Weekly Proptech: Friday, September 16, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — $292 million was invested across 11 companies at a median funding amount of $11 million. Some of the largest funding rounds went to security, residential, property management, commercial real estate, multifamily, and other proptech companies.

Funding in a Nut Shell: Venture capital investments increased by 29.8 percent in a week-over-week analysis of proptech capital allocation. Seed stage investments represented 23.0 percent of total investments, an 8 percent decrease in weekly Seed stage funding.

CRETI PROPTECH VENTURE INDEX

Why Does This Matter?

This week we took a look at real estate technology and the multifamily industry to better understand the future of tech-enabled multifamily.

In an analysis of real estate tech companies on the 2022 CRETI Multifamily Index, year to date, $833 million has been invested in multifamily-based proptech companies. Seed stage investments represented 25 percent of total capital allocation.

90 percent of total capital was allocated to the top ten largest rounds in 2022, 30 percent of capital went to alternative apartment (hospitality-enabled) companies, including Landing, Placemakr, and Frontdesk.

What Does This Mean For PropTech?

The continued rise of multifamily-based proptech solutions has seen a surge in activity from technology investors. Opco-Propco business models continue to receive the lion's share of venture capital, and alternative leasing technology companies, ranging from tech-enabled leasing to tenant-centric financial solutions, have gained momentum in the wake of the pandemic.

In terms of the financial performance of early-stage multifamily technology companies, year to date, $18 million has been invested in Seed and Pre-Seed, representing 2.1 percent of capital allocation. Seed and Pre-Seed investments decreased by 11 percent compared to the same time in 2021.

Despite the total allocation of capital, the market is far from mature, and opportunities remain across multiple sectors.

INSIGHTS IN PARTNERSHIP WITH IREM

The real estate industry has undergone several years of rapid transformation. Property managers across the multifamily and single-family rental segments have faced rapidly changing conditions. One of the main results for the profession has been that emerging trends have quickly become table stakes in today’s residential market. From macro-level economics to the shifting expectations of the resident experience, today’s successful managers are adapting and becoming more tech-savvy and resilient, serving as stewards of innovation in residential property management.

Notable Rounds of Funding

  • September 14, 2022 — Kojo, a materials procurement platform for general contractors, raised a $39 million Series D led by Battery Ventures with investments from 6 other investors.

  • September 13, 2022 — Frontdesk, a short-term stay company, raised a $13 million Series B round led by Stormbreaker Ventures with investments from 9 other investors.

  • September 13, 2022 — Roofr, a marketplace for roofing that utilizes satellite imagery for instant roofing estimates, raised a $12 million Series A led by Vertical Venture Partners.

EVENTS

Join us in New York City on October 12th and 13th for two days of the most exciting in-person event in the world of real estate technology and innovation. No other event brings together so many landlords, asset managers, brokerages, construction companies, tech startups, venture capitals, thought-leaders, and more all under one massive roof.

 
CRETI https://cretiventures.com
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