Real Estate Technology Report Highlights  – Q4 2018

Here is our Q4 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 dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Real Estate Technology Startup Highlights  – Q3 2018

Here is our Q3 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.

Mid-Year Real Estate Technology Exits Analysis

Our latest quarterly update for real estate technology highlighted the most recent activity in the sector. Now, with over half the year complete, we’re performing a mid-year status check on how exits in the space are shaping up.

Based on analysis on our real estate technology research platform, we see that exit activity in the first half of 2018 is slightly down from 2017.

2018 Mid-Year Real Estate Technology Exit Activity Lower Than 2017 But Higher Than 2016

Let’s take a closer look at the number of real estate technology exit events by year.

real-estate-technology-exits-by-year
Real Estate Technology Exits by Quarter

The above graphic shows 20 exits in the first half of 2018. For the past three years, Q3 and Q4 accounted for 57% of total exit events on average. If that trend holds, 2018 exits will finish the year slightly lower than 2017, but higher than 2016. We’ll see if the second half of the year changes this trend!

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.

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.