In the third episode of "PropTech Power Talks," we hosted Sylvia Georgieva, the Managing Director of PropTech Bulgaria, CSE PropTech. Sylvia oversees the Central Southeast European PropTech (CSE PropTech) initiative, which focuses on generating valuable analytical information about ten Central Southeast European countries: Bulgaria, Greece, Croatia, Czech Republic, Slovakia, Poland, Romania, and Slovenia.

Sylvia delves into the expansive scope of PropTech Bulgaria's data generation efforts and discusses the exclusive, high-value information they provide about the region. Sylvia also explains how PropTech Bulgaria supports startups and emerging companies within the PropTech sector.

Q: How does PropTech Bulgaria support startups and emerging companies in the PropTech sector?

A: There’s nothing more valuable in any business sector, not just PropTech, than information and contacts. We have deep expertise in PropTech in the Central Southeast European (CSE) region, and we constantly update and enlarge the largest existing database of European-origin PropTechs. Our database currently covers all 47 European countries and will reach up to 8,000 companies by 2025. This is significant, considering that other PropTech associations or organizations only report about 6,100 European-origin PropTech companies.

We exceed this number because we also detect companies of U.S. origin, Chinese origin, and South Korean origin that operate in the region. Additionally, we closely track the GCC region, which is of great interest to British and German PropTechs looking to expand into Dubai and Saudi Arabia.

These 6,000 companies are the established ones we support. For startups and emerging companies, whether they're in construction or real estate, they can benefit from our annual analytical reviews. These insights are unique and have no equivalent anywhere else.

Over nine-plus years, we have built this database and continually update it because we are one of the first PropTech associations in Europe. It takes time and effort to maintain such a database. Startups and scale-ups can take advantage of this database and our analytical reviews. We can easily determine which countries are best for expansion based on the PropTech solution and its business model.

Most PropTechs aim to expand to the West, which is often too general and lacks focus. They don’t consider the market saturation in those regions. It's unwise to expand where the market is already densely populated. On the other hand, there are countries in Central and Eastern Europe with high demand and low supply for such solutions.

We closely track the energy tech sector, identifying 500 energy tech companies in Europe operating under 24 different business models. One-third of these companies focus on HVAC systems, making that market densely populated. PropTechs should consider the other 23 business models, which have high demand but fewer solutions.

We provide shortcuts for PropTechs to enter different countries, often after two to five years of operation. Through our European Cross Border PropTech Initiative, established three years ago, we facilitate the expansion of PropTechs into various European and beyond European countries.Q: Can you tell us about the specific programs or initiatives that PropTech Bulgaria offers to foster innovation within the industry?

A: So, we have a number of such on the way, but we shall announce them shortly within, 2025, because, you know, we have been working on some of these for more than two years, but we usually don't announce them unless everything is completed. Definitely, we have some great initiatives on the way. 

Q: What about startups? Like, how does PropTech Bulgaria support startups and emerging companies in the PropTech sector?

A: So there's nothing more valuable, in any business sector, not only PropTech, than information and contacts. We are the only ones who have deep expertise in PropTech in the SE, as I already mentioned. And furthermore, based on the fact that we have built on and constantly updated and enlarged the largest existing database of European origin PropTechs so far. In the world, we cover all 47 European countries, and our database reaches up to 8,000 companies, in 2025. As I mentioned, you know, this is really enormous, having in mind that, currently, based on the official data by other prop tech associations or organizations that make analytical reports on country levels in Europe, the number of European projects is, only for European origin projects is 6,000, 100, companies.

We exceed a lot because we also detect companies of, for example US origin, that operate or of Chinese or South Korean and we also track very closely the GCC region, which is of very high importance and interest both of British, prop techs or German prop techs, to expand into Dubai and Saudi Arabia. Mhmm. Well, so these 6,000 companies that you mentioned, these are the old companies that you support. What about the start ups, like, the emerging companies, the new companies? So, any company which is in prop tech no matter whether it is a startup or scale up or a corporation, that is a company that operates in construction to real estate, can take advantage of these insights that we generate, from our annual analytical reviews.

So this is huge, and, these insights, they're they have no equivalent anywhere. That's why we have built it, for nine plus years because we are one of the first proxy associations, which operate in Europe and it takes really a lot of time and effort. It doesn't happen overnight to have such a database. And, so, definitely it is very useful for startups, scale ups, no matter which is the company, to have advantage to take advantage of this, database and analytical reviews. For example, we can very easily say, depending on the prop tech solution and its business model, which countries are best, for its expansion, because, most, prop techs just want to expand to the West, which is too general and, to, I would say, lack focus and orientation, just to expand to the West, but they don't take advantage for, they don't take, into notice, into consideration, that, what what types of projects are already there and have covered the market.

And, in many cases, for example, the market for such a solution as theirs is too densely saturated. So it's highly unwise to go somewhere where everything is covered and, and at the same time, there are countries which like such solutions, but there's a high demand for such solutions, but low supply. But, these countries, for example, are not necessarily in the West. They could be in Central Europe or in Eastern Europe. So it is very useful to know, to know this.

We track very closely. This is the fourth year that we track energy tax very closely. So we have identified 500 energy taxes in Europe of European origin. This is really vast. And, they operate for 24 different business models.

And one third closely to one third of them, have a business model that solves an issue related to the HVAC system in, in any building. So you can imagine that one third of all energy techs are populating only one business model, HVAC related, which makes this business model very, very, very densely populated, and it's really unwise to go there. And at the same time you have 23 more business models which are, with very few solutions that operate in them but there's high demand And so it is very wise for PropTechs when they plan their strategic development, to take into advantage, for such into consideration such information. Another thing that we do for PropTechs, and usually, PropTechs in their, even not in their initial stage as a start up, but maybe two, three years, four years into their existence, we provide for shortcuts to enter different countries. Because, you know, when a start up starts to operate, it usually, you know, wants to cover the country that it originates from.

So, maybe two, three, four years, five years, had in its development, they tried to think about expanding abroad. And so, this is what, what we do, we can open doors, for these nine plus years that we have been operating, we know really everybody in PropTech and, we'll know whom, are the people who are reliable, which are the people that are reliable and, so, we have, established three years ago, the European Cross Border PropTech Initiative, which is meant, namely to facilitate, the expansion of prop techs into different European and beyond European countries. Oh, that's really impressive. I'm sure there must have been some challenges. Q: What are some of the most significant challenges that PropTech Bulgaria has faced, and how have you addressed them?

A: I have a strong background in strategy, having graduated with an MBA degree that ranks in the top 1% of MBA degrees worldwide, from a university in the UK. I also have several other higher education degrees. What I value most is my strategy background, both in education and experience. I've been an advisor and internal consultant to the board of directors of many large companies, working on international projects estimated at 100 million euros. This background has equipped me with the skills to estimate strategic movements, make industry evaluations, and conduct competitor analyses naturally.

When the PropTech sector started to evolve in Europe, several country associations, including the UK PropTech Association, the Austrian PropTech Initiative, PropTech Bulgaria, and a few others, began around the same time. Initially, until about 2022, we partnered well together. However, from 2022 onwards, some associations began perceiving themselves as competitors rather than partners. They started to steal information, contacts, and members from others, aiming to enter markets already established by other associations. For example, we have a strong association in Spain that has done extensive work identifying PropTech companies. Unfortunately, we now see other national associations entering Spain, attempting to benefit from the hard work already done. This is not good for the industry.

Q: Looking ahead, how do you see the role of PropTech Bulgaria evolving in the next five years?

A: It is challenging to predict precisely, but I can explain using a business concept called "industry clock speed," which refers to the lifecycle of a business model from inception to obsolescence. For PropTech associations, the industry clock speed is between two and three years. From the moment a business model idea is conceived to when it stops generating revenue, it takes only two to three years. This short lifecycle is why we observe associations becoming competitors, stealing business from others.

I can't say definitively what will happen in five years, but I believe in cooperation over competition. Sustainable and resilient growth is based on collaboration. We build networks like the European Cross Border PropTech Initiative, which aims to facilitate the expansion of PropTechs into different countries. This initiative allows PropTechs to test markets without opening offices or hiring local staff, providing deep insights and valuable contacts.

Q: What do you think of the significance of events like the London PropTech Show?

A: Events like the London PropTech Show are invaluable. They provide a concentrated opportunity to gain deep insights and information that would otherwise be difficult to obtain. Information is infinite, but time is finite. Such events allow attendees to interact with people they wouldn't normally meet, gaining new perspectives and insights. It's essential to dive deeper into these insights after the event to fully benefit from them.

Our conversation with Sylvia provided invaluable insights into the rapidly evolving PropTech industry in Central Southeast Europe. As we look ahead, it's clear that cooperation and strategic development will play a crucial role in the future growth of the PropTech sector. Events like the London PropTech Show further emphasize the importance of networking and knowledge-sharing within the industry.

To watch the episode: https://www.youtube.com/watch?v=01xRRREEHZE&t=10s