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Investment in the PropTech market continues to accelerate, and Q3 2021 saw continued strong momentum in growth capital investment and M&A activity in the category – 2021 remains on track to be a record year in the sector

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Market Update: US PropTech Q3 2021

Contact: Chris Gough

EXECUTIVE SUMMARY – Q3 2021 PROPTECH MARKET UPDATE

  • Investment in the PropTech market continues to accelerate, and Q3 2021 saw continued strong momentum in growth capital investment and M&A activity in the category – 2021 remains on track to be a record year in the sector
    • Over ~$4Bn in equity and debt growth investment into the U.S. PropTech market in Q3 2021 across ~124 investments
    • YTD 2021 equity and debt investment of nearly $13Bn is on pace to set a new record for total invested into the category
    • 24 financing rounds north of $50MM and 13 financing rounds over $100MM in Q3 2021 into leaders such as Landis, HomeLight, Pacaso, built and multiple others
  • Continued activity in the M&A market, with 40 transactions, ~90% of which were driven by strategic consolidators – M&A activity in 2021 on pace for a record year
  • Public market momentum and valuations remains very healthy, although SPAC market activity declined in Q3
    • Kin Insurance and Vacasa announced SPAC mergers, but overall SPAC market activity was down in the quarter as PIPE market tightened

GCA is the global leader in PropTech advisory, having announced our 10th PropTech transaction YTD in 2021. We are seeing continued strong momentum across all categories of PropTech and expect strong deal activity to continue in the sector

 

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