VC Investments in Real Estate Tech Decreased by 53% in Q4
RE:Tech
Real Estate Tech VC Funding Falls in Q4 2015 Venture Capital Investments in Real Estate Tech Fell Dramatically by 53% Download Full Report › Venture Capital Investments in Real Estate Tech » Investors Expect Real Estate Tech Slowdown. After several strong years of never before seen funding of VC backed real estate tech companies, investors see a narrowing of deals for real estate tech companies in 2016. Venture capitalists who have invested in real estate tech are looking ahead with moderate concerns after a slowdown from near record highs in Q3 2015. After reaching nearly $570 million in Q3 2015, real estate tech investment fell by a dramatic 53 percent to $27 million in Q4 2015. While the overall sentiment amongst real estate professionals remained stable, the negative sentiment amongst investors quickly manifested itself in Q4 at never before seen drop off levels. “I think there will be a clearer divide between ‘haves and have nots’ with most funding going into the winners but the general market slowing down as investors wait for exits to materialize, according to Namek Zu’bi Founder & Managing Partner at Silicon Badia, investor in Compstak, Honest Buildings, and Storefront. “ I predict there will be some consolidation, particularly in commercial real estate tech, with synergistic players merging together to create more valuable plays.” Real Estate Tech Startups Could Face Fresh Valuation Pressure in 2016. On the heels of higher interests, today's highly valued real estate technology startups could face tougher private fundraising conditions in 2016. The move could making it more difficult to raise capital than in 2015, especially in sectors like commercial real estate technology where the user adoption rate is already more challenged compared to residential real estate tech. “There's a plethora of early stage technology startups that are spurring interest and investment from the VC community outside of the US.” said Ashkan Zandieh, Founder of RE:Tech. “The growth of the on-demand economy, specifically in residential and multifamily, in the global market is an area we’re paying close attention to. Markets like Asia, UK, and India continue to be particularly robust and dynamic.” Click Here to Download the Full Report › Venture Capital Investments in Real Estate Tech » VC Investments in Real Estate Tech Decreased by 53% in Q4 RE:Tech