In the corner office overlooking Chicago’s Michigan Avenue, Dave Garland reviews applications from hopeful tech founders. As managing partner at Second Century Ventures (SCV), the strategic investment arm of the National Association of Realtors, Garland isn’t just evaluating business plans—he’s identifying potential drivers of real estate’s future.
“We’re not simply looking for return on investment,” Garland explained during our recent interview. “We’re searching for technologies that solve fundamental problems in the real estate ecosystem.”
This philosophy drives REACH, SCV’s accelerator program that has quietly become one of the most influential forces in property technology. Since its launch in 2013, REACH has graduated over 200 companies that have collectively raised more than $2 billion in follow-on funding and created solutions used by millions of real estate professionals worldwide.
The accelerator has expanded beyond its Chicago and U.S. origins to operate programs in Australia, Canada, the UK, and most recently, Latin America. This global footprint gives REACH unique visibility into emerging trends across diverse property markets.
“Real estate technology adoption curves vary significantly by region,” notes Tyler Thompson, managing partner at SCV who oversees international expansion. “What’s standard practice in one market might be revolutionary in another. Our global presence allows us to cross-pollinate innovations.”
The Federal Reserve’s recent interest rate decisions have created challenging market conditions for real estate. According to NAR data, existing home sales in April fell 4.3% from March and were down 22.7% from a year ago. This pressure has paradoxically accelerated technology adoption as agents, brokers, and other stakeholders seek efficiency and competitive advantages.
REACH companies appear well-positioned for this environment. The 2023 cohort includes platforms addressing everything from transaction management to home services marketplaces. Many focus on what Mark Birschbach, SCV’s senior vice president, calls “operational technology” designed to reduce friction rather than displace human agents.
“The narrative has shifted from ‘tech will replace agents’ to ‘tech will empower the best agents,'” Birschbach told me. “Our most successful companies enhance rather than eliminate the professional’s role.”
This philosophy aligns with findings from the National Association of Realtors’ 2023 Technology Survey, which revealed that 78% of agents believe technology enhances their ability to serve clients, though 63% still fear potential disintermediation from digital platforms.
REACH’s selection process reflects this balancing act. The program accepts fewer than 2% of applicants, with criteria extending beyond traditional venture metrics like market size and team quality. Companies must demonstrate potential to strengthen rather than disrupt the agent-client relationship.
Financial Times research suggests this approach is working. REACH companies show a 72% survival rate five years post-graduation, significantly outperforming the broader startup landscape where failure rates typically exceed 70%.
One critical factor in this success appears to be REACH’s mentorship model. The program pairs founders with established industry executives who provide market insights and potential customer connections. This real-world feedback loop helps startups avoid common pitfalls of building solutions disconnected from practitioner needs.
“The mentorship completely transformed our product roadmap,” said Maria Harris, founder of Proptech-X, a 2021 REACH UK graduate. “We learned our initial assumptions about agent workflows were fundamentally flawed. That guidance likely saved us from building something no one would use.”
Beyond product guidance, REACH provides companies with access to NAR’s 1.5 million members—a powerful distribution channel for scaling solutions. Participants gain opportunities to demonstrate their technologies at industry events and through direct introductions to large brokerages and MLSs.
This distribution advantage has grown increasingly valuable as venture capital for early-stage proptech has contracted. Bloomberg data shows proptech funding declined 38% in 2023 compared to 2022, forcing startups to demonstrate clearer paths to revenue and profitability.
“The days of growth at all costs are behind us,” observed Amy Millard, CEO of VirtualAPT, a 2022 REACH graduate. “Today’s real estate tech investors demand sound unit economics and practical solutions to immediate industry challenges.”
The program’s focus appears to be shifting accordingly. While early REACH classes featured many consumer-facing marketplaces and listing platforms, recent cohorts include more companies addressing back-office efficiency, transaction management, and data analytics—solutions that generate immediate ROI for professionals navigating challenging market conditions.
This evolution mirrors broader trends in property technology. According to research from the MIT Real Estate Innovation Lab, the industry is entering a “maturation phase” where integration and operational improvements are displacing pure disruption narratives.
REACH’s influence extends beyond its portfolio companies. The program has helped establish standards for how real estate firms evaluate and implement technology. Many brokerages now use frameworks developed through REACH to assess potential tech partnerships.
Critics note that SCV’s relationship with NAR creates potential conflicts between protecting incumbent interests and fostering true innovation. Some industry observers question whether REACH can nurture technologies that might fundamentally challenge existing business models.
“There’s inherent tension in being both an innovation catalyst and the investment arm of an established trade organization,” said Jesse Davis, principal at Moderne Ventures, a competing proptech fund. “The question is whether REACH can support companies that might disrupt NAR’s core membership.”
SCV leadership acknowledges this tension but argues their approach creates more sustainable innovation. “Revolutionary changes rarely succeed in real estate without evolutionary adoption paths,” Garland noted. “We look for companies that can transform the industry while bringing practitioners along on the journey.”
As the real estate market navigates post-pandemic adjustments and interest rate challenges, REACH’s influence appears likely to grow. The program recently announced expansion into commercial real estate and residential property management, extending its model beyond traditional brokerage.
For industry professionals watching these developments, the message is clear: technology adoption is no longer optional, but the most successful innovations will enhance rather than replace the human elements of real estate transactions. As REACH continues identifying and nurturing these solutions, its portfolio provides a window into real estate’s technological future.
Whether that future represents evolution or revolution remains to be seen, but REACH’s growing global footprint ensures it will have significant influence on how the industry’s digital transformation unfolds.
