Weekly Proptech: Friday, December 2, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — $513 million was invested across 13 companies at a median funding amount of $2.2 million. Some of the largest funding rounds went to flex-office, alternative design & construction, residential, finance, and other real estate technology categories.

Funding in a Nut Shell: This week, venture capital investments increased by 200 percent. The lion's share of funding activity, 58 percent, was led by Table Space, a flex-office solution provider located in India. More insights this week in Notable Funding Rounds.

CRETI PROPTECH VENTURE INDEX

State of the Market

This week we took a look at proptech venture capital investments in flex-office technology and coworking companies.

Since 2018, 277 flex-office technology and coworking companies have come to market. 25 and 26 percent of companies were founded in the Americas (North & South America) and Europe, respectively. Globally, 7 percent of companies founded since 2018 have closed operations.

Venture capital investments in flex-office companies founded between 2018-2022 (YTD) reached $502 million across 33 companies. 12 percent of companies founded received funding, while 50 percent of companies that received funding were located in the APAC region.

What Does This Mean For PropTech?

The pace of new flex-office technology and coworking companies has tremendously slowed since the highs of 2018. Since then, the total average of new flex-office and coworking companies has decreased by 57.9 percent. Funding has significantly slowed for new companies, as well. Across the 33 companies that were able to raise a venture round, year-over-year funding has decreased for new companies by 44.7 percent.

An analysis by CRETI found that the APAC region may have limited opportunities for entrepreneurs, flex-office, and coworking companies, compared to the west (Americas and Europe). While capital allocation into the sector has been more strategic, the APAC region represented 80 percent of total funding for new companies that raised.

Notable Rounds of Funding

  • Table Space raised a $300 million Private Equity round led by Hillhouse Capital Group

  • Rive raised a $24 million Series A round led by IDC Ventures.

  • Giraffe360 raised a $16 million Venture and Debt round led by Founders Fund with investments from HCVC, Hoxton Ventures, LAUNCHub Ventures, Change Ventures, and Columbia Lake Partners.

 
CRETI https://cretiventures.com
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