Ever Had A Home Renovation Go Over Time And Over Budget?
Revonate is the best way to make structural changes to your home and infuses trust throughout the renovation process by providing an architectural design and visualization platform.
The founding team at Revonate has deep experience in all things go-to-market, sales, marketing, customer success, CAD visualization, and has managed hundreds of millions of dollars in construction projects.
Read the rest of this article to find out how this proptech startup is revolutionizing residential renovation by providing a platform where homeowners can digitally experience their new home design.
So…What’s The Problem?
If you’ve ever done a renovation on your home, chances are, it probably went over time and budget.
If that statement resonates with you, don’t worry, you’re not alone.
In fact, 64% of renovations go over time and budget due to inaccurate project scoping.
If you break down how home renovations typically are done, you will find that you need three parties involved:
- An architect to design the floorplan
- A general contractor to actually do the construction
- A structural engineer to assess the structural condition of your home. w
This is a very difficult and complex problem to be solved, and this leads to people jumping into a renovation and simply “shooting by the hip”, hoping that the other parties will have everything figured out.
Revonate provides an all-in-one platform where you can connect with a dedicated assistant to reimagine your home and make sure your budget, timeline, and goals are set up for success.
To do this, Revonate listens closely to your needs and then turns the information over to a world-class design team who produce not only plans for the remodel, but photorealistic 3D visualizations of what the remodel will look like.
Even better, Revonate also provides an opportunity for you to dive deep into the METAVERSE to experience your new home design as the team can recreate your physical space in the virtual world, or they can design a completely custom presence all your own.
Revonate’s Unique Opportunity
The construction industry is a 450 billion-dollar industry in the U.S. alone.
Inside this goliath of an industry lies a massive imbalance of supply and demand.
This essentially means that there is no shortage of homeowners looking for help remodeling their homes, but there is a shortage of people who can do the redesign.
Because of this, a company like Revonate must be a clear value-add to both parties involved since this is such a prevalent problem on all fronts.
In the past few years, studies have shown a 34% increase in work from home.
The vast majority of workers in tech have a remote option for work now and 1.5 trillion dollars were materialized in homeowner equity just in 2021.
This means people are spending more time at home than ever before and are much more likely to make better use of their living spaces through renovation.
Another interesting trend that Renovate is taking into consideration is the advanced camera functionality that exists inside newer models of iPhones and iPads.
IPhone and iPad pro’s have LIDAR capabilities, meaning that you can take a video of a space and create a dimensionally-accurate CAD file of it.
Additionally, with the recent rise in virtual reality, homeowners can simply walk over to Walmart, grab a new Occulus, and experience their new home design in a digital world.
Inside the 450-billion dollar industry, there are over 650,000 remodelers in the country, yet only 15 of them are doing over $100,000,000 worth of renovation.
This tells us that there is a very massive, yet complex market opportunity that businesses have yet to truly capitalize on.
Let’s take a look at your current options today.
Let’s say you just bought a new home, it’s roughly 30 years old, and you want to knock down a few walls to have a more open-concept kitchen and modern living situation.
To do this, you most likely go through the following process:
- Reach out to your local general contractor.
- He or she shows up with a measuring tape and a legal pad.
- He or she then sends you a text message with a quote.
- After you receive the quote you put all your trust in the general contractor to provide you with exactly what you want and deliver it on time.
If you don’t go with option A, you might go through the following process:
- Reach out to your local architect.
- You request for them to take care of your design, construction administration, etc.
- Once they agree to help design your home, you are greeted with a hefty fee to go ahead and do that.
There is yet another option you can go with if you happen to be more familiar with the tech world.
Today, several tech-enabled GC firms focus on a specific project type, like a kitchen or a bathroom, but this business model is very difficult to scale.
Revonate Vs Competition
Now that we have explained today’s options to renovate a home, it’s time to see how Revonate stands amongst the current competition.
Revonate’s focus for architectural visualization is such that it is a clear value-add to general contractors AND homeowners.
If you want to visualize your space before you dive deep into your next renovation, Revonate is the best option to consider.
Revonate Mobile App
Right now, users can download the Revonate mobile app that acts similar to WhatsApp.
The Revonate app is a text-messaging interface that allows you to connect with a general contractor, architect, structural engineer, customer success managers, and more.
In addition to this, the Revonate app offers visualization tools similar to that of Google Earth where you can move the camera and walk around through new environments.
Revonate And The MetaVerse
Since we are quickly approaching the age of web 3.0, the Revonate team is buckling its seatbelts to join the ride in the METAVERSE.
Right now, Revonate is preparing the tools necessary to allow its userbase to walk around with the CAD files that they provide and experience their future renovation as if it has been completed in real life.
Revonate’s Market Penetration Strategy
Total Addressable Market
Although the TAM for the industry that Revonate is in is roughly $450 billion, the team plans to play within a $121 billion segment of this market.
This segment of the market includes home renovations that cost more than $50,000.
Serviceable Addressable Market
Revonate is aiming to eventually reach 10% market penetration within this $121 billion playground, however, they are starting at a smaller scale to begin.
Within this 10% subset of the market, the Revonate team will start by attacking the markets in just Boise, Idaho, and Las Vegas, Nevada.
Serviceable Obtainable Market
Paul and his team have strategized their plan under extremely conservative assumptions.
Within a 121-billion dollar segment of a larger industry, the team has assumed 10% of 10% of 10% market penetration.
I know, that is one complex calculation, so let me break it down:
- The Total Addressable Market is roughly 450 billion dollars.
- Revonate will operate within a 121 billion dollar segment of this market, as this is where all the home renovations over $50,000 lie.
- Within this segment, Revonate’s serviceable addressable market is roughly 10% of 121 billion dollars or roughly 120 million dollars.
- The team plans to initiate their plan by only tackling 10% of two states: Idaho and Nevada.
If the team just obtains 10% of Biose and Las Vegas, with a margin of 50% or more, the business will make at least 6 million in revenue within this year or next.
How You Can Help
Know any general contractors or architects that want to grow? Revonate would love to work with them!
Know any homeowners doing renovations currently? Revonate would love to work with them and connect them to one of their partners in their existing network.
Know any investors looking at companies diving into the metaverse? Revonate would love to connect with them!
Revonate is a proptech startup that every homeowner should have on their radar as they dive into their next home renovation.
Due to the common complaints given by homeowners about the improper planning procedures that take place during their remodel, Revonate has created an all-in-one platform that helps homeowners gain assurance that their needs will be met on time and within their budget by not only connecting with trusted partners but by virtually experiencing their new home before it is even built.
Want To Share Your Startup?
Contact us or leave a comment below to be featured in the next blog post.