The Summer of Proptech Venture Capital
The summer of 2021 was a return to normal for the global real estate tech industry. While the industry is on track to be a record year, venture capital investments in private real estate tech companies is on pace to perform at pre-pandemic levels and has surpassed market expectations.
Over the past three months, the global real estate tech market witnessed a significant rise in venture capital investments. A total of $8.023 billion was invested during the summer months, June to August 2021. Month-over-month, dollar volume increased by 43.7% with $3.687 billion invested in real estate tech companies in July.
The increased flow of capital in real estate tech companies is only one of the signals of the rising real estate tech wave. Compared to 2020, venture activity increased by 208.01% during the summer months. 23% of total venture activity went to Series B companies. Collectively, funding activity Series B and greater represented 75% of total funding. Early-stage investments, including Angel, Seed, and Series A funding, represented 25% of total funding.
Companies road the hot summer of funding in 2021, which has seen major deals in real estate tech. In June, Fundrise, a Washington, DC-based alternative to investment company, raised $300 million in Debt Financing from Goldman Sachs, making the largest round in real estate tech during the summer of 2021. In July, EquipmentShare, a Columbia, MO-based construction equipment rental company, raised a $230 million Series D led by Tiger Global Management, The Spruce House Partnership, and RedBird Capital Partners. In August, Divvy, a San Francisco, CA-based tech-enabled real estate platform that facilitates rent-to-own home purchases, raised a $200 million Series D led by Tiger Global Management and Caffeinated Capital. Later in August, Reali, a San Mateo-based alternative homeownership company, raised a $250 million Series B in debt and equity led by Zeev Ventures.
Overall, as deal and funding amounts continue to trend upward, along with the growing community of entrepreneurs, startups and investors, we expect the real estate tech industry to continue to grow in 2021 into 2022.
