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JLL reports record high proptech numbers

The JLL data says that the number of property tech firms has surged 300 per cent in the last ten years. This embraces the chance to solve the industry's most enormous difficulties through technologies.

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The first six months of 2021 witnessed a total of 9.7 billion dollars in financing activity that shows the most prolific first half in history.

Furthermore, the market matures as investment shifts into big corporations, and increased mergers propel leading companies' development.

As per the Head Researcher of JLL, Mr Ben Breslau, even as property automation was increasing before the COVID-19, it is now becoming a need for today's premier real estate companies, towers, and areas. He claims that technology is at the heart of the most significant trends framing corporations and realty. Hybrid jobs, health & security efforts, and sustainability efforts are all prevalent. As a result, JLL anticipates a record-breaking investment in this area this year. 

The Changing Prop-Tech Environment

Innovations multiplied during the fourth Industrial insurrection hastened by the COVID-19 pandemic to use advanced processing power, analysis, and communication. As corporations seek to utilize these new technologies, the number of businesses in the property sector has risen dramatically in the last 10 years, from about less than 2,000 to roughly 8,000.

With that stated, investment and mergers and acquisitions have shifted to more recognized sector competitors.

Shifts in venture capital & mergers and acquisitions

During the last decade, approximately 8,000 businesses that provide technological solutions in building design have generated over $97 billion in equity capital, according to JLL. Startups in the building sector may now be found in almost every country on the planet.

  • In line with the global IT sector, the United States remains the leading source of startup ideas and funding, accounting for half of all funded businesses throughout the last decade. The most popular areas with most proptech firms are NY, LA, Chicago, San Francisco, etc.
  • Even though China has far fewer organizations, it is the world's second-largest capital marketplace, with over$16 billion collected since 2010. Beyond China, the main markets for financing in Asia - pacific region were India, Singapore, & Australia. 
  • The United Kingdom and Germany account for the large portion of funding in Europe, next France, Spain, and Sweden. 

While the outbreak stimulated interest in new technology, it also influenced investment for early-stage realty enterprises. The sector is also showing some maturing indications. 

  • As per the sources, the number of early-stage ventures fell by 11 per cent YOY in the previous year. According to JLL, venture capital equity financing for building design technologies has slowed, falling 19 per cent to $13.4 billion in 2020 from $16.6 billion in 2019.
  • Nevertheless, funding has picked up in 2021, featuring $9.7 billion in H1 fundraising operations, high from $8.8 billion in last year's H1 and the most robust first half in history.
  • As the industry evolves, investment is shifting toward more incumbent firms, with the mass of funds going to later-stage investment rounds and offerings with high post-COVID adoption rates.
  • This maturing, along with a more challenging funding climate, is causing the sector to consolidate. M&A activity reached a new peak of $21.9 billion in 2020, and it has already surpassed $18 billion this year.

About JLL:

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JLL Technologies is a global leader in realty services that assist businesses in changing how they buy, run, manage, and enjoy spaces.

JLLT is a one-of-a-kind team that combines high-growth tech company developers with commercial property professionals. Its broad technological array of purpose-built products and premier venture-backed startups meets sector demands for enhanced business analytics, workplace experience, plus smart infrastructure networks.


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