Weekly Proptech: Friday, July 15, 2022

Written By CRETI
 
 
 

This Week in Proptech

$226 million was invested across 19 companies at a median funding amount of $7.5 million. Some of the largest funding rounds went to construction, office, hospitality, sustainability, and residential proptech companies.

The Market in a Nut Shell: Investments rallied this week following an abysmal start to Q3. Venture capital investments in proptech surged 232.35%, with 50% of all capital allocation going to Seed & Series A companies.

Why Does This Matter?

This week the US 🇺🇸 consumer price index climbed 9.1% in June. The highest rate of inflation 📈 since 1981. The headline and hair-pulling 😣 figure was driven by an increase in gas prices, which jumped 11.2% from May to June.

What's the problem?
In July, gas ⛽️ prices dropped considerably, with the expectation of adjusted figures for July’s inflation report. However, the problem is that inflation is still ripping at insane levels in many areas of the economy besides the pump.

Take, for example, rents: The rent 🏢 index jumped 0.8% from May for its biggest monthly increase in 36 years. The lack of new and affordable units, high occupancy rates, rent control and rent stabilization, and other factors, have put a squeeze on renters.

What Does This Mean For Proptech?

The lack of supply in multifamily has created an opportunity for construction 🏗 tech companies, specifically off-site and modular tech, and innovative owner-developers.

The construction industry is one of the world’s largest sectors. The industry is so profound that a shift in the sector can have a major impact on global economic productivity—and recent modular projects have already established a solid track record of accelerating project timelines by 20 to 50 percent.*

Modular construction in European and the US has the potential to deliver annual savings of up to $22 billion.* In addition to advancements in materials technology, new proptech companies that enhance design capabilities and facilitate logistics have the potential to facilitate growth 🚀 in the sector.

*Modular construction: From projects to products, McKinsey.

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CRETI Proptech Index
The CRETI Proptech Index is a private market real estate technology index tracking the financial performance of the proptech industry. It is the most followed proptech venture capital indices, globally. Contact us to learn more.

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Notable Rounds of Funding

  • July 12, 2022 — Nexii, a Vancouver-based building solution that enables the rapid construction of sustainable and resilient buildings, raised a $34.2 million Venture Round led by Trinity Capital and Horizon Technology Finance.

  • July 12, 2022 — Assembly OSM, an NYC-based modular construction company, raised a $38 million Series A led by Fifth Wall and Bessemer Venture Partners’ Rob Stavis with investments from the Jefferies Group, Manta Ray Ventures, FJ Labs, RSE, Signia, Gaingels, New Vista Capital, Tectonic, Atento, Etan Fraser and Moving Capital.

  • July 14, 2022 — Robin, a Boston-based workplace platform to manage hybrid work, raised a $30 million Series C led by Tola Capital with investments from Accomplice, FirstMark, Boldstart Ventures, and Allegion Ventures.

 
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