PoliBit
Democratizing real estate investment through tokenization.
Startup Snapshot
Startup name: PoliBit
Industry: Proptech
Business Model: B2B
Founders: Gabriela Mena & Martha Mena
Operations: Mexico
HQ Location: Mexico City
Founded: May 2023
Stage: Pre-seed
Investors: Friends and family & Angel Investors
Website: https://www.polibit.io/
What does PoliBit do?
PoliBit developed a highly advanced digital infrastructure that connects real estate developers and micro-investors through a state-of-the-art real estate tokenization process.
This approach empowers developers to raise capital more efficiently, allowing them to issue tokens representing equity or debt backed by real estate assets. The tokens are entirely different from cryptocurrencies, as they are intricately linked to the underlying property value, which results in reduced volatility.
Moreover, this method perfectly complements traditional financing methods and offers cost-effective opportunities for micro-investors. By leveraging this approach, developers can undertake previously unfeasible projects, improving urban integration in Latin American cities.
What’s your backstory?
Gabriela and Martha were introduced by mutual friends and decided to join forces to create PoliBit. With her business acumen, Gabriela sought a technological partner, while Martha, an engineer with deep programming knowledge, was intrigued by Gabrielas vision and the potential social impact of the project.
Martha focuses on the technical aspects, such as selecting the appropriate technological stack, designing integrations, and building the platform, while Gabriela focuses on the vision, sales and marketing. Together, they form a cohesive team capable of addressing the technical and business challenges of developing PoliBit.
We are a passionate team with extensive experience in architecture, engineering, and technology who joined forces to democratize real estate investments. This is how PoliBit was born.
-Gabriela Mena, Co-Founder and CEO
How did you acquire your first customers?
With her previous experience as an architect, Gabriela realized the limitations in carrying out certain projects due to the financial return expectations. She realized that superior projects with desirable features like sustainability or urban integration were being discarded in favor of those with higher financial returns, creating an unaddressed gap in the market. To fill the gap in the market that traditional developers were not covering, Gabriela and Martha created PoliBit to democratize real estate investments.
Soon after, they landed their first customers through Gabriela's professional network and contacts she had made in the real estate industry.
Why real estate and why now?
The real estate industry in Latin America faces several challenges, including obstacles presented by traditional funding avenues, especially for projects aimed at middle-income housing or with sustainability features. Developers in the region have high return expectations, which can lead to neglecting projects that may not meet these profitability standards despite market demand. Crowdfunding systems, while present in some Latin American countries like Mexico are complex due to regulatory issues and a lack of banking integration. Additionally, developers struggle with limited access to global markets due to regulatory restrictions and infrastructure limitations.
To address these challenges, PoliBit is leveraging blockchain technology and tokenization to create a more accessible and efficient funding model. By bypassing traditional banking systems and regulatory constraints, PoliBit aims to facilitate global investment in Latin American real estate projects, providing developers with alternative funding options and overcoming the limitations of traditional financing methods.
How does it work?
Real estate developers tokenize their projects, and investors can purchase tokens that represent a fraction of the project. Unlike crowdfunding, where there is a middleman and some risks involved, investors can buy tokens directly from the developer. The transaction is powered by smart contracts on the blockchain, which ensures a secure and direct investment in the project.
What's your motivation?
The PoliBit founding team has two primary motivations.
Firstly, they want to positively impact traditional industries such as real estate by promoting a more sustainable and intelligent approach to project development. Gabriela believes that even the smallest changes in developers' mindset can have a multiplying effect on improving cities.
Secondly, Gabriela and Martha are motivated by the opportunities its platform can provide to ordinary people by enabling them to access real estate investments that were previously out of reach. They believe this can open up new possibilities for passive income for those looking to diversify their assets.
What's next for PoliBit?
PoliBit plans to expand its market presence by strengthening its position in Mexico and extending its reach to regions within the country. The startup is also looking to collaborate with developers from other parts of Latin America, particularly in Guatemala, Honduras, El Salvador, and Colombia.
Their main focus is on expanding its business and improving its infrastructure. Although users can currently receive funds through PoliBit's gateway and withdraw them through an exchange, the company is working on providing users with other mechanisms to enable them to receive their funds directly, giving users more flexibility with their investments.
PoliBit aims to make blockchain technology simple and user-friendly. Users don't need to understand the intricacies of the technology to invest and track their earnings. Instead, the company aims to make the technology work seamlessly in the background, allowing users to focus on their investments.
Tips for other founders:
Talk to potential customers as much as possible before building anything. It's better to avoid problems by trying to validate if your idea works before investing too much time and resources into it.
Validate your idea in small iterations and with rapid tests.
Avoid the pressure of raising capital from the get-go. It's better to validate your idea with the smallest possible resources and find Product Market Fit as soon as possible.
When immersed in building a business, it's easy to lose perspective. Surrounding yourself with mentors and people who can bring complementary perspectives and specific knowledge is very valuable.
VC Headlines:
Forget Warm Intros — This Method Is Better For Startup Fundraising - Forbes
Zacua Ventures has launched a new $56 million fund dedicated to construction tech - TechCrunch
Axelerate Talent Network:
Discover amazing opportunities in tech: https://getmatched.axented.com/jobs
Join the network: https://getmatched.axented.com/talent-network
Learn more: https://getmatched.axented.com
Special thanks to our sponsor:
Axented helps businesses design, build, and scale their products and teams worldwide.
With over 10 years of experience and a diverse portfolio of more than 300 projects delivered in over 15 countries, Axented has established itself as a trusted partner in the tech industry.
Renowned for its expertise and commitment to excellence, Axented provides innovative solutions to help businesses thrive in a digital world.
