A study by CREtech showed that investors plowed over $9.5 billion into real estate tech (PropTech) in 2018. This 23% increase in PropTech investment from 2017 demonstrates the drive to disrupt the real estate industry with new systems and technologies.
As VCs and investors are beginning to back real estate tech, funds are now being deployed toward harnessing the benefits of blockchain technology. With crypto real estate projects on the rise, investors are starting to target PropTech blockchain solutions that tackle ease-of-use, costly intermediaries, and asset tokenization.
So, who’s making early moves in the blockchain real estate investment market? Here are our top VCs and investors pumping money into disrupting the real estate sector with blockchain.
Based out of Chicago, Secondary Century Ventures targets real estate technology companies. They have had multiple successes to date in PropTech innovation, such as Home Captain, a tech-enabled marketplace for real estate; and Notarize, a live video notary service. Branching out further into blockchain, Second Century Ventures have contributed toward the $15.5 million in funding for Propy, a blockchain property investment platform.
Honing in on investments in real estate and construction technology, Navitas Capital has several Proptech companies on their books, including Cherre, a real estate data company; Truss, a marketplace for commercial properties, HQ0, a tenant experience platform, and PeerStreet, a crowdfunding platform for property investment. Having pumped $51 million into real estate technology in 2019 alone, Navitas has dipped their toe in the blockchain water by investing $28 million in Harbor, a blockchain project digitalizing real-world assets.
Having already invested $20 million into Reali and $2 million, both PropTech marketplaces, Signia Venture Partners has invested 28 million into their first real estate blockchain projects. Focusing on seed ventures, Signia Venture Partners invests in a wide spectrum of tech sectors but appears to be reaching further into real estate technology, especially in terms of asset tokenization.
Perhaps one of the most well-known investors in start-ups, especially in the tech arena, Andressen Horowitz has been particularly avid in the blockchain space for a while. Simultaneously, the prominent VC has been investing in real estate technology, such as Divvy Homes ($30 mil), an accessible homeownership platform; FlyHomes ($21 mil), an end-to-end online home broker, and PeerStreet ($29.5 mil). Following in the footsteps of other big tech investors, Andressen Horowitz has also deployed $28 million to the compliance-based real estate tech company, Harbor.
California-based Fifth Wall prides itself on being the largest VC firm to focus on global PropTech.All of their investments are geared toward disrupting the real estate sector using platforms such as States Titles, an insurtech company for real estate; VTS, a platform for landlords; and Lyric, a data-powered real estate oracle for business travelers. Also investing in Harbor as their first blockchain real estate tech investment, Fifth Wall is supporting the company to the tune of $10 million.
Born in Australia, 808 Ventures now has offices in Silicon Valley, London, and Perth. Having raised $16 million in funds since its inception in 2016, the small VC firm has backed PropTech company GuestReady with $9 million so far. It recently jumped on the blockchain real estate bandwagon, injecting $2.5 million into blockchain rental marketplace, RentBerry.
Founders Fund is based in boosting visionaries across the tech sectors, having raised over $2 billion in capital management currently. While Founders Fund isn’t limited to real estate projects, they have invested in both Bungalow, a home rental platform; and WanderJaunt, a property management solution for homeowners traveling around the world. With a few blockchain projects on the books already. Founders Fund has also taken the strategic step into funding blockchain PropTech, by investing $28 million into Harbor.
Moderne Ventures is both a venture fund and an acceleration program that targets technology firms across the real estate, insurance, home services, and finance verticals. Encouraging an ethos of innovation, Moderne Ventures is already mingling with a catalog of real estate technology firms. The VC has invested in Easy Knock ($12 mill), a tech-based home liquidity platform; Swelo ($2.3 mill), a smart home platform; ICON ($9 mill), a home construction technology firm, and Leaselock, an insurtech company that focuses on tenant security deposits. Forking into blockchain projects in 2019, Moderne Ventures is now backing real estate oracle data service, StreetWire.
Israel’s top VC company, Magma Venture Partners is limited to early-stage investments in tech start-ups. While still small, the company has diversified its portfolio to include various future-tech projects in AI and IoT. Having invested $38 million into property management software, Guesty, Magma is also branching out into blockchain by investing $9.5 million in Real, the full blockchain real estate broker.
Counterpart Advisors is a huge private equity and VC firm based in California. Relatively selective with investments, Counterpart Advisors has made 19 large investments since it was founded. With a slant toward tech, the company has pumped $30 million into the online home-selling platform OpenDoor, showing its support toward PropTech. Counterpart Advisors have also had their hands in the blockchain pie, having invested $15 million into blockchain real estate buy/sell platform, Rex.
Bain Capital Ventures targets innovative founders looking to disrupt various sectors using tech. Stage-agnostic, the VC company has ploughed money into industrial, enterprise, and infrastructure software globally. Recognizing the disruptive nature of PropTech, Bain Capital Venture invested a total of $32 million so far into SmartRent, a property management system for internal property controls. Reaching its tendrils out into the blockchain space, Bain Capital has put over $60 million into RoofStock over the past few years.
A stage-agnostic investment company, FJ Labs focuses its investments on consumer-facing products and marketplaces. In reference to real estate technology, FJ Labs has invested a few a PropTech marketplaces for buying and selling property, including Properly ($12 mill) and Knock ($400 mill). F J Labs also invested $15.5 million into liquidity PropTech company, Easy Knock. Roofstock, the blockchain-based marketplace for leased single-family homes, has received $7 million from FJ Labs, as the investment firm diversifies into the blockchain ecosystem.
All Iron Ventures has a keen eye for start-ups building companies using marketplace, e-commerce, and subscription models. Though not strictly limited to tech or real estate, All Iron Ventures has consistently supported the advancements in these areas, having backed Miami-based home buying marketplace, Home61 ($4 mill) and online real estate platform, SpotAHome ($15 mill). All Iron Ventures also injected $70 million into tech-based mortgage company, Lending Home. Also delving into the blockchain pool, the VC firm has now invested $7 million into RoofStock.
Focusing on early-stage investment in technology companies. Canvas Ventures has already invested over $160 million into tech start-ups this year. While real estate isn’t its primary interest, the company has a penchant for marketplace models and has invested over $20 million into end-to-end real estate brokerage platform, FlyHomes. Interestingly, they have taken a major crypto plunge into the blockchain project, RoofStock, plowing $42 million of investment into the real estate blockchain marketplace.
Tied to Silicon Valley Bank, SVB Capital is a venture capital investment firm that specializes in direct investments and funding funds. SVB Capital has a broad portfolio in multiple arenas but has recently turned significantly toward real estate technology, bolstering OpenDoor with a whopping $290 million investment. With a few blockchain projects on the books, it makes sense for SVB Capital to branch into real estate blockchain projects, with an investment of $7 million to RoofStock.
Started in 2004, Khosla Ventures is perhaps one of the most well-known tech VC firms. With a strong look toward eco-friendly disruption, Khosla Ventures tries to pick projects that align with this ethos. In terms of reducing the friction and impact on the real estate sector, Khosla has already invested in PropTech platforms such as OpenDoor and Bungalow, as well as WanderJaunt, a property management software for landlords who are on holiday, and Mighty Buildings, affordable housing technology. Known for its involvement in blockchain investing, Khosla has recently funding blockchain Propech, with an investment of $7 million into Roofstock.