Weekly Proptech: Friday, December 16, 2022

Written By CRETI
 
 
 

This Week in Proptech

This Week in Proptech — The annual proptech venture capital report by CRETI was released along with the top proptech investors of 2022.  But before we say goodbye to 2022 in our final Weekly Proptech newsletter of the year, let's recap what happened in proptech venture capital in a year filled with economic headwinds.

In what has been a year of cautious capitalism, venture capital-backed proptech companies raised $19.8 billion, down 38% from 2021.  Some of the largest funding rounds went to residential single-family construction, urban infrastructure, multifamily, ibuying, and other real estate categories.

Funding in a Nut Shell:  In a quarterly analysis, dollar volume decreased by an average of 23%, quarter over quarter.  Simultaneously, weekly median funding fell from $558 million in 2021 to $382 million, representing a 32% decline in weekly funding.

CRETI PROPTECH VENTURE INDEX

State of the Market

Deal volume, or funding rounds, was off significantly year over year, continuing a slide as the industry grapples with valuations. While deal volume was down, late-stage deals were down significantly, driven by a lack of mega-rounds.  Globally, late-stage deal volume, Series C equity rounds, and greater, in proptech companies declined by 19.7% from 193 in 2021 to 155 in 2022.  

What Does This Mean For PropTech?

The theme entering 2023 will continue to be cautious capitalism.  As long as monetary policies remain in flux, the macro real estate industry, proptech investors, and the greater real estate technology industry will deal with some rough and choppy seas.  While some investors and entrepreneurs have experienced economic headwinds, many have not, which will drive proptech companies toward consolidation or insolvency. 

However, sharks are circling.  While consolidation is inevitable and, in some cases, welcomed for early to late-stage companies, the name of the game for entrepreneurs in 2023 is survival.  As long as proptech companies are able to remain afloat, they should survive current market conditions.

Notable Rounds of Funding in 2022

  • Veev raised a $400 million Series D round on February 24, 2022.  The round was led by Bond with investments from JLL Spark, Fifth Wall, Zeev Ventures, and LenX. 
     

  • Sidewalk Infrastructure Partners raised a $400 million Series A round on February 2, 2022.  The round was led by StepStone Group.
     

  • Casavo raised a $400 million Series D & Debt round on July 19, 2022.  The round was led by Exor Seeds with investments from Endeavor Catalyst, Picus Capital, Project A Ventures, 360 Capital, Hambro Perks, Greenoaks, and other investors.
     

  • Flow raised a $350 million Venture round on August 15, 2022.  The round was led by Andreessen Horowitz.
     

  • Roofstock raised a $240 million Series D round on March 10, 2022.  The round was led by SoftBank Vision Fund with investments from Lightspeed Venture Partners, FJ Labs, Khosla Ventures, Bain Capital Ventures, Citi Ventures, Moving Capital, and other investors.

 
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Weekly Proptech: Friday, December 9, 2022