A report from the Center for Real Estate Technology & Innovation (CRETI) indicates a 14.3% decline in venture capital funding for proptech companies in the first half of 2024 compared to the previous year.
The total funding for the sector was $4.37 billion, down from $5.10 billion in the first half of 2023 and significantly lower than the $13.13 billion reported during the same period in 2022. The survey included data from 1,088 proptech startups, highlighting a shift towards prioritizing quality over quantity among investors.
One possible reason for this trend is the current yield on Treasury instruments. As of July 19, 2024, the annualized yield for a 6-month Treasury is 5.24%, while a 10-year Treasury yields 4.25%. These instruments offer attractive returns with minimal risk, particularly appealing during uncertain economic times. Additionally, Treasurys provide strong liquidity, which is less available in venture capital funds.
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By Proptechbuzz
By Ravi Kumar
