Weekly Proptech: Friday, June 17, 2022

Written By CRETI
 
 
 

This Week in Proptech

$623 million was invested across 27 companies at a median funding amount of $10 million. Some of the largest rounds of funding went to parking and mobility, construction, residential, multifamily, smart building technology, and more.

Why Does This Matter?

The central bank 🏦 hiked interest rates by a colossal 75 basis points (bps) yesterday, which is the biggest rate increase since 1994. Through interest rate increases, the Fed is attempting to raise the cost to borrow money 💵, slow economic activity, and bring down inflation 💸 that’s ripping at 40-year-highs.

What Does This Mean For Proptech?

Hiking interest rates this fast will be painful for the global economy and likely put some people out of work. With job cuts already underway, including in the real estate and proptech industry, many experts are predicting that the Fed projected that it would hike rates by another 175 bps by the end of the year.

What does this specifically mean for proptech? Well…if you’re a rent-to-own or alternative investment startup across residential or commercial, now is the time to be a little nervous 😬. The borrowing cost has made generating a return on new investments more challenging.

Proptech companies in the valuation and appraisal businesses are partying like its 1999 💃🕺🏾. If history has tough us anything, as the economy goes, so does special servicing and LTV’s (loan-to-value) and CTD’s (cash-to-debt) across residential and commercial real estate.

CRETI Venture Capital Index

CRETI Proptech Index
The CRETI Proptech Index is a private market real estate technology index tracking the financial performance of the proptech industry. It is the most followed proptech venture capital indices, globally. Contact us to learn more.

TOGETHER WITH Moderne Ventures

Moderne Ventures is now accepting applications for its 2022 Midyear Passport class!

The Moderne Passport is a 6-month industry immersion program. We help proptech companies refine and execute their go-to-market strategies, connect with members of the Moderne Network™ - access to 700 corporations and executives in the real estate industry, and provide mentorship, pilot, and investment opportunities.

Notable Rounds of Funding

  • June 15, 2022 — Metropolis, a Los Angeles, CA-based AI and computer vision start-up built to modernize parking and empower the future of mobility company, raised a $167 million Series B led by 3L Capital and Assembly Ventures with investments from Dragoneer Investment Group, Moving Capital, Eldridge, Silver Lake, UP Partners, and Dan Doctoroff, CEO at Sidewalk Labs.

  • June 13, 2022 — Housecall Pro, a Denver, CO-based developer of mobile software platform used to connect back-end business operations and homeowners, raised a $65 million Venture Round.

  • June 16, 2022 — HomeLight, a San Francisco, CA-based real estate platform where users can buy or sell homes, raised a $155 million Debt Round ($55 million) and Series D ($60 million) from Zeev Ventures.

 
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