Weekly Proptech: Friday, October 7, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — $101 million was invested across 15 companies at a median funding amount of $3.8 million. Some of the largest funding rounds went to residential, property management, asset management, and other proptech companies.

Funding in a Nut Shell: Proptech's two-week surge came to an end this week as venture capital investments took a nose dive. Investments in proptech companies had been riding a wave after a relatively quiet summer, but at the start of Q4, investment decreased by 55.1 percent.

CRETI PROPTECH VENTURE INDEX

State of the Market.

This week we took a look at the state of venture capital investments in Q3 2022.

Global venture capital investments dramatically pulled back in Q3. Venture and growth investors in private real estate technology companies scaled back their investments as the slump in the public markets stretched into the third quarter.

Venture funding for the third quarter of 2022 totaled $3.5 billion, down from $7.9 billion (-57%) year over year and from $5.7 billion (-39.4%) quarter over quarter. While there were bright spots in capital allocation, in aggregate, it wasn't enough as all stages of funding took a hit.

What Does This Mean For PropTech?

The remainder of the year looks bleak, at best, for the proptech industry. Entrepreneurs that were aiming to raise capital will encounter a tough road ahead as investors and LPs, continue to grapple with current market conditions.


While there is still hope for early-stage entrepreneurs and the seed stage, overall funding has slumped across the board. Additionally, it is unclear if the market has hit rock bottom—as the pressure in the venture funding markets continues to build. It is anticipated that the build-up of dry powder from firms that raised in 2021 and early 2022 will create new investment pressures as we move into 2023.

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

  • October 2, 2022 — Bren, an AI-based self-powered smart sensor for steam monitoring, raised a $12 million Seed round from Alesta Yatırım.

  • October 4, 2022 — Spleet, a financial services solutions for renters, raised a $2.6 million Seed round led by MaC Venture Capital with investments from Metaprop, Plug and Play, and 9 other investors.

  • October 8, 2022 — PropHero, an online real estate investment platform, raised a $8 million Seed round led by Samaipata and Fifth Wall with investments from Jelix Ventures and AfterWork Ventures.

 
CRETI https://cretiventures.com
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