The 26 hottest proptech startups of 2023, according to venture capitalists
Alex Nicoll, AJ LaTrace, Kelsey Neubauer, Jordan Pandy, Daniel Geiger, Alcynna Lloyd, CatherineBoudreau, and Dan Latu
Mar 23, 2023
- Real-estate-tech companies aim to make construction, homebuying, and other processes more efficient.
- Last year VCs invested $19.8 billion into these property-technology, or proptech, startups.
- We surveyed venture capitalists to identify the hottest proptech companies right now.
In 2022, the surging proptech industry ran headlong into a period of high interest rates and prospects of an economic slowdown, chilling growth in a sector that had fed off hot real-estate and tech markets for more than a decade.
Proptech investment tumbled by nearly 40% in 2022 compared with 2021, from $32 billion to $19.8billion. Startups had to reckon with lower valuations, stingier checks from venture capitalists, and greater uncertainty surrounding public offerings. This year seems to promise more of the same.
But that doesn't mean all of proptech's promises have fizzled.
Real estate and construction remain some of the least digitized industries, creating opportunities for tech-savvy entrepreneurs no matter the state of the market. For example, an increased focus on environmental sustainability is driving climatetech to the forefront of an industry that sorely needs it.
In times of austerity, however, these startups must focus on profitability over growth. Some will be mintedas winners of their segments, perhaps through acquisitions or the collapse of their competitors.
Climatetech and AI-powered tools are major themes of the proptech industry in 2023, just as they are in the wider venture world. Venture investors are looking for companies that can help improve housing affordability and serve the growing ranks of investors that need to manage properties and relationships with tenants.
And while commercial real estate undoubtedly faces more trouble ahead, institutional landlords need to keep track of their existing deals and plan new ones, with the help of tools from elite software to cellphone location data. Proptechs are there for that.
Insider asked more than 20 venture investors who focus on real-estate and construction technology to nominate the most exciting proptech startups in 2023.
Read more here: https://www.businessinsider.com/top-proptech-companies-startups-2023-3