The pandemic and resulting economic toll has presented challenging headwinds for startups. In this post we look back on Q2 ending funding trends for real estate technology startups to determine the trajectory of innovation in this emerging technology sector.
Below we see that the number of funding events per quarter has been on a downward trend, with 61 deals closing in Q2. This implies that new innovations in the real estate technology sector are slowing down as measured by the volume of disruptive companies attracting investments.
That said, below we can see that for the companies that are getting financed, the average funding per deal has been on an upward trend with a record average deal size of $103M in Q2. This implies that the market is bullish on the traction and growth potential of these real estate technology startups.
In summary, while the number of real estate technology companies getting financed has cooled, those that are closing funding rounds are adding record sums of money to their war chests. These well capitalized startups are well positioned to scale new innovations and business models.
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