Focus
PropTech VCs hit a pause
Wealth Management – July 27
Last year, VC firms invested $32 billion in PropTech companies across the globe, similar to pre-pandemic annual volume and an increase of 28% over 2020, according to The Center for Real Estate Technology & Innovation (CRETI). Nearly half of the funding went to residential tech companies. Throughout 2021, VC investments shifted from early-stage to mid- and late-stage companies. Though VC PropTech funding increased by 5.65% during the first half of the year compared to the same period in 2021, investment activity decreased as the year progressed. From the first to the second quarter of 2022, funding dropped 23%, according to CRETI.
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News
The rise of high-tech real estate investing platforms and their effect on housing affordability
GeekWire - August 3
Real estate tech startups are making it easier for people to invest and manage property. But critics argue that these software companies and their business models are gobbling up the limited amount of available housing in the process, driving up costs and pushing out first-time buyers. Certain researchers counter that the lack of affordable housing has more to do with the limited supply, not the proliferation of tech-enabled real estate investing platforms.
FTC slams Opendoor with $62M settlement over false advertising claims
Tech Crunch - August 1
Opendoor has agreed to pay $62 million to settle charges by the Federal Trade Commission, which says the company’s claims that it helps people make more money by selling their house to the company rather than listing it on the open market were deceptive. The commission alleges that not only were Opendoor’s offers lower than a home’s market value, but also that the company actually asked sellers to fork out more for home repair costs “that were higher than what people would typically spend on repairs in a market sale.”
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Deals
Fifth Wall closes half-billion-dollar climate fund to decarbonize global real estate
CNBC - July 21
Fifth Wall, a venture capital firm focused on real estate technology, is tripling down on its bet that climate tech will become an integral driver in the real estate space. It just announced commitments of half a billion dollars to close its inaugural Climate Fund, which launched with $116 million in August of last year. It is the largest private fund formed specifically to decarbonize the real estate industry, according to the firm.
This Gates-backed startup is building net-zero housing in factories
Fast Company – July 7
Net-zero homes—ultra-efficient houses or apartments that produce as much energy as they use—are cheaper to own than standard houses since they save on energy bills, but they can be quite expensive to build. A startup called Vantem aims to change that. The company, which just raised a Series A round of investment from Breakthrough Energy Ventures, builds homes using panels with a proprietary design that sandwiches an insulating layer between two structural boards.
FLASH, Brookfield partner to shape smart cities, global mobility
Connected RE Magazine – August 1
FLASH, a global cloud parking software provider, and real estate investment management firm Brookfield announced a strategic partnership. Brookfield’s technology growth investment firm will make a $40 million strategic investment in the partnership. Together, the companies will leverage FLASH’s connected mobility and vehicle electrification solutions across Brookfield’s diverse global real estate holdings.
Cemex Ventures invests in 3D-printing tech for building
Construction Dive – July 27
San Pedro Garza Garcia, Mexico-based Cemex Ventures, one of the most high-profile contech investment firms in the industry and an arm of the global concrete company, announced on Tuesday that it was investing in Copenhagen-based 3D-printing firm Cobod. With its new investment, Cemex Ventures said the two companies aim to create more building material products and advancements in 3D printing.
WeWork and Yardi launch flex office platform
Commercial Property Executive – July 20
As office tenants recalibrate their strategies, the role of flex space is gaining a rising profile. In a signal of the trend rippling through the industry, WeWork and Yardi have teamed up on a new platform that targets the rapidly changing needs of office users. During the next two years, 51% of companies expect flex space to account for a significant share of their office space, according to CBRE’s latest U.S. Office Occupier Sentiment Survey.
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