Figure 38 shows the median deal size in the PropTech industry by month for the 2023-2024 FY set in comparison with several competing industries. In June 2023, for instance, the median deal size in 3D printing was more comparable to smaller industries, like Virtual Reality and EdTech. However, in July 2023 and January 2024, 3D Printing had a higher median than any other competing industry besides Autonomous cars. The PropTech industry was much more consistent across the fiscal year, with median deal sizes ranging from $1.19 million USD in September 2023 to $3.4 million USD in February 2024. For the months with relatively smaller deals, PropTech was most comparable to Virtual Reality, AgTech, and EdTech. For the months with the higher medians, PropTech is more comparable to eSports, Climate Tech, FinTech and Robotics and Drones. Of course, the medians of certain industries may be relatively low, because there are a very significant number of small deals completed in those industries. A good example of this would be AI/Machine Learning. The best performing month for AI/Machine Learning had a median deal size of $3.775 million USD in May 2024, although the average month in the year would see a median deal size of around $2 million USD, making the median deal size roughly comparable to the average month of the PropTech industry’s median deal size across the fiscal year ($2.05 million USD). And yet, we hear much more about AI in the news than PropTech, while AI is also widely regarded as a hotter industry. To explain the discrepancy between the data and public perception, we can examine the raw count of deals across the year to begin to ascertain the root cause of these apparent discrepancies.
Figure 39 shows the raw count of PropTech deals by comparison with competing industries for the 2023-2024 fiscal year. As we can see, the very strong industries that are renowned for the amount of capital involved, including AI/Machine Learning, FinTech, and HealthTech have a very large number of deals that have been completed during the fiscal year. Yet, the evidence from Figure 39 suggests that a much larger number of deals in these industries are very small, making companies working in those spaces quite vulnerable to the market forces of consolidation and compression. Industries that are more comparable to the amount of activity present in the PropTech Industry range from AgTech (1,677 deals) to Robotics and Drones (1,929 deals) and EdTech (2,086 deals). By considering all measures thus far, this suggests that the PropTech industry is most comparable in terms of the amount of deal activity and the size of the median deal to the Robotics and Drones industry.
Figure 40 illustrates the top deals of select competing industries of the 2023-2024 fiscal year. As we can see, the most significant amount of capital was raised in the FinTech, Climate Tech, and Artificial Intelligence/Machine Learning (AI/ML) industries, while HealthTech was also quite significant. The largest deals were GE Vernova ($38 billion USD, Climate Tech), ShockWave Medical ($13.1 billion USD, HealthTech) and Worldpay ($12.5 billion, FinTech). GE Vernova, despite being an off spin of a major market player, was the shakeup of the season. GE Vernova was spun out of General Electric as a combination of nuclear, hydroelectric, steam, and wind power technological solutions. Their mission is to electrify the planet while simultaneously decarbonizing it. In a surprisingly stellar performance, the company raised $38.9 billion USD in its initial public offering (IPO) on the New York Stock Exchange on April 2, 2024. Additionally, the company’s total revenue placed well above its comps set mean ($3.73 billion) at a grand total of $33.76 billion USD.
