Proptech Investment Is Way Down, But These 4 Areas Still See Demand

Proptech Hero Google DeepMind Unsplash 1024x576

Proptech Hero Google DeepMind Unsplash 1024x576

At Inman Connect Las Vegas, taking place from July 30-August 1, 2024, you can expect clarity, accurate information, and new business opportunities. Join us for this event.

Recent reports indicate a shift in proptech investment due to global economic and geopolitical factors and a reevaluation of values. In the first quarter of 2024, proptech venture capital investments dropped by 12.4% year-over-year to $1.491 billion, a substantial decline from previous years.

Investments in proptech showed high volatility in the first quarter of 2024, with sporadic funding rather than consistent investment. Another report from Valley Bank revealed that 70% of proptech investment in 2023 came from venture capital, totaling $2.9 billion across 144 deals.

Despite the overall decline in investment, early data from 2024 suggests that investors are cautiously continuing to make strategic moves. Areas of proptech that remain promising for investment include AI innovation and solutions for sustainable building practices.

Investors are also focusing on AI adoption, green building and energy transition tech, property management, and transaction solutions. Companies that offer cost-saving, revenue-boosting tools and show potential for long-term sustainability are attractive to investors.

Valley Bank’s report highlights the importance of sustainability and efficiency in proptech investment, and the industry’s focus on delivering innovative solutions across various sectors. Sign up for Inman’s Property Portfolio Newsletter for more insights and updates. Email Lillian Dickerson for inquiries.

The proptech investment landscape has seen a decline in total venture capital investments in the first quarter of 2024, largely attributed to economic and geopolitical factors. Despite this decline, investors are still cautiously making moves in promising areas such as AI adoption, green building and energy transition tech, and property management and transaction solutions. Companies focusing on AI-driven automations, sustainable building practices, and cost-saving tools are attracting investments. Additionally, there is a growing interest in young companies showing potential for long-term sustainability. Overall, investors are prioritizing businesses with sustainable revenue streams and growth opportunities. The proptech industry is expected to continue evolving, with a focus on innovation, investment, and growth in various sectors of the real estate ecosystem.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

scroll to top