Ash Zandieh

Commercial global real estate tech investment volumes increased in April. According to research from CRETech, tech investment in the industry increased 13% last month over activity in March 2019 with 18 deals totaling more than $1 billion. Year-over-year, CRE tech investment increased 121%. US companies led this activity, accounting for 88% of all venture investments and 48% of deal volume.

“Globally, the residential real estate market received the most attention in April with 62% of all deals going to residential real estate tech companies, totaling $665.7 Million in venture funding. On average, two of seven real estate tech companies that received funding were residential transaction platforms, with the largest capital raise going to Perch,” Ash Zandieh, chief intelligence officer, tells GlobeSt.com. “In terms of vertical,  three of seven real estate tech companies, either in residential, commercial, hospitality, construction, or others were marketplace startups, including Lyric and Selina.”

Despite the increase in total deal volume, the report also shows total dollar volume decreased. Month-over-month tech investment dollar volume decreased 24%, and the median funding amount decreased 72% month-over-month to $6.5 million. However, April was the second consecutive month when tech investment surpassed $1 billion. “Overall venture investments in real estate tech companies remained strong in April, especially on the heels of a healthy economy and robust real estate market in urban core markets,” says Zandieh. “Deal and dollar volume will be a by-product of the cyclical nature of capital markets.”