Venture capital funding for proptech took a hit in 2023 according to data from the Center for Real Estate Technology and Innovation (CRETI).

"The proptech sector in 2023 observed a recalibration of venture capital flow, amounting to $11.38 billion, reflecting a cautious investor sentiment, one that was foreseen by CRETI in 2022," they wrote. "This recalibration represents a 42.38% dip from the $19.75 billion invested in 2022 and a significant 64.44% decrease from 2021′s investment high of $32.0 billion. The retraction in investment can be attributed to a market normalization following a period of intense growth and bullish investment behavior driven by digital acceleration during the pandemic years."

The organization says that the decrease isn't a reflection on the importance of the proptech sector in commercial real estate. Instead, "it reflects a broader market correction and a return to pre-pandemic investment levels." But the statement oversimplifies the issue, because a return to pre-pandemic investment means any growth during the time since 2019 has largely dissipated.