Chapter 2 - The Annual Update - Extended Monaco pour l'Entreprise

4

Increase of $5.805 billion USD from FY (Fiscal Year) 2022-2023, reflecting a 13.78% growth

Company Categories & Financial Performance

Investment Trends by Country

Global Revenues, excluding the US

The PropTech market in FY 2023-2024 experienced significant growth and consolidation, with leading investments and innovative technologies shaping the landscape. The strong performance in managing categories, along with emerging opportunities in building technologies, signals a promising future for PropTech investment and innovation.

In the 2023 to 2024 fiscal year – ranging from June 1, 2023, to May 31 2024 – a total of 1,739 companies raised $47.94 Billion USD, with the help of 2,494 investors who completed 1,914 deals. The relatively smaller number of companies and investors participating in the marketplace reflects a predicted further consolidation of the PropTech market that we highlighted in last year’s barometer, as does the consolidation of deals into fewer countries. Still the growth of investments, which increased $5.805 billion USD from the 2022-2023 fiscal year, represents the significant growth of the PropTech ecosystem. In other words, the 13.78% increase in PropTech investments has clearly beat out the annualized gross domestic product growth rates of both the American economy and the Eurozone, making up one of the strongest, and most promising, sectors of the economy in those regions. Venture capital remained strong across all quarters of the fiscal year, although there were massive jumps in Corporate/Strategic M&A deals in the latter part of 2023, with enormous deals completed in Private Equity following suit.

The largest single deal in the fiscal year was Black Knight’s $11.7 Billion USD M&A deal, although Wanda Commercial Management – China’s first real estate group that has become well-known for transforming old urban areas and developing inter-regional projects – also completed a significant $8.3 Billion USD deal, and the top eight deals were all a billion dollars or more. By comparison to last year, this means the largest deals in PropTech continued to grow, as the number two spot this year would have easily secured the number one spot last year, but the range of deals among the top ten is relatively comparable. The signs of a stabilizing market in the PropTech ecosystem may be interpreted by some as an indicator that the exciting times of the PropTech disruptors have come to an end, but this is hardly the case. Indeed, in this year’s barometer we pay special attention to the most innovative technologies, the most groundbreaking companies, and the new horizons of the PropTech industry. Compared to the previous barometers we have completed, another exciting addition for this year is more in-depth region by region analysis, so that we might provide additional insights into where there are opportunities to introduce fresh technologies into emerging subsectors of the PropTech market.

Figure 1: Number of companies by category, 2023-2024 FY

Figure 1 shows the number of companies by company category that were active in the 2023 through 2024 fiscal year. As we can see, the Managing sector of the PropTech community remains strong, although the Building category is rather strong, with a large number of companies working on the front end of the real estate asset life cycle, and fewer companies involved in the investment and living and working conditions at the end of the life cycle.

Among companies active during the 2023-2024 fiscal year, those in the Managing category have raised both the most all time investments and the most revenue. Managing category companies have totaled $40 Billion in fundraising and $44.7 Billion in Revenue. Next, while the Investing category have raised some $17.8 Billion in funds, the companies in this category generated just $4.6 Billion USD in revenues. Similarly, the Living category has attracted $10.3 Billion USD in fundraising, but made just $3.5 Billion USD in revenues. By contrast, the oft neglected Building category have attracted just $6.5 Billion USD in total fundraising, despite earning some $21.2 Billion USD in revenues. The evidence suggests that the category is ripe for investment, especially as a diverse array of technological innovations are impacting all elements of the Building process, from materials to 3D printing and mapping technologies. However, this year, robotics and smart equipment has emerged as a clear leader, with new promising companies like Raise Robotics innovating in the marketplace by creating robotic equipment to compete necessary construction tasks in incredibly dangerous conditions, while making very precise records of the construction process, with their work initially supported by Berkeley’s Sky Deck tech innovation start-up platform. The Sky Deck program is both an accelerator and an incubator, operated as a joint venture between the Haas School of Business and the Berkeley College of Engineering at the University of California-Berkeley. The program is a primary feeder of new companies, innovative technologies and personnel to Silicon Valley.

We came from the exact opposite backgrounds. Gary had been in autonomous vehicles. My background was in structural engineering and construction equipment sales. We were looking for new ways to apply new technologies to construction, to these older industries. We’d meet a couple times a week, review potential use cases…go back to customers…pitch…see if they’d bite…once we got into the high precision fastener installations and leading-edge work…that’s where we got the most traction…applied to Sky Deck…got in…and the rest is history.

Conley Oster - Co-Founder, Raise Robotics

Although there are fewer investments in the Building sector, there are a very significant number of new and emerging technologies, suggesting the Building category may be more ripe for prospecting investors. At the same time, there are very significant investments in the investing and living and working conditions categories, spread across far fewer companies, suggesting that the investing and living and working conditions categories are ripe for the development of new technologies, especially those addressing oft neglected needs, while leveraging cutting edge technologies, such as Vox Aeris and Craftle.

This started out addressing consumers’ usual neglect toward indoor air quality. This seems to be a trend, especially in younger audiences…and that’s why I wanted to design an air purifier that would serve this audience, who was basically unaware of the harm being done by invisible indoor air pollution. That’s why I designed an air purifier that uses acoustic agglomeration technology, which later evolved into a commercial ventilation retrofit with particulate clustering and energy efficiency benefits.

Selene Sari - Founder, Vox Aeris

We started out in the pre-GPT era, building our proprietary algorithm that classifies furniture pieces by design type…(so)…This allows us to understand the furniture from a design standpoint. Then, we took it further by incorporating color, dimensions, and additional context. So that’s how we developed our ‘Craft My Style.’ Basically, you give us your budget, and we furnish your space within that design style and budget.

Angela Kim - Founder & CEO, Craftle

Figure 2: Companies by Known Ownership Status, 2023-2024 FY

Figure 2 shows the number of companies by known ownership status as of June 2024. The vast majority (1,258) were privately held with backing, while a tiny portion were privately held with no backing (6). Additionally, while a roughly comparable portion were either Out of Business (191) or M&A transactions where the resulting agreement ends with the key PropTech company Operating as a Subsidiary (155), comparatively small numbers were either publicly held or acquired/merged (22). Finally, one single company, Royalty Management Holding Corporation, whose work in the PropTech industry focuses on real estate permit transactions and patents, was in active IPO registration at the time of the data pull. What is significant about the above data is that the evidence suggests that while there are a significant number of mergers and acquisitions, relatively few numbers of these deals end up with companies ending operations in a full acquisition or merger. Instead, they more often continue operations as operating subsidiaries of the acquiring firm. Regardless, in the coming year, it is very likely that the vast majority of PropTech companies will remain privately held.

Figure 3: Mergers & Acquisitions by Category, 2023-2024 FY

Figure 3 shows breakdown of the 159 Mergers and Acquisitions deals by company category for the 2023 – 2024 fiscal year. While the Managing category accounted for nearly 58% of the deals, with 92 total mergers and acquisitions, the Investing and Living category (with just short of 9% and 8% of the total each) make up a smaller share of the deals than the Building category alone. The Building category showed a strong performance from M&A deals in the past year, with a bit more than 25% of the total. Although the number of deals was still much smaller than the Managing category, as we shall see, the Managing category makes up a much larger share of the market.

159

Mergers and Acquisitions deals

Consequently, the evidence suggests that while there is more space in the Building category for new companies and investors to merge, the chances that a Building category company will be involved in a significant M&A deal are relatively greater. The situation likely reflects the nature of construction technology companies, where a company operating in a very specific niche develops a very promising technology and subsequently, they become a ripe target for an acquisition.

58%

Managing caterory deals

Figure 4: Total Fundraising for PropTech Companies Active in 2023-2024 FY, by Category and Fundraising Size

Figure 4 shows the All-Time Total Fundraising totals for PropTech companies that were active in the 2023 to 2024 fiscal year. The Building category has raised $6,486.03 Million USD, while the Living category has raised a total of $10,306.63 Million USD. An example of a top deal maker in this category is Clutter.

Clutter is a provider of on demand storage and moving services, including being the largest provider of « Smart Storage » technology. Smart Storage is arranged through an app that allows for scheduled arrival of moving labor and packing services to a location, so that the customer does not even need to pack most of their belongings. Each item is photographed and digitally cataloged in an online-accessible inventory. The items are then shipped to a climate-controlled storage facility. By viewing items in the inventory, customers can then select to have each item delivered on demand.

Founded in 2014, Clutter has been listed on CrunchBase’s website lists of US acquired companies with more than $10 million in revenue and Shopzilla Alumni founded companies.

Clutter was acquired by Iron Mountain (Systems and Information Management) for $60.6 million USD on June 29, 2023. As Iron Mountain is primarily a storage business with the rest of their revenue stemming from value-added services, the acquisition will bring Smart Storage technology to Iron Mountain’s service platform.

Despite the success of many companies in the Living and Building categories, the Building and Living combined still have not raised as much as the active companies in the Investing category, which have raised a total of $17,761.6 Million USD, while the Managing category rose far above the rest. With more than double the fundraising of the Investing category, Managing category companies active in the 2023-2024 fiscal year have raised an all time total of $40,036.19 Million USD. In part, this fundraising has to do with the fact that the managing category has attracted the most investment in technological solutions that directly address common problems that appear in the management of property. For instance, landlord tools, like Modives, are companies that often attract a significant amount of attention and develop user bases quite quickly. In the case of Modives, the specific problem they address is the verification and record keeping associated with renter’s insurance.

The big difference in technology is we are not dependent on the upload of a declaration page and scanning it using AI or Machine Learning… but rather, we are helping the consumer connect with their carrier…analyze it through our own AI-driven adequacy engine, which looks at the coverages themselves and matches them with those required by the property. Also, using our decades of industry experience working with insurance to make sure that logic is correct, and that coverage is what it should be.

Joel Samen - Chief Marketing Officer, Modives

Across the cycle, we saw enormous deals completed by MRI Software which totaled $350.059 million, being by far the largest deal maker of the Investing category, with a total of 2% of the share of total fundraising among the 156 companies in the category. As a transformational developer of real estate software, MRI has been providing solutions for owners, occupiers and agents for decades. Their software helps automate workflows, aids with budgeting and forecasting, improves debt management, allows users to visualize complex data, provides strategic planning for investments along with portfolio analysis, and provides compliance management, including for affordable and public housing programs. Although it may be surprising to see a company involved with affordable housing making such an enormous impact, when one considers the breadth and dept of MRI’s software solutions, it is easy to see how it rose in the ranks of real estate software developers.

MRI reached this year’s total fundraising heights through a series of four deals. They began when they raised $338.09 million of debt financing on November 27, 2023 and an additional $249,000 of debt financing on February 10, 2024. These deals followed upon two previous debt financing deals, being $1.19 million on September 30, 2023 and $10.53 million of debt financing on June 30 of 2023. Further, among PropTech companies active in the 2023-2024 fiscal year, MRI Software has the highest all time fundraising numbers, totaling $5.93 billion, a status in part explained by the company’s storied history. The company began as Management Reports Incorporated in 1971 but was known as Intuit Real Estate Solutions after the company behind TurboTax’ fame acquired MRI’s suite in 2002, before being renamed in 2009, after an acquisition by a private equity firm.

The financiers for MRI Softwares debt financing deals span a range from T. Rowe Price OHA Select Private Credit Fund and North Haven Private Income Fund – two private business development firms in New York City – to lenders such as Golub Capital, Crescent Capital Group, Ares Management, and Antares Capital, with the aim of supporting further acquisitions for the expansion of MRI massive and influential software suite. Furthermore, as announced in October of 2023, the MRI Agora platform will use the OSCRE Industry data model – a free access and open standards model – to facilitate the integration of potentially disparate software applications through improved decision making and data standards. The improved technology will result in making software systems integration faster, safer, and less costly. Hence, PropTech watchers should be on the lookout for more acquisitions led by MRI to be shifting the PropTech ecosystem through 2024 and 2025.

Similarly, between CoStar Group ($5.75 Billion), Black Knight ($5.15 Billion), and Corporation Services Company (CSC, $3.50 Billion), more than a third of the Managing category fundraising is accounted for by just three behemoths. CoStar is a global leader in providing commercial and residential real estate information, analytics and online marketplaces, while CSC is a global leader in the providing of business administration and compliance. Where the field gets more interesting is the Living and Building categories, where less overall fundraising is balanced by a more diverse marketplace in terms of technologies that companies are offering. For instance, while the big players in Investing operate with a range of technologies that are relatively similar, Infra.Market, Innoviz Tech, and Sogelink – the top three companies active in 2023-2024 by all-time fundraising, offer a range of technologies.

For instance, Infra.Market ($596.35 Million USD) is a one-stop online platform for building materials, while Innoviz Tech ($558.98 Million USD) focuses on LiDAR sensors and perception software. Finally, Sogelink provides SaaS-based business software that services the construction industry, providing solutions for project management, design and engineering, and safe construction. Thus, within the Building category, even the top players are focusing on a relatively wide array of technological solutions.

Overall, while some of these major players were involved in the largest deals of the cycle, such as Black Knight, MRI Software, Corporation Service Company, and CoStar Group, others, such as Zillow Group – the American tech-giant that disrupted the entirety of the global real estate market with the innovations of its online marketplace since its founding in 2006 – are represented in the long-term data, but only completed, relative to their overall fundraising, rather small deals in the cycle. For instance, Zillow Group’s deal was a $270,000 USD PIPE deal, while AvantStay – the hospitality platform that has redefined how people work, travel, and invest – completed two smaller General debt deals, being $3.12 and $.43 million USD respective, which nonetheless, contributed to their significant all time total of $702.67 million USD, keeping them in the top 20 of all time fundraisers active in the past fiscal year.

Figure 5: Top 10 Investments Origin HQ Country, 2023-2024 FY

173.5

Billion USD

Figure 5 shows the global investments in PropTech by country, as organized by the HQ location of PropTech companies. Given the global nature of the PropTech ecosystem it is safe to say that some of the investments in companies headquartered in the United States are going to offices in Europe, much like the earlier established pattern with GIC Singapore, which has a quite active European office. Importantly, GIC Singapore is the investment corporation of the Government of Singapore. With a global network of ten offices in a variety of countries, spanning the continents, GIC Singapore has invested widely across developed market equities, private equity, and real estate, as well as in choice industries, such as the PropTech industry. With an aim of achieving returns that beat out global inflation on the 20-year horizon, GIC Singapore has an impressive longer-term strategy. At the same time, the data shows that the American players continue to dominate the market, having raised a total of $173. Billion USD as of the 2023-2024 fiscal year.

Figure 7 shows the global revenues of PropTech companies from the 2023-2024 fiscal year excluding the United States. As we can see, no country outside the United States is close to the People’s Republic of China in terms of revenue generation for PropTech companies. However, it is somewhat surprising to see that the United Arab Emirates is second on the list, well ahead of India and the United Kingdom. Furthermore, Colombia, Israel, and Egypt are shaking up the mix, coming in alongside Germany, France, and Spain. There is little doubt that the countries that are generating more revenue tend to have more robust PropTech markets, such as China, India, and the United Kingdom, in that their markets tend to be more diverse, and may not necessarily even be dominated by the managing category. As we shall see later, although the Managing category dominated the deals market in Spain this past year, the German market was more evenly split between Building and Managing, while the top deal in France was in the Living category. It is important to keep in mind the balance of the approaches of the four categories of PropTech companies (Building, Investing, Managing, and Living) as we consider investment trends.

Investment Trends

Key Highlights

Decline in number of Proptech investors creates new opportunities for entrants despite fewer players.
JP Morgan: Launched the « Story » platform in 2023 and partnered with Techstars on an $80M fund in 2022.
Techstars: Key investor in PropTech startups, with a focus on diverse entrepreneurs, thanks to their partnership with JP Morgan.
Abu Dhabi Investment: Launched Quanta and Dari platforms in 2022, driving the PropTech ecosystem in the UAE.
Equity Address: A Dubai-based startup that raised $12.5M by November 2023 for fractional ownership of vacation homes.
GIC (Singapore): Named Institutional Investor of 2023, made key investments in Europe (Paddington Central, The Student Hotel) and Latin America (Loft’s $100M Series E).
Growth trends include new opportunities in developing markets, especially in Asia and Latin America, as well as new regions of the United States, despite the saturation of the PropTech market in California and New York

While the number of investors in PropTech has declined significantly compared to the previous fiscal year, this consolidation of the investing side of the PropTech ecosystem suggests that there are, therefore, increased opportunities for new investors to enter the marketplace. Still, prospectors and disruptors should be aware there are some enormous players active in the PropTech investing habitat as well. For instance, JP Morgan in the United States, while having a huge amount of Assets Under Management, is also bringing innovation to PropTech. In 2022, JP Morgan launched its multifamily management platform, called Story. The platform, which was rolled out in 2023, offers property owners and operators streamlined and simplified processes for managing their portfolios, allowing them to scale their businesses more easily. Further, Techstars, one of the most active investors in PropTech startups, has an $80 million USD partnership with J.P. Morgan that was established in 2022 and allowed Techstars to invest in diverse and overlooked entrepreneurs across nine US cities. The fund aims to elevate over 400 companies across major American cities, including in the process of developing new tech hubs in Atlanta, Detroit, New Orleans, Miami, and Oakland, in addition to traditional markets like Los Angeles, New York City, Chicago, and Washington, D.C.

Figure 8: Top Global Investors active in the 2023-2024 fiscal year by Assets Under Management (AUM)

In addition to JP Morgan and Morgan Stanley, other gargantuan investors that have begun to transform the PropTech ecosystem include Abu Dhabi Investment, as the United Arab Emirates, like Singapore, has become one of the relatively small but rich countries that is leading the PropTech revolution. Abu Dhabi Investment, for instance, is a sovereign wealth fund that is owned by the Emirate of Abu Dhabi in the United Arab Emirates, which manages the Emirate of Abu Dhabi’s oil reserves, which contribute substantially to its $1 trillion in managed assets. In 2022, Abu Dhabi Investment launched Quanta and Dari, two new platforms in partnership with Advanced Real Estates Services (ADRES), a key PropTech venture developer. While Quanta is a platform supporting big data analytics, providing information on transactions, supply, financing, and performance, Dari is a company that provides app-based home services, such as cleaning, childcare, car washes, pest control, and other sanitation needs, in addition to property search, sale, rent, and purchase features.

The growth of investing in the Gulf States is not just limited to the United Arab Emirates city of Abu Dhabi but can also be tracked in the city of Dubai. Equity Address is a financial platform that is designed to facilitate the co-ownership of vacation homes as real estate assets. Users invest in a portfolio of homes in prime locations utilizing a detailed dashboard to manage transactions. They access perks such as fractional ownership, future gains, flexibility in scheduling, and shared expenses.

As a relatively young and nimble start-up, Equity Address was founded in 2021 in the United Arab Emirates and capitalized with an initial $100,000 in funding from a group of private investors, including Mohit Gupta, Abhishek Madhukar, Puneet Gupta, and Aashish Raj, several key supporters of PropTech in Dubai. The company raised $12.5 million of venture funding as of November 2023, to further scale their operations, making them a regional leader in fundraising. Indeed, two competing Saudi companies, Konn (Riyadh) and Mabaat (Jeddah) — which specialize in design to build homes for investors and an online rental management platform for short-term travel stays, respectively- have not yet matched Equity Address’ fundraising, despite being relatively similarly sized and aged companies. The success of Equity Address’ fundraising may be an early sign that investments in cultivating PropTech in Dubai are paying off. Although the industry is relatively young in the region, Dubai is emerging as a leader – as also indicated by the choice to host the 2nd Annual Mideast PropTech summit in Dubai in January 2024.

Of course, Abu Dhabi investment is active in markets beyond Abu Dhabi and Dubai as well. Similarly, GIC (Singapore) is a sovereign wealth fund, and represents a relative newcomer to the PropTech ecosystem in that they began investing more directly in PropTech venture funds starting just five years ago in 2019. Active elements of the Europe playbook for GIC Singapore include a Net zero play, which became the first net zero carbon development for the UK in 2020, the London office of Paddington Central – an 11-acre mixed-use development nearby a picturesque canal in the heart of London –where GIC acquired a 75% stake in 2022, and a hybrid hospitality play, combining traditional hotels with other services, where GIC acquired a substantial stake in The Student Hotel in 2022. In October 2023, they acquired a 35% stake in Hotel Investment Partners, an operator of a real estate investment firm based in Barcelona, Spain and also an owner of resort hotels in Southern Europe. Thus, it is not a surprise that Private Equity Real Estate News (PERE News) named GIC the greatest institutional investor in 2023, while also naming them the Hotel and Leisure Investor of the year.

GIC is the second largest investor among active investors as measured by number of investment professionals, indicating that their foothold in the PropTech marketplace can grow rapidly in the coming years. This does not just include Europe, but also Latin America. An example of one of the companies that GIC Singapore has invested in is Loft, which completed a Series E VC round in August of 2023 for $100 million USD in the form of convertible notes from Andreessen Horowitz, Fifth Wall, GIC Singapore, and others, with the aim of using the funds to drive expansion in Brazil and more broadly in Latin America in the coming years. As Loft is an operator of an online property searching platform facilitating the sale, purchase, and rental of both residential and commercial properties, the platform’s planned expansion into Brazil is indicative of a broader observable trend where there is space in developing markets, especially for companies in the Managing Category, even though the Managing category may feel relative saturated and deeply competitive in the United States. Top Active Investors in PropTech are increasingly paying attention to these new opportunity niches in the PropTech ecosystem with each passing year.

Figure 9: Most Active Investors by Raw Number of Investments, 2023-2024 FY

Figure 9 shows the investments made by raw investment count of the most active PropTech investors over the course of the first six months of the 2023 – 2024 fiscal year, as well as the entirety of the 2023-2024 fiscal year. Clearly, many investors made a significant portion of their annual investments, often half or more than half, in the summer and fall quarters of 2023. The top three most active investors were Techstars, Alumni Ventures, and Antler Ventures.

• Techstars was the most active investor for the year, with 17 investments in the first six months, and another ten investments in the second six months, for a total of 27 investments made over the course of the year.

• Similarly, a significant portion of the most active investors, including Alumni Ventures, National Association of Realtors Reach, and FJ Labs had more active investments in the first half of the year.

• Yet, other major players, such as Metaprop, Plug and Play Technologies, and Antler Ventures, seem to have ramped up their investments in the PropTech ecosystem in the winter and spring quarters of 2024

What the data suggests is that there is not necessarily a “best” time of the year to approach these investors for the burgeoning new disruptor, when the reality is that it is best to follow their funding cycles and open calls, as well as attend key events.

Figure 10: Global Top Investors by Dry Powder

While understanding which are the most active investors in the PropTech ecosystem, it is also important to understand which investors have the most “dry powder” – or the measure of cash and low-risk marketable securities that are easily converted into cash – a given investor has at their disposal.

Figure 10 shows the top PropTech investors across the globe ranked by their access to dry powder and categorized by their investor type, along with the country of their headquarters. For instance, the leader by this measure is Ardian, a France-based independent private equity investment company and one of the largest European-headquartered private equity funds, with a grand total of $169 billion in Assets under management. In January 2024, Ardian announced the acquisition of Costockage, a French company that specializes in self-storage.

Costockage was founded as an online marketplace for rental of storage units in 2012. In 2017, they launched Kostok, which operates storage spaces with an innovative digital approach, now at 10 centers, across France. Although the amount of the deal has not yet been disclosed, Ardian has clearly continued its active long-standing investments in traditional real estate, while expanding its horizons in PropTech.

Another expansion by a top investor firm measured by dry powder is Ares Management Corporation, a leading global alternative investment manager with $447 billion in assets under management. Ares also just announced the opening of an office in Japan during the past fiscal year, a move that expands on their existing offices in China, Hong Kong, Singapore, and South Korea. The opening is planned for 2024.

Figure 11: Global Top Investors by Dry Powder to AUM Ratio

Figure 11 shows the top investors by measuring their access to dry powder as a ratio of their assets under management. Here, we see that while Ares Management and Ardian have a significant amount of dry powder, that relative liquidity also represents a relatively large portion of their assets under management, being $447 billion and $169 billion, respectively. Investors on the top of this list, at Andreessen Horowitz, might be more willing to tap large amounts of dry powder when compared to those at Ares Management, as they are less likely to face liquidity issues in the near term and are bolstered by their $42 billion in assets.

Further, Andreessen Horowitz is already a key investor in PropTech companies such as Setpoint, Loft, Divvy, Flow, Flyhomes, and Topkey, to name a few. While Divvy operates a freemium model platform that eliminates fees from the basic usage of their platform and issuance fees for smart credit cards, Flyhomes is the world’s first AI-powered home search. Thus, it is easy to see that investing in new technologies and fundamentally new approaches to existing markets are key features of Andresseen Horowitz’ investment strategy in the PropTech ecosystem. They have also invested in the mortgage technology of Valon, as well as the construction technology of Mosaic and Doxel. To say the least, Andresseen Horowitz’ team has certainly recognized the technological value that PropTech companies are bringing to market.

Figure 12: Top 10 Global investors with an office in Europe by last investment type, 2023-2024 FY

Figure 12 shows the top global investors with an office in Europe for the 2023 – 2024 fiscal year, as measured by their total number of investments. The data is a reminder that it may not necessarily be a European investor that could be involved in some of the biggest and most innovative PropTech plays in the European market. Instead, we have a number of American accelerators that have a significant foothold in Europe, including the giants: Y Combinator, Plug & Play Technologies, and TechStars. These three top players represent the earliest, most active, and most impactful accelerators in the market. Y Combinator, for instance, helped to launch globally renowned companies, such as AirBnb, DoorDash and Coinbase. Plug and Play has raised over $9 billion for its portfolio, boast over 300 VC investors in its ecosystem. Finally, Techstars continues to back some of the freshest and most innovative entrepreneurs on the market, including the leaders of Craftle and Raise Robotics, who feature in the interviews of this year’s barometer. At the same time, these giants are also involved in a variety of investment types. For instance, while BPI France and Y Combinator were recently involved in Later Stage VC deals and Plug and Play was involved in an Early-Stage VC deal, Techstars was involved in a seed round.

Figure 13: Top 10 Deals, 2023-2024 FY

Figure 13 shows the largest deals of the 2023 – 2024 fiscal year. We reported the Intercontinental Exchange (ICE) acquisition in the 2023 Barometer, as the deal was announced already with a plan of merger in May 2022. Black Knight is primarily a data analytics and software company operating to serve the housing finance industry, especially mortgage lending and servicing, but also secondary markets. Thus, the key technology at play could be argued to be Black Knight’s data analytics. However, negotiations that took nearly a year resulted in an amended merger agreement as of March 2023. Shares were then rolled over in August 2023 and the deadline for Black Knight shareholders to submit elections was September 1. Thus, the deal was only finally completed on September 5, 2023, making it the top deal to be completed during the 2023-2024 fiscal year.

Figure 14: PropTech Deals, 2023-2024, by Company Category

Figure 14 gives an overall portrayal of the deals in the PropTech ecosystem over the course of the past fiscal year. As we have indicated above, the performance of the Managing category is now more than half of the market share in terms of funds raised in a single fiscal year. While the long-term fundraising totals, as previously indicated, are much more balanced, the deals completed in the past year were overwhelmingly dominated by Managing category companies. This does not simply include the top six deals in the category, all of which were more than a billion USD each, but it also includes over 150 small deals that were less than a million USD each. The nearest competitor in terms of small deals under a million USD was the Building category, with 106 deals. The reason the numbers of these small deals are significant is because they typically represent the very early initial seed funds of small startups.

A category that is seeding more startups now will almost certainly see a larger share of the market in the future. There is simply more action in the Managing category and it’s worth keeping that dynamic in mind as we consider our global PropTech Update of the past two decades of the industry in Chapter 3.

Chapter 2 – The Annual Update