The way it began: In early 2020, capital flowed into actual property know-how corporations from enterprise corporations and institutional actual property corporations alike, hitting $4.25 billion in March alone.
The way it’s going: Proptech ended the 12 months with a complete of $23.8 billion of funding, down 25 p.c from the earlier 12 months, according to a report from the Heart for Actual Property Expertise and Innovation.
The pandemic helped enhance some sectors inside actual property know-how, together with corporations centered on digitizing in-person experiences or mediating our new on-line actuality, however general, capital pulled again amid the financial downturn and well being disaster.
The largest deal of the 12 months went to REEF Expertise, which raised $700 million from proptech’s personal Santa, the Japanese conglomerate SoftBank Group. The corporate manages a community of ghost kitchens and logistics hubs all through the nation, lots of which have been beforehand parking tons that REEF managed in its earlier life as ParkJockey.
The subsequent greatest offers went to fintech corporations Creditas and Higher.com, each of which provide on-line lending, with $255 million and $220 million, respectively.
Amid the broader downturn, nonetheless, residential actual property know-how emerged a winner, with $10.8 billion in whole funding, or 45 p.c of the general whole, a rise over the earlier 12 months. That included DIY residence enchancment platform ManoMano, which obtained $130 million in January, and home-buying market Orchard, which raised $69 million in September.
As well as, two late-stage residential tech corporations went public this 12 months by way of Particular Function Acquisition Firm (SPAC) mergers. Dwelling-buying market Opendoor merged with investor Chamath Palihapitiya’s SPAC, Social Capital Hedosophia II, in a $4.8 billion deal, and commenced buying and selling this week. And residential companies platform Porch, which introduced its merger in July, will start buying and selling this week as properly.
After residential, 27 p.c of the funding went to industrial actual property, 16.5 to development tech, and the remaining 11 p.c to all different sectors.
One different brilliant spot was a rise in funding for female-founded startups to a complete of $470 million. That’s a rise of 18 p.c, and nonetheless only a mind-boggling two p.c of the whole. That included $25 million for retail funding platform REX (the sanitized model of crowdfunding), and $50 million for restaurant reservation system SevenRooms.