Focus
Venture capitalists piled record $4B into PropTech in Q1
The Real Deal – April 19
A record $4 billion of VC equity funding flooded into the PropTech sector in the first quarter of 2022 as “investor confidence” in the sector hit an all-time high, according to a new report from investment bank Keefe, Bruyette & Woods. That’s an increase of 41% compared to the fourth quarter, and a gain of 31% compared to the same time last year. Investors’ appetite for risk seems to be on the rise, too. Seed and early-stage investment rose 122% year-over-year, while mid- and late-stage rounds saw a 14% decline in dollars committed.
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News
Governor Newsom issues executive order on crypto as state embraces blockchain technology
CNBC - May 4
Governor Gavin Newsom issued an executive order last Wednesday on cryptocurrencies, laying out a road map for regulatory and consumer protections and examining ways the state can take advantage of blockchain technologies and digital assets. Newsom is directing the state’s business and economic development office to work in collaboration with California’s Business, Consumer Services, and Housing Agency and the Department of Financial Protection and Innovation.
As rents rise, so does funding to rental-focused startups
Crunchbase News - April 29
Over roughly the last year, the median monthly asking rent has reportedly increased 17%, with at least 10 metro areas posting hikes of 30% and up. Venture-backed startups haven’t solved the cost and supply issues confronting renters, but they are scaling up some offerings that could ease the process of getting a place. From services to lower move-in costs to apartment comparison platforms to landlord-centered software tools, funding to companies focused on the rental space is increasing rapidly.
Real estate sector starts to use blockchain for ESG goals
Commercial Observer – May 3
When distributed ledger technology, commonly known as blockchain, was first used in 2008, many who studied it concluded that it was “a solution in search of a problem.” However, the real estate industry has found a particular use for blockchain in its environmental, social, and governance efforts to track and provide proof to investors, tenants, and government entities of its carbon reduction progress. In one notable recent example, Brookfield Properties in March announced a five-year agreement with Brookfield Renewable Partners to supply renewable electricity to One Manhattan West, the developer’s 67-story office tower in New York City, and it’s being tracked on blockchain.
Redfin to pay $4M to settle lawsuit over digital redlining
Fast Company – May 2
For prospective homebuyers, Redfin is a go-to resource. But in certain markets, due to what Redfin called a “minimum price limit,” the company declined to make the full range of its services available, disproportionately affecting homes in non-white areas. The National Fair Housing Alliance and a group of other housing organizations sued Redfin in 2020 to stop this practice, alleging that “Redfin’s policies and practices operate as a discriminatory stranglehold on communities of color.” In a settlement announced last Friday, Redfin has pledged to do away with its minimum price limits and pay $4 million to the plaintiffs.
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Deals
Material Bank raises $175M Series D from Brookfield
FinLedger - May 6
Material Bank, an online marketplace for architectural, design, and construction materials, has raised a $175 million equity funding round led by Brookfield Growth. The Series D funding round also included participation from Fifth Wall, SoftBank Vision Fund 2, and RXR, and is planned to expand Material Bank’s global footprint, power strategic acquisitions, and allow for new investments in the architecture, design, and construction industries.
Point closes on $115M to give homeowners a way to cash out on equity in their homes
TechCrunch – May 3
Historically, homeowners could only tap into the equity of their homes by taking out a home equity loan or refinancing. But a new category of startups has emerged in recent years to give homeowners more options to cash in on their homes in exchange for a share of the future value of their homes. One such startup, Palo Alto-based Point, announced last week that it has raised $115 million in Series C funding after a year of rapid growth. The company declined to reveal its valuation.
Fairstead makes $100M commitment to PropTech
Affordable Housing Finance – May 6
Fairstead, an affordable housing developer and owner, has announced a $100 million commitment to invest in PropTech startups and bring technology to its properties and residents. The initiative calls for deploying technologies across Fairstead’s affordable housing portfolio, which is on track to grow to more than 30,000 units over the next year, according to officials. The new effort will focus on decarbonization, energy, and sustainability improvements.
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