PropTech Update – August 2022 | Allen Matkins
Wealth Management – July 27
Last year, venture capital firms invested $32 billion in PropTech companies around the world, which is similar to pre-pandemic annual volume and a 28% increase from 2020, according to the Center for Real Estate Technology & Innovation (CRETI). Nearly half of the funding went to home tech companies. Throughout 2021, venture capital investments shifted from start-ups to mid-stage and late-stage companies. Although VC PropTech funding increased by 5.65% in the first half of the year compared to the same period in 2021, investment activity declined as the year progressed. From the first to the second quarter of 2022, funding fell by 23%, according to CRETI.
GeekWire – August 3
Real estate tech startups make it easier to invest and manage real estate. But critics argue that these software companies and their business models are gobbling up the limited amount of available housing in the process, driving up costs and pushing away first-time buyers. Some researchers counter that the lack of affordable housing has more to do with limited supply than the proliferation of technology-based real estate investment platforms.
Tech Crunch – August 1
Opendoor has agreed to pay $62 million to settle charges from the Federal Trade Commission, which says the company’s claims that it helps people make more money by selling their homes to the company rather than putting it on the open market were misleading. The commission alleges that not only were Opendoor’s offers lower than the market value of a home, but also that the company actually asked sellers to pay more for home repair costs “which were higher than what people would typically spend on repairs when selling on the market”.
CNBC – July 21
Fifth Wall, a venture capital firm focused on real estate technology, is tripling its bet that climate tech will become a critical driver in the real estate space. It has just announced commitments of half a billion dollars to close its first Climate Fund, which was launched with $116 million in August last year. It is the largest private fund created specifically to decarbonize the real estate sector, according to the firm.
Fast Company – July 7
Net zero energy homes (ultra-efficient homes or apartments that produce as much energy as they consume) are cheaper to own than standard homes because they save on energy bills, but they can be quite expensive to build. A startup called Vantem aims to change that. The company, which just raised a Series A investment round from Breakthrough Energy Ventures, builds homes using panels with a proprietary design that sandwiches an insulating layer between two structural panels.
RE Connected Magazine – August 1
FLASH, a global cloud-based parking software provider, and real estate investment management firm Brookfield announced a strategic partnership. Brookfield’s technology growth investment firm will make a $40 million strategic investment in the partnership. Together, the companies will leverage FLASH’s connected mobility and vehicle electrification solutions across Brookfield’s diverse global real estate assets.
Construction Dive – July 27
Cemex Ventures, based in San Pedro Garza Garcia, Mexico, one of the industry’s most prominent contech investment firms and an arm of the global concrete company, announced on Tuesday that it is investing in the Cobod 3D printing based in Copenhagen. With its new investment, Cemex Ventures said the two companies aim to create more building materials products and advancements in 3D printing.
Commercial Property Manager – July 20
As office tenants recalibrate their strategies, the role of flexible space is gaining visibility. In a sign of the trend spreading through the industry, WeWork and Yardi have partnered on a new platform that targets the rapidly changing needs of office users. Over the next two years, 51% of businesses expect flex spaces to make up a significant portion of their office space, according to CBRE’s latest US Office Occupant Sentiment Survey.