Investments into real estate technology dip for third month in a row

Aly J. Yale
The Mortgage Reports contributor

Are VCs done with real estate tech?

Is investment into real estate tech finally starting to wane? According to new data, it just may be — and fast.

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VC investments drop significantly

According to the recent December Venture Capital Report for RE: Tech, VC funds invested 96 percent less into real estate technology last month — a drop of more than $3.2 billion.

In November, VCs invested $3.28 billion, In December, it was just $108 million.

“In December 2018, global venture capital investments in total deal and dollar volume in property tech companies continued plunged in activity,” RE: Tech reported.

The total number of companies funded was also down for the month, decreasing by 8.3 percent over the month. December marked the third consecutive month that investments dipped into real estate technology.

Digitizing real estate: Experts predict these tech trends in 2019

All hope isn’t lost

Despite the recent drop-off, VC investments into real estate tech aren’t over just yet. December’s biggest funding deal went to collaborative workspace company NeueHouse, with a whopping $30 million in VC investments.

Juniper Square, a real estate investment management platform out in San Francisco, also received serious funding. VCs invested $25 million into the company last month alone.

Shopping for a luxury home? New AR tech can help you find the perfect one, a property analytics firm from Oakland, California, received $13 million in funding, while WhyHotel, the pop-up hotel giving Airbnb a run for its money, got $10 million. Other companies to get VC backing last month included Dazhu, Facilio, Home Hero, BuildSupply, Residently, Wealth Migrate, Populus Coworking, Lane, Howsy, Propseller, Vesta Property, Propzie and Geowox.

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Get today’s mortgage rates

Regardless of where current investment trends head, real estate technology has made buying a home easier, more efficient and more affordable in recent years. Want to save even more on your home purchase? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Sep 25th, 2021)