Real Estate Technology Funding in 2019 Projected To Approximately Match 2018

How is the funding environment shaping up for real estate technology in 2019? As we pass the mid-year mark, let’s see how the year-to-date metrics compare to the historical trends. The graph below shows real estate technology total funding by year, stacked by quarters.

Real Estate Technology Funding Over Time

As the graphic demonstrates, real estate technology has amassed $9.3B through Q1 and Q2 of this year. This amount represents 50% of the total funding in 2018, and 140% of the funding through Q2 in 2018. The top three funding events in Q2 2019 include a $300M round into Lemonade, a $261M round into LendInvest, and a $225M round into KLOOK.

A straight-line projection of the completed funding this year would result in $18.6B, which is almost equal to the total 2018 funding. On the other hand, a weighted quarterly average projection of 2019 funding would result in $26.1B, which exceeds the total 2018 funding by 40%. Therefore, based on the mid-year data, real estate technology funding in 2019 is projected to be relatively on par with the funding in 2018.

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Real Estate Technology Exit Activity in 2019 Projected To Surpass 2018

How has the exit activity for real estate technology developed in the first half of 2019? This blog post explores real estate technology exit metrics through Q2 2019 and compares them to previous years. The graph below shows the number of real estate technology exits by year, stacked by quarters.

Real Estate Technology Exits Over Time

As the graphic demonstrates, real estate technology has seen a total of 26 exit events through Q2 of this year. This represents 52% of the total exits in 2018, and 118% of the exits through Q2 in 2018. Some of the exit events in Q2 2019 include Control4’s acquisition by SnapAV, Intelex’s acquisition by Industrial Scientific, and Dynamic Lead Solutions’ acquisition by MRI Software.

A straight-line projection of the completed exit activity this year would come out to 52 exit events, which exceeds the total exits in 2018 by 4%. By the same token, a weighted quarterly average projection of 2019 exit activity would come out to 59 exit events, which surpasses the total exits in 2018 by 18%. Therefore, based on the mid-year data, real estate technology exit activity in 2019 is projected to increase from the exit activity in 2018.

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 Report Highlights – Q2 2019

Here is our Q2 2019 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 Investor Activity Has Been Slowing Down

How has investor appetite in real estate technology evolved throughout the years? In this blog post we examine the total investments by year into this sector to help answer that question. The graph below shows the total number of investors in all deals stacked by quarters.

Real Estate Technology Investors Over Time

As the graphic demonstrates, investor activity in real estate technology has been on a downward trend in recent years. The 5-Year CAGR of real estate tech investor activity from 2013 to 2018 is 16%. In addition, the sector has seen a total of 502 investors in all deals through Q2 of this year. This represents 45% of the total investor activity in 2018, and 83% of the investor activity through Q2 in 2018. Taking all these data points together, we can see that investor appetite for real estate technology deals has started gradually declining in recent years.

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

IoT Home Leads Real Estate Technology In Number of Investors

The real estate technology industry has seen 2,714 investors and $73B total all time funding. Let’s analyze which real estate technology categories have the most number of investors actively financing the startups. The graphic below highlights real estate technology categories based on the number of investors in each category.

Real Estate Technology Investors Per Category

As the graphic demonstrates, IoT Home has the highest number of investors at 697, with Home Services following behind at 580. IoT Home companies produce connected devices focused on the residential real estate segment. Home Service companies build technologies that support tenants in the management of their homes. In addition, the average number of investors across all real estate technology categories is 372.

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 Average Funding Is On An Upward Trend

For this quarter’s funding analysis, let’s examine how average funding in the real estate technology sector is evolving. The graphic below shows the real estate technology average funding across all deals over time by quarter.

Real Estate Technology Average Funding Deal Size

As the graphic demonstrates, real estate technology average funding deal size in Q1 2019 was at $66M, which increased by 101% from the $33M in the same quarter last year. The average funding deal size has experienced accelerated growth, with the average funding last quarter around 9 times larger than it was 5 years ago. The top three funding events in Q1 2019 include a $1B round into the We Company, an $800M round into Ke.com, and a $413M round into Delhivery.

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 Report Highlights – Q1 2019

Here is our Q1 2019 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 Sector Overview – Q1 2019

This blog post examines the different components of the real estate technology ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

IoT Home Is The Largest Real Estate Technology Category

Let’s start off by looking at the Sector Map. We have classified 1,755 real estate technology startups into 12 categories. They have raised $72B from 2705 investors. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Real Estate Technology Logo Map

We see that IoT Home is the largest category with 332 companies. These companies create connected devices focused on residential segment usage. These devices include home security, home automation, and energy management systems. Some example companies are Eero, Leeo, Tado°, and Netatmo.

Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.

The Pioneers Quadrant Has the Most Real Estate Technology Categories

Our Innovation Quadrant divides the real estate technology categories into four different quadrants.

Real Estate Technology Innovation Quadrant

We see that the Pioneers quadrant has the most number of real estate technology categories at 8, accounting for 67% of all real estate technology categories. The Facility Management category has the highest average age, and the Commercial Search category has the highest average funding. On the other hand, the Indoor Mapping and Property Management categories are low on both average funding and age.

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 Experiences Highest Funding Ever in 2018

As we progress through Q1 of 2019, let’s look back on 2018 and analyze how funding in the real estate technology (proptech) sector compares to previous years. The graphic below shows the total annual real estate technology funding amounts over time.

Real Estate Technology Funding Over Time

As the graphic demonstrates, 2018 was a record year for real estate technology funding at almost $20B. That represents a 38% increase from the previous year’s funding. In addition, real estate technology funding grew at a CAGR of 62% over the past 5 years. Some of the largest funding events in 2018 include a $3B round for WeWork, a $1.5B round for Lianjia, and a $1.1B round for View.

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 Investors With the Most Activity

The real estate technology (proptech) industry has seen $69B in total all time funding. Let’s examine the investors financing the real estate technology sector and identify the most active firms.

The graphic below highlights real estate technology investors based on the number of investments made in the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this analysis.

Real Estate Technology Investors with Most Investments

As the graphic demonstrates, 500 Startups has made the most investments in the real estate technology sector with 77 investments. Y Combinator follows with 56 investments. Examples of companies that 500 Startups has invested in include Knotel, Kin Insurance, and TaskRabbit.

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