London-based startup Tract, once seen as a rising AI star in UK property tech, has shut down. The company, launched in 2023, aimed to streamline housing development through smart planning tools. Despite raising nearly £1 million in venture capital, it officially closed in March 2025. The reason? Tract never made any revenue.
The closure raises tough questions for the UK proptech sector. Can startups succeed in a market this resistant to change?
Built to Solve the UK Housing Crisis
Tract launched with a bold goal: help solve the UK’s housing shortage. Founders Jamie Rumbelow and Henry Dashwood believed planning permission was the biggest bottleneck. Their plan was to use AI to make the process faster and clearer.
From the start, Tract attracted investor interest. In September 2023, it raised a pre-seed round from Ada Ventures and Concept Ventures. Another £744,000 came in April 2024. The team developed tools to identify land, assess planning risks, and draft documents.
But the ideas never turned into income.
Tract’s AI Tools Were Clever — But Misaligned
Tract created several AI-driven tools. These included Tract Source, a land-sourcing tool, and Tract Editor, which helped draft planning documents. Other tools targeted landowners and consultants. The products worked well, but customers weren’t ready.
They focused on smaller plots of land — often missed by big developers. Their AI engine scanned local planning data, created development plans, and even ran risk checks. Still, even with all that innovation, no one paid to use it.
Founders Reflect on Why Tract Failed
In a frank blog post published April 3, 2025, the founders owned their mistakes. They said they spent too much on things that didn’t matter — like branding, contractors, and even a trip to America. As Rumbelow put it, it was “vanity and stupidity.”
They also admitted they didn’t push hard enough on sales. The tech came first. Revenue came later — or rather, it never came at all.
Beyond their own missteps, they pointed to the market itself. Property developers were slow to adopt tech. The planning system remained complex and change-resistant. Most potential customers weren’t willing to pay. Timelines were long, decision-makers cautious.
Six Key Lessons for Proptech Founders
Despite the failure, the cofounders shared lessons to help other entrepreneurs:
- Target better markets. The US is larger, faster-moving, and more open to startups.
- Test early. Don’t assume a product will sell. Test it fast.
- Stay lean. Avoid spending heavily until revenue is real.
- Think commercially. Focus on sales from day one.
- Move fast. Validate ideas and pivot quickly.
- Talk to users. Always ask what they need — not what you want to build.
Is the UK Proptech Sector Still Viable?
Tract’s failure shines a spotlight on deeper issues in UK proptech. Yes, the sector may attract billions in funding. But money doesn’t fix a market that’s deeply fragmented and slow to evolve.
Planning rules are rigid. Buyers move slowly. Many still rely on spreadsheets or consultants. Startups selling software in this space often struggle to break through.
This leads to a bigger question: is traditional venture capital the right model for proptech? Or does this sector need slower, more patient funding to match its pace?
What Tract’s Story Teaches Us About Market Fit
In the end, Tract built useful tools — just not for a market that wanted them. Their story isn’t just about one startup. It’s about a mismatch between fast-moving innovation and a slow-moving industry.
For the UK proptech sector to thrive, future startups will need more than great tech. They’ll need deep market knowledge, stronger public partnerships, and products that offer instant, clear value.
