A report by CREtech, a data and event platform, found that real estate tech company investments dropped last year.
Although startups and investor confidence has grown, there was a 23% drop in investments last year compared to 2017.
Proptech experts said this is due to the changing market, economic uncertainty, and the private equity fund field being oversaturated.
Additionally, SoftBank’s $2 billion investment into WeWork may have caused an overall dip.
This deal caused investment numbers to be skewed and left many investors to be taken aback by the spike.
“There was a lot of new money, new venture capital and a lot of new people coming into the space. There was a learning curve,” said Dhinaker Dhandi, a vice president at Altus Group, an advisory services and software company. “Venture capitalists are getting smarter, they want to make sure they’re investing in the right value.
2019 has been off to a rough start as well, with CREtech showing that funding from January to February dropped by about 78%. Thanks to a few last second large deals at the end of the month, February avoided becoming one of the worst investment months on record.