Weekly Proptech: Friday, November 18, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — $469 million was invested across 31 companies at a median funding amount of $5.1 million. Some of the largest funding rounds went to multifamily, climate, residential, finance, debt services, and other real estate technology categories.

Funding in a Nut Shell: This week, venture capital investments increased by 198.7 percent. Led by a 93.8 percent increase in deal volume, total funding surpassed the weekly median funding for the first time in 3 months.

CRETI PROPTECH VENTURE INDEX

State of the Market

This week we took a look at proptech venture capital investments between $100 to $200 million and what it means for the industry.

$100 million funding rounds were back in vogue this week. A rare sighting in today's market when over 50 percent of weekly funding in 2022 has been below the median funding trend line. However, funding rounds between $100 to $200 million have been more commonplace than expected, even in a tight market.

Year to date, 31 companies publicly announced a funding round between $100 to $200 million, a 6.9 percent increase in deal volume across venture debt and equity deals, compared to 2021.

What Does This Mean For PropTech?

Big deals are still getting done. The focus throughout the year has been on early-stage companies and valuations. Despite general compression in the market, $100 million rounds in the proptech industry held strong. However, there are some nuances.

61 percent of companies raised a venture debt round. Additionally, 90 percent of companies that raised between $100 to $200 million were op co-prop co and/or alternative real estate-finance companies, suggesting a better-than-average balance sheet compared to conventional hardware or software proptech startups.

Notable Rounds of Funding

  • Valcre raised a $13 million Series A led by Avenue Growth Partners with investments from Second Century Ventures, the venture capital arm of the National Association of REALTORS.

  • Atmos raised a $12.5 million Series A led by Khosla Ventures with investments from Keller Capital, JLL Spark, Shrug Capital, Y Combinator, and 11 other investors.

  • REZI raised a $100 million Venture Debt round led by Stratos.

Driving Proptech Headlines

 
CRETI https://cretiventures.com
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