Proptech funding experienced a 14.3% drop recently, according to a report by CRETI. However, there is still optimism in the sector. Ninety-one percent of tech firms anticipate raising capital, with 45% expecting this to happen within the next 10 to 12 months.
Early-stage funding, which targets startups in the initial phases of their business cycles, continues to be a key area. More than half, 63.7%, of surveyed companies are seeking to raise funds at this level. This focus on early-stage funding underscores the sector’s emphasis on new and emerging technologies.
Growth-stage funding, aimed at companies that have moved past initial hurdles and are focusing on scaling operations and market reach, accounted for 28% of surveyed companies. In contrast, a smaller segment, 8.3% of startups, were in the late stages of funding. These companies are looking to solidify their market positions or prepare for exits.
Notable funding rounds highlighted by CRETI include Bilt Rewards, an apartment-related company, which raised $200 million in a venture round led by General Catalyst. This New York City-based startup, involved in rewards and loyalty solutions, has recently faced scrutiny due to its relationship with Wells Fargo.
Another significant funding round involved Guesty, based in Tel Aviv, Israel. Guesty, which helps property managers manage short-term rentals, raised $130 million in a Series F round led by Kohlberg Kravis Roberts. This indicates the continued growth and potential of property management technologies.
The report noted that a significant majority, 91%, of proptech and related companies anticipate raising capital in the coming years. Of these, 45% expect to secure funding within the next 10 to 12 months.
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By Proptechbuzz
By Ravi Kumar