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$18B of M&A in Proptech in 2021

Oct 27, 2021 — Written by Josh Fraser

Jones Lang LaSalle estimates the surge of the number of property technology businesses attempting to introduce high-tech to the property segment. The increase is thrice to 8,000 during the last ten years.

The increased players have resulted in some area reduction too. As of late August, proptech M&A had reached over 18 billion dollars, on course to exceed the 21.9 billion dollars in M&A conducted in 2020. According to JLL, money is still flowing toward more renowned industry experts and those whose solutions have proven effective during the covid 19 crisis.

In a statement, Raj Singh remarked that the real estate sector is on the edge of profound change led by mainstream technology uptake. Mr Raj is the Managing associate of JLL Spark. JLL Spark is the worldwide venture fund of JLL Technologies.

The firms of the United States acquired over 50% of the 97 billion dollars raised by tech-enabled real estate startups in the last ten years. The majority of those companies are based in New York, LA, and the San Francisco Bay region.

Let's take examples of some firms:

SmartRent merged with Fifth Wall's debut Special Purpose Acquisition Company (SPAC) for a 2.2 billion dollars IPO in the previous month. According to founder Lucas Haldeman, his firm acquired 450 million dollars in cash in the acquisition context. These funds will be utilized to expand locally and worldwide and possibly be a selective acquirer to enhance in-house product growth. As the real estate market upswing in the United States persists, Haldeman predicts a merging of the multi-dwelling and mono rental sectors. Multifamily operators are vying for a piece of the single-family rental bucket and opposite.

Rhove, a novel property fractional investment app, has developed and will shortly allow customers to spend small amounts of money and cryptocurrency in independent commercial houses using only their smartphone screens. Co-founder Calvin Cooper stated that he hopes to enable crypto local end-to-end trades in the future, with all aspects of the work valued in Bitcoin and other cryptocurrencies. On the other side,

Roofstock, a single-family rental investment portal located in Oakland, plans to offer a fractionalization offering soon this year. This product is to capitalize on the spike in market demand for single-family lease inventory. Investors with as little as 5,000 dollars can participate.

Homelight, a San-Francisco business that intends to make home purchases easier by letting customers make cash bids, has secured 100 million dollars in a Series D round, valuing the company worth $1.6 billion. The Series D funding will be used to expand the group's range of financial solutions that allow for risk-free transactions.

Divvy Homes has received an additional $200 million in equity funding. The firm plans to grow to 20 areas from 16 by the close of 2021. Its target audience in tertiary and secondary marketplaces is residences priced between $100,000 and $350,000.

Bungalow, a shared renting marketplace, acquired $75 million in its Series C investment, with intentions to expand in Sun Belt secondary markets.

ICON, a construction technology business that prints three-dimensional homes, has received $207 million in Series B capital.

A further construction-tech portal, Agora, secured 33 million dollars in Series B investment.

Reali, a company that aims to make getting a second home easier, raised $250 m in its series B deal. Before spreading nationwide, the corporation looks forward to growing its business in California.