As public proptech sector expands, revenues and deal activity surge

Publicly traded proptech firms generated $13.5B in Q2 revenue, up 61% from 2019

National /
Sep.September 13, 2021 08:30 AM
Public proptech company revenues up 71% as M&A surges

(iStock)

The publicly traded proptech sector is getting larger, more active and more crowded. It’s also generating a lot more cash than it used to.

Public proptech firms pulled in an estimated $13.5 billion in revenue in the second quarter, according to a report released last week by the investment bank Keefe Bruyette & Woods. That’s up 71 percent from the period last year, when shutdowns halted much of the U.S. economy, but also up 61 percent over the same period in 2019.

A larger roster of companies helped generate the gains. Twenty additional proptech firms went public over the last year through IPOs and SPAC mergers, including Blend Labs’ $360 million IPO in July and Procore’s $635 million IPO in May.

The sphere should continue to grow due to the “strong appetite” for proptech in the SPAC market, KBW said. Nine proptech and real estate services-focused SPACs — with combined buying power of more than $8 billion — are seeking acquisition targets, and another 12 have “notable ties” to proptech and real estate, according to the report.

M&A activity is expected to accelerate as leaders emerge from the large, chaotic field of small proptech players, KBW said. This year, there have already been 155 deals globally through August — a record pace — up roughly 80 percent compared to comparable periods in 2020 and 2019.

The second quarter saw 56 mergers or acquisitions targeting proptech companies, the second-highest total on record, trailing only the first quarter of this year, when 59 deals were recorded.

Venture funding continues to flood the space, with roughly $7.9 billion put to work this year, as of early September. There was a marked slowdown in venture financing during 2020 due to the pandemic, but the 2021 year-to-date total outpaces 2019 financing, the current record, by 27 percent.

“The rebound in proptech venture capital investment activity in 2021 has been broad based by stage/size, but led by a surge in mid- and late-stage deal activity,” KBW said.






    Related Articles

    arrow_forward_ios
    Two more residential and life sciences buildings greenlighted in Fulton Market
    Two more residential and life sciences buildings greenlighted in Fulton Market
    Two more residential and life sciences buildings greenlighted in Fulton Market
    RT Specialty Doubles office space in move to Third Millennium building in West Loop
    RT Specialty Doubles office space in move to Third Millennium building in West Loop
    RT Specialty Doubles office space in move to Third Millennium building in West Loop
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Leo Burnett tower among properties to be bought in $660M deal
    Leo Burnett tower among properties to be bought in $660M deal
    Leo Burnett tower among properties to be bought in $660M deal
    Cook County Assessor Fritz Kaegi with Aon Center, Willis Tower and Aqua Tower (Getty, Facebook via Kaegi)
    Chicago’s trophy landlords infuriated as Kaegi boosts property assessments
    Chicago’s trophy landlords infuriated as Kaegi boosts property assessments
    Sterling Bay is unloading Fulton Market’s Hyatt House Chicago
    Sterling Bay is unloading Fulton Market’s Hyatt House Chicago
    Sterling Bay is unloading Fulton Market’s Hyatt House Chicago
    Blue Owl Capital agrees to buy Oak Street Real Estate in $950M deal
    Blue Owl Capital agrees to buy Oak Street Real Estate in $950M deal
    Blue Owl Capital agrees to buy Oak Street Real Estate in $950M deal
    Fulton Market West building signs three new tenants
    Fulton Market West building signs three new tenants
    Fulton Market West building signs three new tenants
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...