Focus

PropTech seed rounds shift in frequency and amount

Commercial Observer – February 7

Despite the current macroeconomic instability caused by high inflation and interest rates combined with a confusing employment market, PropTech-focused venture capitalists are not shying away from placing their bets on seed rounds — albeit with more stringent rules attached, analysts say. In a recent report, research firm CRETI noted that year-to-date in 2023, funding was down "across all rounds, except for seed rounds. In fact, year-to-date, seed rounds represent 39.6% of all deal volume, compared to 38% in 2022 and 33.6% in 2021."

News

Construction technology funding holds steady at nearly $5.4B

Construction Dive - February 15

The construction technology industry showed resilience in the face of adverse economic conditions globally as investment during 2022 held steady at around $5.38 billion, just under the $5.4 billion from 2021, according to a report by venture capital firm Cemex Ventures. Over 80% of investment in the market was in North America and Europe in 2022. Within those regions, the most active country was the United States, where 97 startups have their headquarters and 42.5% of all construction technology investment dollars flowed.

Venture world watches as SEC moves to regulate industry

Crunchbase News – February 9

Nearly a year ago, the U.S. Securities and Exchange Commission (SEC) started looking at adding regulations around how private investors, such as private equity firms, hedge funds, some real estate investment companies, and venture capital firms, vet deals. The added scrutiny would also open the door for LPs to push litigation against an investor if proper due diligence was not followed in a completed deal — something VCs have not had to worry about before. The sudden and complete collapse of crypto exchange FTX — and its affiliates — as well as the downfall of its founder Sam Bankman-Fried likely has generated even more interest by the SEC and others to examine the venture industry.

Deals

Camber Creek closes $100M fund to invest in PropTech companies

Bisnow – February 15

Venture capital firm Camber Creek is continuing to raise money for PropTech investments despite the headwinds facing the industry, closing a new $100 million fund less than a year after finalizing a $325 million fund. The firm recently announced the closing of its Opportunity Zone I fund. It will use the fund to put more money into its existing portfolio companies to "retain its pro rata" on those investments and to find new strategic investments. The fund represents the largest PropTech capital raise so far in 2023, Commercial Observer reported.

VC firm Fifth Wall to bankroll deployment of carbon-free building tech

Canary Media – January 23

Fifth Wall launched in 2017 to invest in software tools to modernize the real estate industry. Last summer, it added a venture fund specifically focused on decarbonizing the buildings sector, and that’s grown to $740 million. In January 2023, Fifth Wall announced it would go further than placing venture bets on startups or taking private equity stakes in the companies. The firm will now open its decarbonization fund up to financing the physical assets that need to be installed broadly throughout the built environment to zero out carbon emissions from people’s homes and workplaces.

Property services startup Lessen acquires rival for $950M

The Real Deal – January 13

Property services startup Lessen agreed to acquire competitor SMS Assist for $950 million. Lessen raised $500 million in debt and equity to finance the deal, which included Monroe Capital and Invitation Homes as investors, Bloomberg reported. Lessen is a real estate management platform that connects property owners and managers to electricians, cleaners, and other service providers, specializing in large-scale renovations and updates between tenants.

Real estate startup vets land $7M for new construction project management startup

GeekWire – February 1

Digs, a web-based platform where builders, homeowners, and suppliers can connect and collaborate throughout the build process, has announced a $7 million seed round from Fuse and Flying Fish. Other backers of the company, based in Vancouver, Washington, include Betaworks, Legacy, Portland Seed Fund, and GFR.

Openn raises $3.65M for U.S. expansion

RealTrends – January 14

Openn Negotiation, a publicly traded property technology firm in Australia, raised $3.65 million to fund its software as a service solutions expansion into North America. The company offers a proprietary cloud-based software platform for real estate agents. The platform is designed for negotiations and digital contracting, and it provides communication tools for transactions.

GSA opens workplace innovation lab, a coworking space for federal employees

FCW – January 25

The General Services Administration (GSA) debuted its Workplace Innovation Lab in January, offering a sprawling, reimagined federal co-working space for agencies’ employees to gain insights on new developments in office sustainability. The 25,000-square-foot-space offers a wide variety of workplace designs and features sensors to provide visitors with information about occupancy, reservation times, temperature, air quality, and other climate data within the building.