HomeAnalysisProptech VC Investments Total $11.38 Billion in 2023, CRETI Report Finds

Proptech VC Investments Total $11.38 Billion in 2023, CRETI Report Finds

CRETI

The Center for Real Estate Technology & Innovation (CRETI), the real estate technology industry’s think tank and venture network, released the 2023 Proptech Venture Capital Report.

According to the report, in 2023, proptech investments witnessed a significant shift, totaling $11.38 billion, which suggests a strategic recalibration in the sector. The amount represents a 42.38% dip from 2022’s $19.75 billion and a 64.44% decrease from 2021’s investment high of $32.0 billion.

The year began with a conservative first quarter, setting the tone for the year. Seed-stage investments dominated, comprising 33.50% of all investments, underscoring the sector’s focus on developing new ideas and technologies at their inception.

The median venture capital funding in proptech in 2023 displayed a pattern diverging from the high investment values seen in previous years. This shift suggests a more cautious approach by investors, possibly due to market corrections or reassessment of long-term viability and impact of proptech ventures. The trend indicates a maturing market where investors are becoming more selective, favoring ventures with proven business models and clear profitability pathways.

VCWire

07/12/2023