Australian proptech startup RiskWise Property Research is planning global expansion, starting with a push into New Zealand in 2019 and the UK in 2020.
The company aims to ‘open up shop’ in Auckland in July next year.
RiskWise CEO Doron Peleg said later in the year the fintech startup would begin expansion plans into the United Kingdom, including detailed market analysis and research, with the goal to start operations in 2020.
The US expansion will follow in 2021/22.
RiskWise, which was founded in 2016, uses a cutting edge advanced algorithm to determine the risk rating of a property – the only one available on the market.
“We have brought artificial intelligence to a much-needed arena – the number one asset class in Australia and in many other countries – and where risk has a major impact on lenders and developers,” Mr Peleg said.
“The approach we have developed and implemented in Australia is a way to model both data and information variables.
“RiskWise has researched a large number of events in Australia and this has enabled us to build outstanding capabilities.
“For example, our research provides information on the risks associated with a Labor win at the next Federal election and the potential impact of changes to negative gearing and capital gains tax from the individual property to the capital city level. We can apply a similar approach in other countries – in the UK, for example, the effect Brexit will have on the property market.”
He said the company had assessed the risks and the impact of the 2007-2008 GFC, a variety of incentives to first home buyers, the end of the mining boom, the unprecedented capital growth in Sydney and Melbourne, restrictions on foreign investors, credit restrictions, the Banking Royal Commission and, more recently, the potential impact of changes to negative gearing and capital gains tax.
“We plan to replicate in New Zealand what we are doing here in Australia, applying the same approach and business model, and then take it to the rest of the world,” Mr Peleg said.
“While the two markets are different, they also have quite a few similarities – their market needs are similar. Australia has been a good platform for us to build robust processes that will be essential when we move into New Zealand and other countries.”
Mr Peleg said the move into New Zealand would be timed simultaneously with the company’s business growth and expansion in Australia.
“We expect very strong demand for our services as risk in the property market is currently the number one priority across the entire property industry, whether lenders, investment funds, developers, investors etc,” he said.
RiskWise is in the process of capital raising with a number of venture capitals, high net worth individuals and other investors, led by Follow[The]Seed.