Focus

PropTech VC funding down 77% annually

Commercial Observer – April 4

Venture capital investment in PropTech continued its downward trend as the dollar volume of funding dropped 77% annually in the first quarter of 2023. At the same time, the number of investment deals appears to be holding steady compared with 2022. VC investment in the sector reached $1.69 billion during the first quarter of 2023, significantly lower than the $7.44 billion and $6.97 billion recorded during the same periods in 2022 and 2021, respectively, according to a new report from the Center for Real Estate Technology & Innovation.

News

U.S. regulators warn they already have the power to go after AI bias — and they’re ready to use it

CNBC - April 25

In a joint announcement from the Consumer Financial Protection Bureau, the Department of Justice, the Equal Employment Opportunity Commission, and the Federal Trade Commission, regulators laid out some of the ways existing laws would allow them to take action against companies for their use of AI. For example, the CFPB is looking into so-called digital redlining, or housing discrimination that results from bias in lending or home-valuation algorithms, according to Rohit Chopra, the agency’s director. CFPB also plans to propose rules to ensure AI valuation models for residential real estate have safeguards against discrimination.

Rising AI and machine learning investments powering senior care advancements

McKnights Senior Living – May 1

Total U.S. investment in artificial intelligence and machine learning healthcare investment rose overall in the last few years: from $8.6 billion in 2020 to $13.9 billion in 2021, and down slightly in 2022 to $10.1 billion, according to JLL. This investment has been used to power several advancements in senior living and nursing homes, including health and safety monitoring via sensors and other tools. Investors also see the value of AI in terms of streamlining real estate operations, something that also could impact the building of new nursing homes and assisted living facilities, researchers said.

Deals

Redaptive adds to Series E — hits $250M

Crunchbase – May 3

Denver-based Redaptive added another $50 million to its Series E. Led by long-time investor Linse Capital, the new investment brings the round total to $250 million. Redaptive helps customers conserve energy and be more efficient, lowering costs and meeting goals to reduce the carbon footprint.

Infogrid raises $90M for its AI-driven building monitoring tech

Tech Crunch – April 11

Infogrid, a startup that uses AI to collect and analyze data on things like air quality, occupancy, and energy consumption, has raised $90 million in a Series B round led by Northzone. Via IoT sensors manufactured by an ecosystem of hardware partners, Infogrid can measure domains such as the number of people, air quality, and cleaning needs throughout a building, so that customers can make adjustments impacting sustainability scores and operating costs.

Fifth Wall leads $9M funding round

Los Angeles Business Journal – April 17

PropTech venture capital firm Fifth Wall was announced as the lead investor of a $9 million series B funding round for leasing platform Vero, which comes nearly four months after the firm closed a multi hundred-million-dollar real estate technology fund. The $9 million in capital brings Vero’s total funds raised to-date to $26.7 million and will help to deepen the company’s technology stack.

Real estate startup Renew raises over $8M in seed round

CityBiz – April 12

Renew, a New York startup developing software to manage tenants and speed up rental renewals, has emerged out of stealth and announced the closing of a seed round of over $8 million. Investors include Upfront Ventures, Goldcrest Capital, Allen & Company LLC, and Walkabout Ventures. Apartment operator RXR and executives of another real estate firm, WC Smith, also participated.

Startup hopes to formalize real estate apprenticeship

The Real Deal – April 5

Startup ReSeed Partners will provide up-and-coming operators with the cash and support to source deals, and will help source investor funds to close on those deals. ReSeed will pay successful candidates a stipend for living expenses, cover the cost of lead generation, and more. It hopes to make revenue through taking fees on LP capital it secures for the operators and asset management fees.

Built Technologies receives investment from Citi

FinSMEs – April 13

Built Technologies, a Nashville-based construction and real estate software provider, received a strategic investment from Citi through its SPRINT program. The amount of the deal was not disclosed. The company intends to use the funds to accelerate its growth in commercial real estate asset management and enable further operational and technological enhancements.