WeWork is launching its own cafe and marketplace in New York’s Flatiron neighborhood under the company’s Made by We retail sector.
2018’s biggest real estate tech deals
2018 has proven to be a huge year for the real estate market and the tech industry, which is becoming richer by the second. Although the top real estate tech deals of the year may be familiar names, the impact they are placing on the market is astounding.
Coworking giant WeWork takes the first and second spot of the list with its $3 billion and $1 billion round of investments from Japanese-based company SoftBank, putting the startup at a $45 billion valuation. SoftBank is seeing some resistance from its investors, so the future of this powerful partnership is up in the air.
In third is construction startup Katerra, who raised $865 million from SoftBank in January, but has faced some setbacks in expansion.
OpenDoor, an online platform that buys and sells single-family homes, raised $725 million in which SoftBank contributed $400 million.
“We were planning to launch a city a month,” CEO Eric Wu said. “and now we’re planning two a month.”
Compass raised $400 million this year from, once again, SoftBank. Partnering with Qatar Investment Authority, the investors put Compass at a $4.4 million valuation.
Sonder, an apartment hotel startup, raised $85 million in a Series C funding round led by Greenoaks Capital, which then they used towards leasing 169 apartments on 20 Broad Street in New York City.
Another coworking company that made the list was New York City-based Industrious, with $80 million from Fifth Wall Ventures and Riverwood Capital. The company avoids long-term leases with landlords in favor of hotel-style management agreements, where revenues and profits are split between the landlord and operator.
Procore, another construction startup on the list, raised $75 million. The company sells an app that tracks construction sites progress.
Women-only coworking space The Wing takes the 9th spot with $75 million led by Sequoia Capital.
Rounding out the list, New York-based coworking operator Knotel raised $70 million in April and $60 million in October led by Newmark Knight Frank and the Sapir Organization, the Wolfson Group, Moinian Group and Wainbridge Capital. The company is expanding at lightning speed with over 100 locations as of December.
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