Weekly Proptech: Friday, September 23, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — $155 million was invested across 17 companies at a median funding amount of $5 million. Some of the largest funding rounds went to multifamily, property management, decarbonization, and other proptech companies.

Funding in a Nut Shell: Venture capital investments decreased by 46.9 percent in a week-over-week analysis of proptech capital allocation. Seed stage investments represented 32.0 percent of total investments, a 39 percent increase 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 residential real estate industry.

Entering 2022, the red hot 🔥 real estate industry has been a focus of the Federal Reserve. Today, it's all about The Federal Reserve and Central Banks 🏦.

In the US 🇺🇸, the lack of supply and pandemic-specific factors have driven housing prices to record highs. Canada's 🇨🇦 red hot housing market has also been in overdrive as housing affordability sinks. Similar to the US, there aren't enough homes for sale to meet demand. In an effort to tame prices, Canada is freezing out foreign homebuyers for two years. However, the cost of housing only sheds light on one side of the problem.

Unlike other industries, real estate 🏡 has not experienced large-scale productivity gains. The cost of construction 🏗 hasn't been getting cheaper, regulation around housing is getting more complex and politically charged, and the financial markets has been a relatively closed ecosystem.

What Does This Mean For PropTech?

In an analysis of real estate tech companies on the 2022 CRETI Residential Real Estate Index, $3.4 billion has been invested in residential real estate-based proptech companies across 200 rounds of financing globally.

Veev, a San Mateo-based construction tech company that reinvents the way homes are built and experienced, SimpliSafe, a Boston-based home security company, and OHouse, a Seoul-based lifestyle platform to easily source and purchase goods for their homes, raised the top three largest equity rounds, year to date.

Despite the total allocation of capital, the market is red hot, and opportunities remain across multiple sectors, including debt-equity, acquisitions, life-style based arrangements, and more. An area that seems to be showing signs of maturity based on funding activity is "tech-enabled" services in the residential industry.

IN PARTNERSHIP WITH CRETECH

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.

Experience the largest trade show, most strategic networking opportunities, and world-class content covering every industry food group including office, multifamily, single-family, construction, retail, logistics, and hospitality in a fast-paced, electric environment.

Notable Rounds of Funding

  • September 20, 2022 — DoorLoop, a property management platform that enables clients to screen tenants, collect rent, and manage accounting services, raised a $20 million Series A from ASG.

  • September 20, 2022 — Enact, a solar storage company for the real estate industry, raised a $11.5 million Series A round led by Energy Growth Momentum with investments from 4 other investors.

  • September 19, 2022 — CoverTree, an insurance tech MGA focused on mid-America and manufactured homes, raised a $10 million Seed round co-led by AV8 Ventures and Distributed Ventures with investments from 4 other investors.

 
CRETI https://cretiventures.com
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Weekly Proptech: Friday, September 16, 2022