Insights
Despite a decline from 2019’s record capital raising levels, investment into the U.S. PropTech market remains incredibly active with ~$7.3Bn of equity and debt raised across nearly 300 deals in the category in 2020
Market Update: PropTech 2020 Year-End Review
EXECUTIVE SUMMARY – 2020 PropTech
- Despite a decline from 2019’s record capital raising levels, investment into the U.S. PropTech market remains incredibly active with ~$7.3Bn of equity and debt raised across nearly 300 deals in the category in 2020
- 58 deals of $20M+ in equity invested and 28 deals with $50M+ in equity investment ➔ scale leaders emerging across all sub-categories within PropTech and investors backing established category leaders
- $100M+ investment rounds in 2020 into Vacasa, Sonder, Better, Hippo, Katerra, Procore and many others
- M&A market remained highly active with ~100 U.S. PropTech M&A deals in 2020 ➔ majority of M&A activity was driven by strategic buyers, but private equity activity increasing
- Valuation multiples in the market continue to remain strong, especially for software businesses, with the NASDAQ up ~44% in 2020 – Rise of SPACs (Special Purpose Acquisition Companies) with focus on PropTech
- Opendoor, Porch, Open Lending, Vivint and United Wholesale Mortgage all announced SPAC mergers with multiple additional PropTech-focused SPACs looking for targets
- Successful and pending IPOs reflect continued significant public market demand for PropTech companies
- GCA expects continued strong PropTech market activity in 2021 given the momentum and tailwinds in the sector