The Present & Future of Proptech Pitchbook Report: Record Investment Driving this Fast-Growing Industry

Valley Bank and Bank Leumi USA released the first annual Present & Future of Proptech report that explores industry trends and provides a positive outlook for the nascent property tech category.

Deal making rebounded sharply in 2021, with a record $5.1 billion in capital invested in venture alone across a record 219 transactions. It was developed in collaboration with Pitchbook; Chris Green, Founder and CEO of Greenpoint Partners; Jeffrey E. Berman, General partner of Camber Creek; Simon Jawitz, CIO, Common Living Inc.; Eli Elefant, CEO, PBC USA; Eyal Reggev, LIR Holdings; and Ryan Orley, Managing Partner, Zigg Capital.

“This has been an exciting period for Proptech with the complexities of the current economic recovery from the COVID-19 pandemic representing promising growth and considerable implications for real estate developers and investors,” said Stuart Cook, Executive Vice President, Chief Products Officer, Valley Bank. “This report affirms that Proptech is positioned to benefit as the real estate industry further digitizes its processes and the future is very bright for companies with the foresight to invest and embrace this fast-evolving industry that is leading sustainability advancements,” he added.

Read the full report here.

Key highlights from the report:

• H1 2021 saw the highest volume of venture financing for Proptech ever in the U.S.
• The intersection of technology and real estate has rarely seen as much interest and innovation as in the past few years. A resurgence in funding signifies the proliferation and maturation of multiple companies spanning the key segments of Proptech, from asset utilization to transaction solutions to property management.
• Traditional financial firms that have engaged in real estate investment have benefited significantly from startups offering much-improved data and analytics tool suites, which have helped improve returns via transparency and more efficient projections.
• We believe the future of Proptech will likely unify around two key themes of sustainability and security. Property owners will be required to produce sustainability related data for investors and asset managers, further encouraging the development of even more powerful data platforms. Construction firms will source recyclable materials and sink carbon into substances, such as concrete, to obtain credits.
• We anticipate that Proptech security solutions will also be increasingly important in an era of climate change from a financial perspective. Proptech companies will have to build the tools for institutions and asset allocators to mitigate climate-change-related risk, while builders will also have to invest more heavily in resilient buildings in many hotbeds of development, especially the coasts of developed nations.

Methodology behind the research

Estimates of market sizes and private investment activity within the Proptech space differ widely due to a variety of factors, such technology and types of real estate markets. This report views Proptech through a much more rigorous lens, using the Pitchbook platform to construct five distinct segments: asset utilization; finance and investments; construction, maintenance and renovation; property management; and transaction solutions. You can find more information under the introduction page in the report.

About Valley Bank

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $43 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations across New Jersey, New York, Florida and Alabama, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com.

About Bank Leumi USA

Bank Leumi is a relationship-driven boutique bank with global ties. We’ve been operating in the United States for more than 60 years. Headquartered in New York City, with offices in Chicago, Los Angeles, Palo Alto and Aventura, we serve the communities where our clients live and work. Our commitment to excellence and focus on shared values defines how we do business. Our team of talented banking professionals goes beyond the expected to understand your needs and deliver world-class solutions and the exceptional service you deserve.

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