Weekly Proptech: Friday, August 12, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — $211 million was invested across 10 companies at a median funding amount of $5.8 million. Some of the largest funding rounds went to flex-office, residential, brokerage, industrial, and climate proptech companies.

Proptech Venture Capital in a Nut Shell: This week, venture capital investments in proptech companies increased by 45.5 percent. Early-stage Seed investing continues to rein reign supreme in the proptech industry at 30 percent.

Why Does This Matter?

$501 million was invested in virtual real estate in 2021, according to data from MetaMetric Solutions. However, this week Mark Cuban, owner of the Dallas Mavericks and Shark Tank billionaire investor, had some choice words about the virtual real estate industry, calling it “the dumbest shit ever,” according to a recent interview on the Altcoin Daily YouTube channel and he might not be wrong.

The metaverse is in the midst of a real estate meltdown. Virtual land prices plummeted 85 percent amidst waning interest rates. Sales volumes and average prices for virtual land continue to plunge as part of a broader slide in crypto, non-fungible token prices, and macroeconomic conditions.

What Does This Mean For PropTech?

Real estate in the metaverse has historically been viewed as the next frontier in the industry. Similar to the built world, "property" owners develop land by creating virtual storefronts and flip or lease to other investors or companies.

As the economic landscape in the built world continues to be a challenge, the limited market of the metaverse is losing its appeal.

However, despite the virtual real estate market crash, a June 2022 report by McKinsey predicts the industry to be a $5 trillion market by 2030.

CRETI PROPTECH VENTURE 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.

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Notable Rounds of Funding

  • August 9, 2022 — Oliver Space, a San Francisco-based home furnishing company, raised a $36 million Series B led by Union Grove Venture Partners with investments from U.S. Venture Partners, Mayfield Fund, LG Technology Ventures, Expa, Avenue Capital Group, and Abstract Ventures.

  • August 8, 2022 — Properly, a Toronto-based tech-enabled real estate brokerage, raised a $28 million Series B from Bain Capital Ventures, FJ Labs, Industry Ventures, Golden Ventures, Max Ventures, Alley Corp, Interplay, Intact Ventures, Prudence Holdings, and Parker89.

  • August 9, 2022 — OpenSpace, a San Francisco-based job site photo capture platform, raised a $9 million Series D from GreenPoint Partners and Taronga Group.

 
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