Commercial Search Category Leads Real Estate Technology Funding

Last quarter we looked at real estate technology funding trends and uncovered that investors are placing bigger bets on fewer companies. This quarter we are performing a deeper examination on our real estate tech research platform to compare funding by category. Our analysis reveals two key takeaways:

  • The Commercial Search category leads the sector in Q2 funding
  • The Commercial Search category also leads the sector in all-time funding

We’ll explain these key takeaways with some graphics and discussions below.

The Commercial Search Category Leads Real Estate Technology In Q2 Funding

To start off, let’s review the amount of funding raised this quarter by each category within real estate technology.

real-estate-technology-current-quarter-category-funding
Real Estate Technology Current Quarter Category Funding

The above graphic shows that the Commercial Search category leads the sector in Q2 funding with almost $1.1B. Its funding is 40% higher than that in the next category, Home Services at $0.8B.

Commercial Search companies comprise of tools that help consumers or businesses find commercial real estate for rent or sale. Examples include shared working spaces and real estate search engines. Some sample companies include Kr Space, RocketSpace, WeWork, and UrWork.

So we’ve observed how different real estate technology categories stack up in their Q2 funding. But how do these categories’ funding compare with each other historically? Let’s investigate that in the next section.

The Commercial Search Category Also Leads in All-Time Funding

The graph below shows the all-time funding for different real estate technology categories. The Q2 funding and growth rates of these categories are also highlighted.

real-estate-technology-total-category-funding
Real Estate Technology Total Category Funding

The bar graph indicates that the Commercial Search category also leads the sector in total funding at $11B. This is 30% higher than the funding in the next category–Life, Home, P&C Insurance at $8.4B.

In addition, the line graph shows that the Home Services category saw the highest growth rate in Q2 at 19%.

Conclusion

The Commercial Search category leads real estate technology in not only Q2 funding but in all-time funding as well. It’ll be interesting to see if any other real estate technology categories catch up in the rest of 2018.

To learn more about our complete real estate technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Real Estate Technology Startup Highlights  – Q2 2018

Here is our Q2 2018 summary report on the real estate technology startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete real estate technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Venture Scanner Sector Maps (Part 2 of 2)

Our sector maps are snapshots of emerging technology sectors. They show what the different categories in a sector are and how many startups are within each category. They also present a small sampling of the current startups that are innovating in each category.

Last week, we kicked off our sector map update with Part 1. You can read that blog post here.

This post is the second of a two-part series. Below you will find sector maps for Artificial Intelligence, Internet of Things, Marketing Technology, Real Estate Technology, Retail Technology, Security Technology, Transportation Technology, and Virtual Reality.

Artificial Intelligence: 13 categories, 2161 companies, $32B in funding

Artificial Intelligence Sector Map
Artificial Intelligence Sector Map

Internet of Things: 20 categories, 2151 companies, $52B in funding

Internet of Things Sector Map
Internet of Things Sector Map

Marketing Technology: 15 categories, 1771 companies, $33B in funding

Marketing Technology Sector Map
Marketing Technology Sector Map

Real Estate Technology: 12 categories, 1649 companies, $48B in funding

Real Estate Technology Sector Map
Real Estate Technology Sector Map

Retail Technology: 21 categories, 1746 companies, $59B in funding

Retail Technology Sector Map
Retail Technology Sector Map

Security Technology: 14 categories, 1063 companies, $25B in funding

Security Technology Sector Map
Security Technology Sector Map

Transportation Technology: 17 categories, 1238 companies, $117B in funding

Transportation Technology Sector Map
Transportation Technology Sector Map

Virtual Reality: 13 categories, 750 companies, $10B in funding

Virtual Reality Sector Map
Virtual Reality Sector Map

To learn more about our complete report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Real Estate Technology Investors Investing More in Fewer Deals

As we have previously shared, the Real Estate Technology (proptech) startup sector is seeing a lot of momentum. How have its funding trends evolved over time? On our Real Estate Technology research platform, we have analyzed the data through 2017 and can conclude that investments into the Real Estate Technology market have become fewer in frequency but larger in amount.

We have come to this conclusion from the following three takeaways:

  • Total funding amounts are seeing strong growth
  • Number of funding events is seeing a decline
  • Average funding per deal is increasing

We will illustrate these takeaways through a series of graphics.

Real Estate Technology Funding Amounts Seeing Strong Growth

Let’s start off by examining the annual real estate tech funding amounts, stacked by quarters.

Real Estate Technology Funding by Quarter
Real Estate Technology Funding by Quarter

This graph illustrates that real estate tech funding saw robust growth at the annual level. Specifically, the funding in 2017 was 162% of that in 2016. In addition, the CAGR in funding amounts from 2012 to 2017 is an impressive 63%.

We have seen that real estate tech funding is showing strong growth, but what about the number of deals?

Real Estate Technology Funding Events Declining

The following graph shows us the annual number of Real Estate Technology funding events, stacked by quarters.

Real Estate Technology Funding Count by Quarter
Real Estate Technology Funding Count by Quarter

The above graphic illustrates that the number of real estate tech funding events saw a healthy upward trend from 2011 to 2015 and declined thereafter. The CAGR in funding events from 2012 to 2017 is still positive at 16%, despite the number of funding events dropping by 76% in 2017 vs. 2016.

We have seen that real estate tech funding amounts are growing steadily but the number of funding events is seeing a decline. Let’s see if the trend in average deal size provides any further clues.

Average Real Estate Technology Funding Deal Size Increasing

The following graph shows the average funding per Real Estate Technology deal over different quarters from 2011 to 2017, as well as the trendline.

Real Estate Technology Average Funding Event Size Over Time
Real Estate Technology Average Funding Event Size Over Time

As we expected, this graphic indicates that the average Real Estate Technology funding per deal has experienced consistent growth over the past few years. The trendline shows that from Q3 2011 to Q4 2017, the average deal size has grown by approximately 350%. This stable upward trend in average deal size demonstrates that while the number of deals has dropped, the investments in Real Estate Technology have indeed become more substantial over time.

Conclusion: Real Estate Technology Investors Are Investing More in Fewer Deals

In summary, we have seen from the above graphics that real estate tech funding amounts experienced strong growth at the annual level, yet its deal count has seen a decline in recent years. Moreover, the average funding per deal has been increasing consistently over time. These takeaways lead us to conclude that the investors in Real Estate Technology are investing more money yet into fewer funding deals. It’ll be interesting to see if this trend continues in 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Real Estate Technology research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Real Estate Technology Sector Overview – Q4 2017

The real estate technology (proptech) sector has seen a lot of funding and exit activity over the past few years. Yet what are the different components of proptech and how do they make up this startup ecosystem? On our real estate technology research platform, we have classified the companies in the sector into functional categories. This blog post aims to examine these categories and how they compare with one another through a series of graphics.

IoT Home Is the Largest Real Estate Technology Category

Let’s start off by looking at the Logo Map for the real estate technology sector. As of January 2018, we have classified 1,613 real estate technology startups into 12 categories which collectively raised $46 billion in funding. The Logo Map highlights the number of companies in each category and a random sampling of these companies.

Real Estate Technology Logo Map
Real Estate Technology Logo Map

We can see from the Logo Map above that IoT Home is the largest real estate technology category with 329 companies. This category is comprised of companies that provide Internet of Things (IoT) devices focused on the residential real estate segment. Some example companies in this category include Ayla Networks, Nest Labs, Dojo Labs, and Entia.

We have seen what the different categories in real estate technology are and how many companies are within each category. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Most of the Real Estate Technology Categories Are Pioneers

Our Innovation Quadrant for the real estate technology sector divides the categories within the sector into four different quadrants according to their average funding and average age. The Heavyweights are the categories with companies that have reached maturity with significant financing. The Established are those that have reached maturity with less financing. The Disruptors are less mature but with significant financing. The Pioneers are less mature and with earlier stages of financing.

Real Estate Technology Innovation Quadrant
Real Estate Technology Innovation Quadrant

We can see from our Innovation Quadrant above that most of the categories within real estate technology belong in the Pioneers quadrant. The Commercial Search category has raised more funding and thus made its way into the Disruptor quadrant. Construction Management and Facility Management are the most mature categories with less funding. Life, Home, P&C Insurance category is in the Heavyweights quadrant for having reached maturity with significant financing.

We’ve now seen how the real estate technology sector is categorized and the relative stages of innovation for those categories. How do these categories stack up against one another in a holistic view? Let’s look at the Total Funding and Company Count Graph.

Commercial Search Is the Best Funded Real Estate Technology Category

The graph below shows the total amount of venture funding and company count in each real estate technology category.

Real Estate Technology Total Funding and Company Count by Category
Real Estate Technology Total Funding and Company Count by Category

We can see from the graph above that while IoT Home has the most companies in the real estate technology sector with 329 companies, it’s the Commercial Search category that leads the sector in total funding with $8.5 billion. The Commercial Search category is comprised of companies that help consumers and businesses find commercial real estate for rent and sale. Some example companies in this category include WeWork, 42Floors, CoworkingON, and PivotDesk.

Conclusion: Most Real Estate Technology Categories Have Large Growth Potential

The graphics above indicate that most of the real estate technology categories are pioneers and show large potential for growth and development. In addition, the sector is bustling with a good number of IoT Home companies. Yet the real estate search companies, including Commercial Search, Short-Term Search, and Long-Term Search, are receiving the lion’s share of the venture funding in the market. It will be interesting to see if this trend continues in 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Real Estate Technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Real Estate Technology Startup Highlights  – Q4 2017

Here is our Q4 2017 summary report on the Real Estate Technology (proptech) startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete real estate technology (proptech) report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com

Real Estate Technology Funding Trends – Q3 2017

The following graphs highlight recent trends in Real Estate Technology startup funding activity. The graphics include data through June 2017.

Total Real Estate Technology Funding by Year
Total Real Estate Technology Funding by Year

The above graph summarizes the total funding raised by Real Estate Tech startups for each year. 2014 has the most funding to date at just over $8B.

Real Estate Technology Funding by Vintage Year
Real Estate Technology Funding by Vintage Year

The above graph summarizes the total amount of funding raised by Real Estate Tech companies founded in a certain year. Companies founded in 2010 have raised the most funding at around $6B.

We are currently tracking 1550 Real Estate Tech companies in 12 categories across 62 countries, with a total of $44.6 Billion in funding. Click here to learn more about the full Real Estate Technology market report.