There's been an abundance of sour news over the last couple of months for the proptech industry. By the end of 2023, venture funding for the category dropped by 42.4% year over year. A one-time unicorn (startup with a valuation of at least $1 billion in funding rounds) crashed, burned, laid off all its workers, and got sold off.

It's a concern for CRE companies using the software and hardware from these firms. Will someone disappear from under your feet? Concern that the product line you implemented probably doesn't have the funding it needs to get to where they promised they would eventually be?

But ups and downs in funding and fortunes is nothing new for tech in general, even if they seem to presage future disaster in the development of CRE-related software. Lower levels of investment by venture capital firms may have more to do with the skittishness of VC funds' limited partners concerned about where things might go.