Weekly Proptech: Friday, August 19, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — $645 million was invested across 8 companies at a median funding amount of $20 million. Some of the largest funding rounds went to multifamily, ibuying, investment management, and property management proptech companies.

Proptech Venture Capital in a Nut Shell: This week, venture capital investments in proptech companies increased 205.7 percent. In fact, the median funding amount ballooned to $20 million.

Why Does This Matter?

The summer of proptech 2022 has been anything but beach parties and frosé. In fact, from June to August, venture capital investments in proptech companies have nearly been frozen stiff. From June to August, month to date, $3.715 billion has been invested in the sector, representing a 53.7 percent decrease in venture activity compared to 2021.

According to a study of 275 real estate technology investors and venture capitalists by the Center for Real Estate Technology & Innovation, mid and late-stage investments were anticipated to increase 59.94 percent in 2022, collectively. In fact, when asked how much capital survey respondents anticipated allocating in 2022, 35.7 percent responded $10 to $20 million, a 66.82 percent increase in capital allocation compared to the year prior.

What Does This Mean For PropTech?

"2022 will mark the beginning of the "installation phase" where tech first owners and operators will start to separate from the pack and gain a permanent advantage in serving their customers and the market," said Travis Connors, Co-Founder & General Partner, Building Ventures.

And he might be right. In fact, according to a survey of commercial real estate owners and managers by the Center for Real Estate Technology & Innovation, 20 percent were in the beginning stages of their "installation phase." Commercial real estate owners and managers were amongst the most active in proptech activity, with 91 percent of respondents, collectively, on-boarding tenant acquisition, experiential, and decarbonization solutions.

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.

EVENTS

The Great Automation of Industrial Real Estate
Industrial real estate is undergoing a massive transformation, with a raft of new technologies and innovations being implemented across the sector. These include robots in warehouses, integrations for drone delivery, and flexible space that allows for nimbler and more efficient use. Leaders from Prologis, now the largest industrial REIT in the world, and industrial flex-space provider Saltbox will talk about how new innovations are changing the landscape for industrial and where they may be headed in the future.

Notable Rounds of Funding

  • August 15, 2022 — Flow, an NYC-based rental real estate startup, raised a $350 million Venture Round from Andreessen Horowitz and Sibu Mahl.

  • August 16, 2022 — Guesty, a Tel Aviv-based property management platform that provides end-to-end property management software for short-term rentals, raised a $170 million Series E led by Apax Digital, MSD Partners, and Sixth Street with investments from Flashpoint and Viola Growth.

  • August 16, 2022 — Agora, a Tel Aviv-based modern investment management platform, raised a $20 million Series A from Aleph and Insight Partners.

 
CRETI https://cretiventures.com
Previous

Weekly Proptech: Friday, August 26, 2022
Next

Weekly Proptech: Friday, August 12, 2022