Investments in real estate businesses, including real estate tech, was off to a strong start in Q1 2017.
Despite the strong start, venture capitalists are extra cautious and doubling down on established businesses, while returning back to rational dealmaking in real estate and real estate tech, regarding new investment data from Q1 2017.
Venture firms deployed nearly $3 billion in 70 companies, according to data by Crunchbase. However, 90% of venture capital was received by only 10 companies, including WeWork, PropTiger and Placester. Additionally, non-tech/software based businesses, received nearly $2.65 billion in funding.
Real Estate (Non-Tech/Software) | Q1 2017
WeWork | New York City | $1 Billion
Global Switch | London | $526 Million
The Lighstone Group | New York City | $305 Million
e-Shang Redwood | Shanghai | $300 Million
OfferPad | Gilbert, AZ | $230 Million
ASRR Capital | Tel Aviv | $90 Million
Ladder Capital Finance | New York City | $80 Million
Opus Bank | Irvine, CA | $53 Million
Phoenix Group India | Hyderabad, India | $47 Million
Knotel | New York City | $25 Million
Despite the disproportionate split between real estate tech and none tech investments, the global real estate tech sector received nearly $333 million from venture firms. Venture firms deployed nearly $173 million in US based firms.
Real Estate Tech (Software/Hardware) | Q1 2017
PropTiger | Gurgaon, India | $55 Million
Placester | Boston | $50 Million
HouseCanary | San Francisco | $33 Million
Knock | New York City | $32.5 Million
Mindspace | Tel Aviv | $15 Million
Credifi | New York City | $13 Million
Square Yards | Gurgaon, India | $10 Million
Nested | London | $9.9 Million
Goodlord | London | $8.9 Million
Trussel | London | $5.6 Million