Weekly Proptech: Friday, October 14, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — $145 million was invested across 11 companies at a median funding amount of $9.7 million. Some of the largest funding rounds went to commercial real estate, construction, asset management, and other proptech companies.

Funding in a Nut Shell: Proptech is riding a two-week step up in funding, following a nose dive at the start of Q4. Capital allocation increased by 43.6 percent led by an increase in letter funding rounds.

CRETI PROPTECH VENTURE INDEX

State of the Market

This week we looked at the state of venture capital investments in Seed stage companies.

Venture capital investments in Seed stage proptech companies has been the most resilient sector in 2022. Dealmaking in early-stage companies has stayed at high levels throughout the year, despite a partial retreat from macroeconomic headwinds and a decline in tech stocks.

Throughout the first three quarters of 2022, venture funding in Seed stage companies totaled $1.1 billion, up 104.5 percent year-over-year. The surprising resilience of the Seed stage funding market comes as capital has continued to flood into early-stage companies by investors looking to invest in earlier rounds.

What Does This Mean For PropTech?

Proptech venture capitalists have braced for a downturn for much of 2022 following the sharp decline in valuations. The reversal has put financial scrutiny on proptech startups raising equity rounds.

Despite the overall decline in funding, many seed-stage companies are well-positioned to withstand the crunch as competition diminishes. Additionally, small investments and bridge rounds have become "in vogue" at the moment, with investors willing to write smaller checks across a larger pool of earlier investments.

Top 5 Takeaways from CREtech New York

CREtech New York was a hotbed of innovation, networking, and fundraising for the commercial real estate technology industry. Here are our top five takeaways from this year's CREtech New York 2022.

  • Trends in Multifamily Tech: The future of multifamily tech was more about multifamily than tech. According to the panelists, the future of multifamily is all about streamlined operations.

  • Logistics Tech Trends: The future of logistic technology was all about retail and transportation technology. Innovative business models are challenging the age-old adage, location, location, location.

  • Evolving the Real Estate Toolkit: Second Century Ventures showcased five of their newest diversified portfolio companies to represent the changing landscape of the commercial real estate industry and transactional brokerage.

  • The Future of PropTech for CRE Operators: A major takeaway on future CRE property operations was all about being upstream when it comes to tenant experience.

  • Global Venture Perspectives: The state of the global venture market, as we all know, is compressing. From high-interest rates to inflation, macroeconomic headwinds are challenging valuations and funding timelines.

Notable Rounds of Funding

  • October 10, 2022 — CrowdStreet, an online commercial real estate investment platform, raised a $43 million Series D led by Cypress Equities, Foulger-Pratt, The Dinerstein Companies, TIA Ventures with investments from 4 other companies.

  • October 11, 2022 — YardLink, a B2B procurement platform for the construction industry, raised a $17.5 million Series A led by Beringea with investments from 3 other investors.

  • October 11, 2022 — Isthara, a shared-living accommodations company, raised $10 million venture round Eagle Investments.

 
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