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VC Funding on the Decline Overall: Funding for CRE Tech is Up

Venture Capital Funding – All Industries

Since the middle part of last year (2015) we’ve seen venture capitalists pull back from making new bets on startup technology firms.  In fact, we reached a two-year low, primarily because of worries that there was too much froth in start-up investing.

There was a 13% decline in during the 4th quarter of 2015.  Investors are also debating whether they overpaid to invest in many start-ups like Snapchat and Dropbox.

 

Real Estate Tech Funding

Despite a drop in overall venture capital investments, funding for real estate technology companies is on the rise.    Real estate tech startups raised a record high of over $1.7 billion in 2015.

 

There are a slew of new startups making an impact in a variety of different ways.  Many entrepreneurs over the last few years are taking advantage of the opportunity to transform our industry from archaic to progressive.  They’ve built all sorts of platforms, from listing and search services, to investment and crowdfunding platforms, to tech-enabled brokerages (robo-brokers), to 3D viewing technologies to leasing management platforms.

 

Outlook

I think we are at the beginning of the real estate tech boom.  I think we will see a plethora of new technology companies receive funding for the foreseeable future, and those that have received early stage funding will continue to see funding in later stages at high rates.  Until we get out of the dark ages we will continue to see plenty of investment in real estate tech firms…. And we all know we are a long way from being out of the dark ages!

Greg Barrett
Greg Barrett
Greg Barrett is the founder and editor of CREentrepreneur.