The following graph summarizes the investor activity in the Real Estate Technology space. Please note these graphics are made using 2016 data through October.
The above graph summarizes the total funding raised by Real Estate Technology startups for each year. 2014 is the best year so far with over $7.9B in funding. 2015 comes in at second place with just around $6.4B raised to date.
Our Innovation Quadrant provides a snapshot of the average funding and average age for the different Real Estate Technology categories and how they compare with one another.
- Heavyweights: Categories with high average funding and high average age. These categories are comprised of companies that have reached maturity with significant financing.
- Established: Categories with low average funding and high average age. These categories are comprised of companies that have reached maturity with less financing.
- Disruptors: Categories with high average funding and low average age. These categories are comprised of companies that are less mature with significant financing.
- Pioneers: Categories with low average funding and low average age. These categories are comprised of companies that are less mature with earlier stages of financing.
The definitions of the Real Estate Technology categories represented in the above Innovation Quadrant are as follows:
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The analyses below summarize where Real Estate Technology innovations are occurring.
The above map shows the number of Real Estate Technology companies located in different countries. The United States ranks as the top country with over 673 companies.
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We cover many emerging markets in the startup ecosystem. We have previously shared a series of posts that summarized Financial Technology, Internet of Things, Bitcoin, Artificial Intelligence, and MarTech in six visuals. This week, we do the same with Real Estate Technology, but with 10 visuals.
At this time, we are tracking 679 Real Estate Technology companies across 9 categories, with a combined funding amount of $12.1 billion. To see all of our Real Estate Tech related posts, click here!
The ten Real Estate Tech visuals below help make sense of this dynamic market:
- Market Overview: Breakdown of Real Estate Tech into categories.
- Number of Companies Per Category: Bar graph summarizing the number of companies in each Real Estate Tech category.
- Median Funding By Category: Bar graph summarizing median funding per Real Estate Tech category.
- Venture Funding in Real Estate Tech: Graph comparing total venture funding in Real Estate Tech to the number of companies in each category.
- Global Breakdown of Real Estate Tech: Heat map indicating where Real Estate Tech companies exist.
- Median Age of Real Estate Tech Categories: Bar graph of each Real Estate Tech category by median age.
- Founding Date Distribution: Bar graph indicating the years in which Real Estate Tech startups were founded.
- Funding by Vintage Year: Bar graph that indicates the level of funding in Real Estate Tech startups by vintage year.
- Company Headcount Distribution: Bar graph distributing the number of companies in different headcount ranges.
- Top Investors in Real Estate Tech: Bar graph indicating which investors invest in Real Estate Tech most frequently.
1. Real Estate Technology Market Overview
Property Management: Technologies which help in the day-to-day operations of a building. Examples include approving tenants (background screening), electronic payment of rent, and maintenance.
Construction Management: Technologies which help with the construction of new buildings. Examples include construction visualization, project management, and management of documentation.
Facility Management: Technologies focused on building efficiency and long term sustainability, from large structures to individual home units. Examples include quantifying the building (energy usage, water usage, etc.), making buildings more efficient, and building inspections.
Portfolio Management: Technologies real estate investors use to help determine their investment strategies. Examples include property data trackers at the regional and local level, information on REITs, and real estate crowdfunding.
Home Services: Technologies that support tenants in the management of their home. Examples include cleaning, renovation management, and postal services.
Home/Apartment Search: Consumer tools that aid in the process of finding both short term and long term residences.
Real Estate Agent Tools: Technologies that both help real estate agents do their jobs and technologies that effectively automate it.
Indoor Mapping: Companies that help create indoor models of real estate.
IoT Home: Internet of Things category focused on the residential segment. Solutions include home security, automation, energy management, etc.
2. Number of Companies Per Category
The bar graph above summarizes the number of companies in each Real Estate Tech category to show which are dominating the current market. Currently, the IoT Home category is leading the way with a total of 161 companies, followed by Portfolio Management with 120 companies.
3. Median Funding By Category
The bar graph above summarizes the median company funding per Real Estate Tech category. Again, the IoT Home category leads the way with a median of $19M per funded company. The IoT Home category is focused on the residential segment. Solutions include home security, automation, energy management, etc..
4. Venture Investing in Real Estate Technology
The graph above compares total venture funding in Real Estate Tech categories to the number of companies in each category. While Real Estate Search has the most funding at over $6B, it is IoT Home, Construction Management, and Portfolio Management that have the most traction in total startups. It’ll be interesting to see if funding in these categories grows in 2016.
5. Global Breakdown of Real Estate Technology
The following infographic is an updated heat map indicating where Real Estate Tech startups exist across 45 countries. Currently, the United States is leading the way with 450 companies. The United Kingdom is in second with 35 companies followed by Canada with 31.
6. Median Age of Real Estate Tech Categories
The bar graph above summarizes Real Estate Tech by median age of each category. The Construction Management and Facility Management categories are the most mature categories at a median age of 8 years, while IoT Home, Portfolio Management, and Home Services are the most emerging with a median age of 1 year.
7. Founding Date Distribution
The bar graph above shows the distribution of years in which Real Estate Tech startups were founded. Over 50% Real Estate Tech startups were founded after 2011, while only 12% of the companies were founded before 2001
8. Funding By Vintage Year
The bar graph above shows the level of funding in Real Estate Tech by vintage year. Real Estate startups founded between 2007–2008 have received $5.2 billion in funding.
9. Real Estate Company Headcount Distribution
The bar graph above shows the distribution of employee headcount among Real Estate startups. Nearly half of Real Estate Tech companies are startups with less than 10 employees, indicating that this is in the early stages of innovation.
10. Top Investors in Real Estate Technology
The graph above summarizes which investors invest in Real Estate Tech most frequently. Currently, Y Combinator leads the way with 18 investments, followed by Accel Partners and 500 Startups with 16 investments.
As Real Estate Technology continues to develop, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.
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