Weekly Proptech: Friday, July 22, 2022

Written By CRETI
 
 
 

This Week in Proptech

$448 million was invested across 17 companies at a median funding amount of $6.0 million. Some of the largest funding rounds went to residential, insurance, energy, SFR, climate and commercial proptech companies.

The Market in a Nut Shell: The proptech industry had its best week in three weeks as mid and late-stage investments rallied. Venture capital investments in proptech surged 116.43%, with 31% of all capital allocation going to companies raising a Series B or greater.

Why Does This Matter?

This week was a big week for climate 🌿 tech. As funding for companies in climate and decarbonization continues to gain momentum, experts in the industry think that the sector may be partly resistant to the economic headwinds faced by tech stocks and venture capital investors.

What do the numbers look like?

Venture capital and private equity investment held steady at $12 billion in the second quarter from a year earlier, according to BloombergNEF. The data was in line with CRETI Climate Tech Venture Index. According to data by CRETI, $28 billion was invested in the first half of 2022, a 47% increase during H1 2021. In a review of six climate tech-related sectors, the second quarter spanned a range of winners, including renewable ♻️ energy, EV 🔋 manufacturing, and nuclear ☢️ tech startups.

What Does This Mean For Proptech?

If that wasn't enough to get you financially excited, Fifth Wall, the largest fund in proptech, closed a half-billion-dollar climate fund to decarbonize global real estate. While half a billion seems like a lot, the figure is only a drop in the bucket 🪣 compared to the $18 trillion expenditure to decarbonize commercial buildings, according to Brendan Wallace, co-founder and managing partner of Fifth Wall.

However, the biggest opportunity ahead for proptech companies and entrepreneurs is retrofitting aging infrastructure and legacy buildings. Based on our analysis of the med tech and life sciences sector, we anticipate hardware and software-enabled tech solutions to increase as institutional and large real estate organizations race to decarbonize their assets. “It’s about to become a retrofitting industry,” said Brendan Wallace, co-founder and managing partner of Fifth Wall, in a recent interview with CNBC.

CRETI Venture Capital Index

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.

TOGETHER WITH CRETECH

Where Global Real Estate Trailblazers Meet, Speak, and Leap into the Future
CREtech, the largest international community of professionals devoted to technological innovation in the real estate sector, announced today that speakers from Blackstone, Hines, Ivanhoe Cambridge and Tishman Speyer will join the speaker lineup for CREtech’s flagship event and largest real estate technology conference, CREtech New York, taking place this October 12-13.

Notable Rounds of Funding

  • July 19, 2022 — Casavo, a Milan, Italy-based ibuying company, raised a $410 million Series D & Debt round. The venture round was led by Exor with investments from Neva SGR (Intesa Sanpaolo Group), Endeavor Catalyst, Hambro Perks, Fuse Ventures Partners, and angel investor Sébastien de Lafond (founder of MeilleursAgents), Greenoaks, Project A Ventures, 360 Capital, P101 SGR, Picus Capital and Bonsai Partners. Intesa Sanpaolo (IMI Corporate & Investment Banking Division), Goldman Sachs and D.E. Shaw & Co provided the debt.

  • July 19, 2022 — Zesty.ai, an Oakland, CA-based AI-enabled property analytics and risk platform for real estate insurance, raised a $33 million Series B led by Brex and Centana Growth Partners.

  • July 19, 2022 — Sympower, an Amsterdam-based energy service company, raised a $22.4 million Venture Round led by Activate Capital Partners with investments from Rockstart, Expon Capital, Rubio Impact Ventures, and PDENH.

 
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