[FH]: What is Unlockit and what problem are they solving?
[TD]: Unlockit is a Web3 PropTech & GovTech company that is disrupting the market by making the transactional process of buying, selling or renting a property more digital, simplified, transparent, collaborative and secure for everyone involved, while ensuring full compliance with the latest EU laws (eIDAS, AML6 & GDPR).
The real estate market is not consistently connected and real estate brokerage business processes are considered extremely inefficient and opaque. This lack of transparency results in a lack of trust between the different actors, since many of them have conflicting interests. The current process of buying or selling a property involves a wide range of different actors with different functions and objectives, which makes it difficult to guarantee that all interests are aligned. These contradictory forces make the commercial process very ineffective, costly, and time-consuming. Since there is no trust between the different parties, the process requires the authentication of multiple documents, the signing of a myriad of contracts that entail high legal costs, the validation of the identity of each one and the need to closely monitor the payment of the commission, which, in the event of a dispute, implies high legal costs. These requirements become more difficult to overcome because information is stored in multiple private and public silos that do not communicate with each other. It's an almost endless process of authenticating and validating everyone's documentation. The process is paper-based, meaning that it's difficult to guarantee data integrity throughout the entire process.
[FH]: When you look at your past, it's very clear that entrepreneurship was always present in your life. How have your previous experiences shaped the way you work at Unlockit?
[TD]: I started working in the technology market 18 years ago, when it was still a relatively new sector. I was fortunate to be hired for a management position in a medium-sized IT consulting and outsourcing firm. I quickly rose through the ranks, becoming a top producer and a successful manager. I was able to grow my career exponentially, eventually gaining the ambitious position of C-Level executive.
After some time, I began to feel that something was missing. I was making a lot of money, but I didn't feel like I was in control of my life. I was always stressed and I wasn't learning anything new. I knew that I wanted to do something more meaningful with my life. At 32, I decided to make a radical change in my career. I quit my job in the management area and moved on to the technical and product side of the technology industry. Despite not having any experience in this field, I had the courage to create my own companies from scratch. But I was always willing to step out of my comfort zone. I was one of the three founders of RealFevr.com, Hustler, and the project's first CEO. I was there until 2019, which was a fantastic but painful experience.
I had to learn from my mistakes and start reading about everything. I was able to improve my skills and knowledge and I learned that true happiness lies in the journey of doing something meaningful and being better every day. It's not about arriving at a destination, but about enjoying the learning and growth process.
[FH]: What were your biggest challenges when creating the company and how did you solve them?
[TD]: The company's first 18 months were difficult. We started with four people, but in the end I had to fire the others. It was not possible to continue like this. I wanted to continue on my own and it was the most difficult decision I ever made, but it was the most correct one.
I listened to feedback from our clients and investors and transformed the company into a web3 and blockchain company. The vision remained the same, but the script was completely different. I retained our existing clients and maintained our relationships with them, while spending all my time studying the scientific literature on DLT/Blockchain/Real Estate and tokenization. I was following the advice of my mentor, Pedro Roseiro, who had told me that this was the future of the company. It was a lot of work, but it was worth it. Everything has changed since then.
Finding the right investor was one of the biggest challenges I faced as a founder. It took me a long time to find someone who believed in my vision, energy, and experience, and who was willing to support the growth of Unlockit. However, I never gave up. I continued to believe in myself and my company, and I never doubted that we would be successful. I believe that courage is the most important trait of a founder. It's essential to be able to persevere in the face of challenges and never give up on your dreams and vision.
[FH]: How do you see the role of financial literacy in empowering people to make informed decisions when it comes to buying, selling, or renting properties?
[TD]: I think it's strange that people in Portugal feel the need to have a home, especially in a poor country like ours. However, I can understand the emotion behind it. After all, a house is a symbol of stability and security. If we want to buy a house, we must have the money saved. However, in Portugal, 95% of people use credit to buy a house. This puts them in a difficult financial situation in the coming years. I'm 43 years old and I don't have any debts, and I think everyone should strive to be in the same situation. I think that the reason why so many people in Portugal use credit to buy a house is the fact that they were sold the idea that owning a home is the key to financial security. That's simply not true.
To make matters worse, Portugal is the country with the lowest financial literacy, which is dramatic.
On the other hand, there is no single source of credible information. That's one of the things we're trying to solve. We want to give people the power of data again and unlock information of public interest, such as the real value of transactions. People can't make more informed decisions without data they can trust.
[FH]: As an entrepreneur in the proptech and govtech sectors, what are some of the main challenges you faced to boost innovation and disrupt traditional processes? How do you navigate regulatory complexities and ensure market adoption of Unlockit.io solutions?
[TD]: The proptech market is one of the most traditional markets in the world. Although some innovative companies are beginning to emerge, the sector is still largely dominated by traditional players. This is due to the fact that the real estate market is slow to change and that people are used to working the same way they have always worked. Changing the mentality of people in the real estate sector is a difficult task. It takes time and effort to convince people to adopt new technologies and processes. Even if you have a lot of money, you can't change the market overnight.
However, I believe that the younger generation will be the catalyst for change. They are more technologically savvy and demanding than previous generations and are looking for a more reliable, digital and transparent real estate process. As they become more active in the market, they will force traditional agents to adapt to their needs. I am optimistic about the future of proptech. I believe that the younger generation will change the market forever and make it more efficient, transparent and accessible to everyone.
[FH]: How has Fintech House helped you so far?
[TD]: I'm not the type of person who's always present at the Fintech House. Start-up companies are a daily execution exercise. I only go to Fintech House when I have a specific objective, as was the case with the meeting with Lince Capital the last time I was there.
Fintech House is a great experience because it gives me the credibility we need. Connect me with the VC and other people in the sector, which gives visibility to the project. In addition, the team is always available to help in any way they can, even to open doors, which I appreciate very much.
[FH]: In your opinion, what are the most promising fintech trends that could gain strength in the Portuguese market next year?
[TD]: The fintech sector is constantly evolving, driven by technological advances and changing consumer behavior. We can anticipate significant growth in several key areas over the next two years: generative AI and machine learning, digital identity platforms, cybersecurity, blockchain, and fraud prevention. In addition, in the long term, the convergence of artificial intelligence and blockchain has great potential and can be a fundamental step towards creating more reliable, efficient and transparent markets and ecosystems.
[Original interview at https://thefintechhouse.com/knowledgecenter/tiago-dias-founder-of-unlockit/]
