Reonomy: Selecting a Growth Strategy in New York City's Proptech Sector

Founded in 2013 by three experienced technology entrepreneurs, Reonomy offered commercial real estate (CRE) brokers, lenders and developers fast, easy-to-use property intelligence reports and software tools exclusive to New York City. The startup's customer promise was to provide reliable NYC data and powerful analytics so CRE professionals could make faster, more secure and informed decisions. By 2016 Reonomy—with over 200 company subscribers and over 1,000 users—weighed several options for expansion: to invest in artificial intelligence (AI) and product development to enlarge its service offerings; to spend heavily on marketing to attract new types of clients in NYC; or to expand into more geographic markets across the United States. In this case, students will explore the competitive threats and investment requirements for each of the paths to growth as they consider which strategic option will satisfy both the founders' goals and their commitment to investors—namely, growth and profitability within a reasonable time frame