Sector Snapshot: Proptech Funding Holds Up, But Investors Are Placing Different Bets

Venture funding for proptech startups remains robust, despite not reaching pre-pandemic levels, according to data from Crunchbase. With higher interest rates making real estate an unattractive investment, investors are being more selective and focusing on AI-driven solutions for construction, property operations, and real estate transactions.

This shift is evident in both the largest funding rounds and acquisitions, with much of the activity happening outside the U.S. As of 2026, global real estate-related startups have received approximately $8.7 billion in seed to growth-stage financing, compared to $24 billion in 2019 and $12.3 billion in 2025. The number of deals has also decreased, with 794 transactions so far in 2026, down from more than 2,400 in 2019.

Despite the lower deal count, the sector is seeing significant funding in specific areas, such as AI-driven construction, property operations, underwriting, and transaction infrastructure. Notable deals include Stockholm's Stegra raising $1.6 billion for green steel technology, Madrid's Hydnum Steel securing $695 million, and Amsterdam's Mews closing a $300 million Series D round.

The only U.S.-based company in the top five largest deals was San Francisco's Bedrock Robotics, which raised $270 million in a Series B round. Proptech exits have been more significant in M&A than IPOs, with several large acquisitions focused on acquiring data, workflow ownership, and distribution to build AI products more quickly.