A recent report from the Center for Real Estate Technology & Innovation (CRETI) says that venture capital funding for proptech companies fell 14.3% year over year in the first half of 2024.

Total funding for the sector was $4.37 billion. That was down from $5.10 billion in the first half of 2023 and $13.13 billion during the same period in 2022, according to the survey of 1,088 proptech startups. It suggests that investors are becoming more cautious, with a "prioritization of quality over quantity."

Another potential explanation is that current yields of Treasury instruments — the 6-month at an annualized 5.24% or 10-year at 4.25% as of July 19, 2020 — continue to present attractive opportunities to investors who want decent returns with little risk in turbulent times. Treasurys also offer strong liquidity, something not so available in VC funds.