A report produced by CB Insights discusses funding slow down to the real estate technology startup sector, after reaching a high in 2014 at almost $275m.
Snapshot of the report below:
After a peak year in 2014, corporate funding and deals to real estate technology startups have dropped off considerably this year.
08estment to real estate tech spiked in 2014, reaching almost $275M, across 15 deals. Notable investments in 2014 include a $90M Series B financing to India’s Housing.com in December 2014, at a $250M valuation; a $50M private equity round in March 2014 to Auction.com, at a $1.2B valuation; and Fundrise’s two Series A tranches, including $31M in May 2014 and $7M in September 2014.
In 2015, corporate investment in real estate tech is projected to drop 75% in dollar terms year-over-year, and deals are on track for only half the deal activity seen in 2014.
That said, this year’s funding trend is still higher than annual investment in 2013 and 2012.
On a quarterly basis, Q4’14 represented the funding and deals peak. Interestingly, 5 of 6 of the deals done in the quarter were to companies headquartered outside the US, including the Series B financing of Uoko in China and the seed financing of Japan-based Space Market.
After a particularly anaemic Q1’15 with only 1 deal and $10M in funding involving corporates, deals and dollars bounced back in Q2’15 with $39M invested across 4 deals.
Read more at: www.cbinsights.com