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Equity and debt raised in U.S. PropTech was up 69% y/y in 2019 to $9.0Bn, reflecting continued momentum for growth companies in the PropTech sector

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Market Update: PropTech 2019 Year-End Review

Contact: Chris Gough

Another Record Year in PropTech M&A & Growth Equity Investment

  • Equity and debt raised in U.S. PropTech was up 69% y/y in 2019 to $9.0bn, reflecting continued momentum for growth companies in the PropTech sector
    • 78 deals of $20MM+ in equity investment, a 105% increase over 2018 → scale leaders emerging across all categories and investor appetite remains strong to continue to back “winners” with incremental capital
    • iBuyers and alternative RE financing firms are some of the biggest growth capital recipients in 2019 with major investments into companies like Opendoor, Ribbon, Point, Figure and many others
  • Significant M&A activity with 104 PropTech M&A deals in 2019
    • M&A driven primarily by strategics, but financial sponsors (e.g. Silver Lake, Lovell Minnick, etc.) and sponsor backed strategics (e.g. Ellie Mae, MRI, Lightbox, etc.) remain highly acquisitive as well
    • Consolidation driven by economies of scale and the emergence of platform tech providers across different end markets (e.g. Lone Wolf in RRE, Building Engines in CRE, Procore in ConTech, etc.)
  • Sentiment for continued PropTech investment and M&A in 2020 remains strong with 96% of investors expecting either an increase or the same amount of M&A activity in the next twelve months
  • GCA remains one the most active M&A and growth capital advisors in the PropTech segment globally, having advised on 6 deals in the sector in 2019 and 24 in the sector in the past 3 years
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