reinsurance giant(The firm declined to comment on reported deals.) Some observers view the Fortress and potential Swiss Re deals as a way for SoftBank to offset risky startup bets like Lemonade or WeWork with a more conservative, reliable business with steady cash flows.Son’s dealmaking has been called a form of king-makingThe Vision Fund identifies startups seeking global domination of a new market, where having the most money means they can become the biggest, the fastest“They’re manufacturing these opportunities,” says Brad Greiwe, managing partner at Fifth Wall Ventures, a real estate-focused venture firm“The problem is it’ll take seven to 10 years to watch these things mature and monetize to see if they’re right.” But in the scheme of Son’s 300-year plan, 10 years is a blip.Bits and BricksThe Vision Fund is SoftBank's effort to position itself for the singularity.WeWork is positioning itself as the company with the most valuable knowledge about how jobs best get done.Venture capitalists are most excited about the prospects in artificial intelligence, the blockchain, and, in some cases, petsRelated VideoScienceFear Not the Robot SingularityThe robot revolution we’re in the midst of is way more interesting and way less murder-y than science fictionCall it the multiplicity.#softbank#vision fund#real estateMost PopularsecurityThis ‘Demonically Clever’ Backdoor Hides In a Tiny Slice of a Computer ChipAuthor: Andy GreenbergAndy GreenberggearApple’s Done Making Airport Routers, So Try These InsteadAuthor: Brian BarrettBrian BarrettgearBest Weekend Tech Deals: 200GB MicroSD, Ecovacs Deebot, Apple iPadAuthor: WiredWiredMore StoriesView CommentsSponsored StoriesPowered By OutbrainDavid NCicillineCompetition Is at the Heart of Facebook’s Privacy Problem John DoerrWhen John Doerr Brought a ‘Gift’ to Google’s FoundersIssie LapowskyHere’s What Facebook Won’t Let You PostNitasha TikuWhat's *Not* Included in Facebook's 'Download Your Data'Nitasha TikuFacebook’s 2017 Privacy Audit Didn’t Catch Cambridge AnalyticaMore businessTelecommunicationsThe Sprint/T-Mobile Merger Is Huge—But Questions RemainAuthor: Klint FinleyKlint FinleyWIRED OpinionData Protection Standards Need to Be GlobalAuthor: Kai KellerKai KellerAlphabetGoogle Cofounder Sergey Brin Warns of AI's Dark SideAuthor: Tom SimoniteTom SimoniteBackground CheckThe Startup That Will Vet You for Your Next JobAuthor: Klint FinleyKlint FinleyOn the AirFacebook Launches a New Ad Campaign With an Old MessageAuthor: Nitasha TikuNitasha TikuPowering ThroughWhy Facebook's Troubles Haven't Dented Its ProfitsAuthor: Nitasha TikuNitasha TikuWe RecommendPowered By OutbrainLouise MatsakisFacebook's Targeted Ads Are More Complex Than It Lets OnTom SimoniteSome Startups Use Fake Data to Train AIJessi HempelThe Future of Snapchat Looks a Lot Like Magic LeapKlint FinleyGmail Is Getting a Long-Overdue UpgradeErin GriffithSpotify Bolsters Free Service in Defense Against Apple MusicGet Our NewsletterWIRED’s biggest stories delivered to your inbox.submitSubscribeAdvertiseSite MapPress CenterFAQAccessibility HelpCustomer CareContact UsSecuredropT-Shirt CollectionNewsletterWired StaffJobsRSSCNMN CollectionUse of this site constitutes acceptance of our user agreement (effective 3/21/12) and privacy policy (effective 3/21/12)Affiliate link policyYour California privacy rightsThe material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Condé Nast. window.__INITIAL_STATE__ = JSON.parse(decodeURIComponent("'s%20%2493%20billion%20Vision%20Fund%20is%20making%20big%20bets%20on%20real-estate-focused%20startups.%22%2C%22seoTitleClean%22%3A%22SoftBank's%20Futuristic%20Vision%20Fund%20Takes%20on%20the%20Real%20(Estate)%20World%22%2C%22tags%22%3A%5B%22softbank%22%2C%22vision%20fund%22%2C%22real%20estate%22%5D%2C%22dek%22%3A%22SoftBank%26%2339%3Bs%20%2493%20billion%20Vision%20Fund%20is%20making%20big%20bets%20on%20real-estate-focused%20startups.%22%2C%22hed%22%3A%22SoftBank%26%2339%3Bs%20Futuristic%20Vision%20Fund%20Takes%20on%20the%20Real%20(Estate)'s%20%2493%20billion%20Vision%20Fund%20is%20making%20big%20bets%20on%20real-estate-focused%20startups.%22%2C%22socialTitleClean%22%3A%22SoftBank's%20Futuristic%20Vision%20Fund%20Takes%20on%20the%20Real%20(Estate)%20World%22%2C%22url%22%3A%22story%2Fsoftbanks-futuristic-vision-fund-takes-on-the-real-estate-world%22%2C%22template%22%3A%22default%22%2C%22galleries%22%3A%7B%22lede%22%3A%5B%5D%7D%2C%22videos%22%3A%7B%7D%2C%22contributors%22%3A%7B%22author%22%3A%5B%7B%22name%22%3A%22Erin%20's%20Futuristic%20Vision%20Fund%20Takes%20on%20the%20Real%20(Estate)%20World%22%2C%22pubDate%22%3A%222018-04-16T11%3A00%3A00.000Z%22%2C%22modifiedAt%22%3A%222018-04-13T19%3A35%3A54.175Z%22%2C%22bylinePlacement%22%3A%22feature-byline-top%22%2C%22dateFormats%22%3A%7B%22m.d.y%22%3A%2204.16.18%22%2C%22c%22%3A%222018-04-16T11%3A00%3A00.000Z%22%2C%22g%3Ai%20a%22%3A%2207%3A00%20am%22%2C%22F%20j%2C%20Y%22%3A%22April%2016%2C%202018%22%2C%22Y-m-dTiZ%22%3A%222018-04-16T07%3A00%3A00-04%3A00%22%7D%2C%22body%22%3A%5B%22div%22%2C%5B%22p%22%2C%5B%22span%22%2C%7B%22className%22%3A%22lede%22%7D%2C%22In%20the%20last%20%22%5D%2C%22two%20months%20Michael%20Marks%20has%20turned%20down%20a%20dozen%20offers%20to%20make%20keynote%20speeches%20at%20conferences.%20His%20company%2C%20construction%20startup%20Katerra%2C%20is%20three%20years%20old%2C%20but%20the%20attention%20surge%20is%20very%20recent.%20%E2%80%9CConstruction%20technology%20has%20gotten%20kinda%20buzzy%2C%E2%80%9D%20he%20says.%22%5D%2C%5B%22p%22%2C%22That%20may%20be.%20But

Trending Vermont News:

  • Vermont State Police consider moving Williston barracks
  • VT governor signing PFOA bill into law in Bennington
  • Vermont school district wants to provide condoms to students
  • Coverage: Verizon buys Yahoo for $4.8 billion
  • Wilmot Whitney, Jr.
  • Vermont officials to make announce in ski resort fraud case
  • Modern retreat in Vermont inspired by a meadow landscape
  • Meet a new breed of hipsters: flipsters, millennials who flip homes
  • Downtown bridge work underway
  • Community Bancorp Vermont (CMTV) Director Acquires $29,682.50 in Stock
  • Demolition Underway on Vt. Mall, Ahead of Redevelopment
  • Judith Jones, Editor of Literature and Culinary Delight, Dies at 93
  • Vermont farm rises above other creameries
  • Report from Jay Peak
  • Why You Should Live In Waterbury
  • Vermont Governor Discusses Sale Of Construction Company Partnership
  • Vermont State Parks Inherits Beauty of Taconic Mountains Ramble
  • Why These 10 Cities Are Best For Growing Food
  • Power outages still ongoing
  • Montpelier, VT: Financial Capital