On the heels of graduating its first class last year, Dallas real estate accelerator Motive is taking a hiatus, prompted by the drastic drop in oil prices and instability in financial markets.
Co-founder John Backes told Dallas Innovates that the decision to put the accelerator in “hibernation” was made after its leadership and partners evaluated recent turbulence in the stock market and uncertainty over the effects of low oil prices on North Texas real estate.
“We don’t know how oil will affect real estate in Dallas,” Backes said.
Backes, who will spend the spring and summer in New York at the coding bootcamp FullStack Academy, said he intends for Motive’s hiatus to be short-lived.
“When I say hiatus, I really mean short-term” Backes said.
He said while 2015 was a growth year for startups, in 2016, investors will be looking closely at which startups are showing progress and which are not.
“We don’t know how oil will affect real estate in Dallas,” John Backes said.
“I don’t know what the future holds, because things move so quickly,” Backes told Dallas Innovates.
“You’re going to see a lot more caution in angel investors,” Backes said. He said the amount of risk investors are willing to take will tighten.
Taking time off will give the accelerator’s founders a chance to see where the members of its current class are at the end of the year.
“We’re not standing still,” he said.
Motive’s first graduates were Skyrise, Easeful, Casalova and Dwelo, and it had planned to accept 10 companies 10 companies in 2016 with a $100,000 sponsored pitch prize. The accelerator planned to broaden its focus to include all real estate — not just commercial — as well as travel, fintech, the Crowd and the Experience Economy, according to Motive’s website.
Dwelo was able to raise an additional round of funding in February, lead by Conserve, with follow on from Peterson Ventures, according to Motive’s website.
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