Proptech funding hits record levels

Investor appetite for proptech startups remains solid.

Proptech (property technology) is shaping up to be a single source of truth that all real estate and construction information is generated from, and when blended with modern methods of construction (MMC), the argument for both investors and end-users to embrace future construction now is compelling.

The investment in Proptech is on vivid display with global investor enthusiasm for startups enjoying a bumper 2022 H1 according to a recently published report by The Center For Real Estate Technology & Innovation (CRETI).

According to the CRETI report, venture capital investments in private real estate technology companies outperformed the global venture capital market. In H1 2022, US$13.1 billion was invested in real estate technology companies, including commercial, construction, residential, industrial, and other real estate sectors.

Venture funding increased by 5.65% in comparison to H1 2021, a growth of US$700 million of additional capital injected into the real estate tech ecosystem.

“It remains to be seen, but at these levels, the proptech industry is on pace to match or set a new record in venture funding,” said Ashkán Zandieh, co-chair at CRETI. “While I’m bullish on the financial health of the private proptech venture market, it’s worth noting that there is some choppiness in the market which makes landing a little rough for companies across the board.”

As the two most popular sectors, industrial and residential each accounted for 26% of total investment.

Though still popular among VCs, residential housing was far less prominent in H1 2022 than it was last year when nearly half (49.1%) of all proptech funding went into the sector.

The report credited the Biden administration’s focus on infrastructure – which led to the passage of a US$1.2tn infrastructure bill in November – for fuelling growth in industrial and construction tech this year.


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