Market Insight: Commercial Proptech Investment Trends H2 2022-H2 2023

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Executive Summary

This report examines commercial proptech investment deals between July 2022 and July 2023. Technology vendors and investors can use this report to understand the key trends, top deals and expected near-term future outlook for the proptech market. Proptech funds and investors invested just over $2.5 billion over this period in firms with solutions targeted at commercial application. This report breaks these use cases down into five areas: construction management, commercial property management, operational management, workplace management and retail management. The proptech market experienced some difficulties over this period, amid recession fears and high interest rates, although some firms continued to gather strong funding. Workplace management solutions generated the most funding, while businesses with energy management and ESG use cases also withstood investment headwinds. Looking forward, enduring economic uncertainty will continue to impact the proptech market until the cost of borrowing and lending eases. 

Table of contents

Proptech funds invest $2.5 billion across the commercial real estate sector from H2 2022 to H2 2023
Proptech funds close 161 deals from July 2022 to July 2023
Early-stage proptech funding backs innovations in contech, energy and space management
Sustainability and security software firms draw in capital despite market uncertainty
Proptech is not immune to the general tech bear market trend, with proof points critical

Table of figures

Figure 1. Proptech category definitions
Figure 2. Regional breakdown of investment rounds
Figure 3. Number of investment rounds per funding stage
Figure 4. H2 2022-H2 2023 proptech investment levels by category ($ m)

About the authors

Ben Readman

Industry Analyst
Ben is an Industry Analyst in the Verdantix Smart Buildings practice. His current research agenda focuses on ESG strategies and technologies for real estate, and corporate real estate technology investment strategies. Ben Joined Verdantix in 2021, having previously worked as a researcher at CECAN and as a sustainability officer for the NHS. He holds a Masters in Environmental Strategy from the University of Surrey and a BA in Geography from the University of Birmingham.

Claire Stephens

Research Director, Smart Buildings
Claire Stephens is Research Director of the Smart Buildings team. With 18 years of experience in the sector, Claire is recognized as an expert in industries that make up the built environment, in particular, corporate and commercial real estate, and workplace and sustainability technologies. At Verdantix, Claire will be digging into building technology for building owners, occupiers and investors, focusing on how to support them in reaching their ESG objectives. Prior to her arrival at Verdantix, Claire launched Asia’s first corporate real estate, green building and building technology publications. She has also delivered full lifecycle real estate consultancy services covering a broad range of asset types in industries including financial services, oil and gas, pharmaceuticals, technology, consumer goods, media, retail and hospitality.

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