Proptech Venture Funding Breaks Real Estate Tech Industry Record
The Center for Real Estate Technology & Innovation (creti.org), the real estate technology industry’s think tank and venture network released the 2021 Real Estate Tech Venture Funding Report on venture capital investments in private real estate technology companies.
Venture capital investments in real estate tech returned to pre-pandemic levels. In 2021, $32 billion was invested in real estate tech companies, a 28% increase in funding since 2020 and 3.23% increase compared to 2019.
"Proptech is now a household name in both the public and private equity markets," said Zach Aarons, Co-Founder, and General Partner at Metaprop. "The cat's out of the bag. The industry is truly global and adoption is accelerating very quickly. We have definitely experienced some choppiness in the public equity markets as the sector reaches a maturation point and analysts realize that not all businesses within the proptech sector should be valued the same way."
The report indexed and analyzed venture investments across the greater real estate industry, including commercial, construction, residential, multifamily, and other asset classes and real estate services, including brokerage and management.
Throughout the year the market continued to gain momentum in funding and showed signs of evolution as venture capital investments shifted from early-stage to mid and late-stage companies.
“Following a year of uncertainty the venture capital and real estate tech entrepreneur market is back in a meaningful way,” said Ashkán Zandieh, Chair at the Center for Real Estate Technology & Innovation. "The continued growth of the sector has seen new investors across multiple stages enter the market, including private equity groups and institutional organizations."
The increased flow of capital is only one of the signals of the rising real estate tech wave. In a review of investments by sector, 49% of global funding went to residential tech companies, while commercial received 7.6% of total funding.
"2021 was the year of validation and consolidation. Multiple categories saw SPACs and strategic acquisitions took place," says Vince Cicciarelli, VP and Partner at Lincoln Property Ventures. "The cordial introductions are over and now everyone is off to the races in major categories that have emerged."
The Center for Real Estate Technology & Innovation is a non-bias think tank in real estate technology. We provide non-bias and metric-based insights on real estate technology and venture capital for technology investors, entrepreneurs, professionals in the greater real estate industry.