Global venture financing for real‑estate‑related startups has not recovered to pre‑pandemic levels, according to Crunchbase data. In the first four months of 2026, proptech firms raised about $8.7 billion across seed to growth stages, far short of the $24 billion recorded in 2019 and below the $12.3 billion raised in 2025. Deal volume has also contracted, with 794 transactions logged so far this year compared with more than 2,400 in 2019 and 1,446 in 2025.
Higher borrowing costs are a key factor. Interest rates have hovered between 6 % and 7 %, making real‑estate investment less attractive and raising the bar for startups seeking capital. During the COVID‑19 pandemic, mortgage rates fell to as low as 2.5 %, fueling a surge in proptech financing, especially in the United States. The current environment has prompted investors to be more selective, favoring companies that can demonstrably reduce costs or accelerate processes through technology.
The shift is evident in the composition of the year’s largest rounds and acquisitions. Four of the five biggest deals to date occurred outside the United States. In Europe, Stockholm‑based green‑steel startup Stegra secured a $1.6 billion private‑equity transaction led by Wallenberg Investments, giving the investor a majority stake. Madrid‑based Hydnum Steel raised $695 million in a venture round led by Cofides, valuing the three‑year‑old firm at $3.1 billion. Amsterdam’s cloud‑native hospitality platform Mews closed a $300 million Series D at a $2.5 billion valuation, with EQT Growth as lead investor.
Among U.S. firms, San Francisco‑based autonomous construction tech company Bedrock Robotics raised $270 million in a Series B co‑led by Valor Atreides AI Fund and CapitalG, bringing total funding above $350 million and valuing the company at $1.75 billion. Montreal’s AI‑driven digital mortgage provider Nesto completed a $216 million Series E in June, valuing it at $1.47 billion.
Exit activity in 2026 has been modest, with a single notable IPO. EquipmentShare, a Missouri‑based construction‑equipment rental firm with a job‑site technology platform, priced 30.5 million shares at $24.50, raising roughly $747 million in primary proceeds (about $859 million including secondary sales). M&A activity, however, has been robust. Autodesk’s $3.6 billion cash acquisition of AI‑enabled maintenance platform MaintainX was the largest proptech deal of the year. Other significant transactions include Compass’s $1.6 billion all‑stock purchase of Anywhere, Procore’s $845 million cash acquisition of DroneDeploy (plus a smaller deal for DataGrid), CoStar Group’s $800 million purchase of housing‑market data provider Zonda, and The Real Brokerage’s $880 million acquisition of RE/MAX Holdings, creating the Real REMAX Group.
A recent PwC and MetaProp report highlights the growing role of artificial intelligence in proptech. Companies are deploying AI to cut costs, improve decision‑making and automate routine tasks, extending the sector’s focus beyond traditional property‑management software into construction, energy, infrastructure and climate technology.
Overall, while proptech funding remains well below its pandemic‑era highs, investor capital is increasingly directed toward firms that can deliver measurable efficiency gains, particularly in construction, building operations and real‑estate finance. The sector’s landscape is evolving, with AI and green‑steel startups emerging as the new focal points for venture dollars.
