After a subdued 2020, proptech startups are inundated with cash and 2021 is already shattering funding records. $3 billion valuations on investments of hundreds of million are commonplace.
A crop of startups are trying to modernize a market where most transactions are still done through realtors and paperwork. The sector is especially attractive to VCs because tech savvy millennials now account for the biggest share of homebuyers.
"The real estate industry's recognition of its imperative to adopt technology has never been more palpable, even relative to 2020 when there were questions about the future of certain asset classes," said Vik Chawla, a partner at Fifth Wall, a proptech VC firm.
Halfway through 2021, VC dealmaking in residential real estate has topped $6.2 billion, according to PitchBook. That compares to $5 billion raised during all of last year and 2019's $5.4 billion total.
Here are the hottest proptech startups ranked by how much capital they have raised in 2021, according to Pitchbook:
- LendInvest: $681 million raised this year. $1.55 billion total raised.
This London-based operator of a peer-to-peer mortgage financing platform reportedly plans to announce going public as soon as next week. Backers include J.P. Morgan, which poured in over half a billion dollars earlier this year.
- Generation Home: $453 million raised this year. $461 million total raised.
Another London-based startup aiming to shake up the $11.8 trillion mortgage industry, Generation Home eases the qualifying process for first-time homebuyers. The startup raised $30 million of Series A funding in a deal led by Mithril Capital Management earlier this month and also received $422.2 million of debt financing.
- Loft: $425 million raised this year. $694 million total raised.
A Zillow for Brazil, Loft is an online property searching platform that helps users buy, sell, and rent properties. The startup raised a $425 million Series D funding led by Baillie Gifford Japan Trust and D1 Capital Partners in March, which was one of one largest ever funding rounds for a Brazilian startup. Prominent backers include Andreessen Horowitz, Tiger Global Management, and SoftBank.
- Homeward: $371 million raised this year. $521 million total raised.
One of the stars of Austin's growing tech scene, Homeward is a reflection of how competitive the housing market has become. It helps homebuyers make all cash offers and purchase their next house before selling their current one. Homeward raised $371 million of debt and Series B funding in May in a deal led by Norwest Venture Partners.
- Blend: $300 million raised this year. $689 million total raised.
This San Francisco startup that helps homebuyers get mortgages filed paperwork to go public last week. It raised $300 million of Series G funding led by Tiger Global Management and Coatue Management in January at a $3 billion valuation.
- QuintoAndar: $300 million raised this year. $636 million total raised.
Based in Sao Paolo, Softbank-backed QuintoAndar is a Brazilian digital real estate marketplace focused on long-term residential rentals. The company raised $300 million of Series E funding led by Ribbit Capital in May at a hefty $3.7 billion valuation.
- Thumbtack: $275 million raised this year. $699 million total raised.
San Francisco-based Thumbtack is a home management platform that helps users find cleaners, painters, and handymen. It raised $275 million earlier this month in a deal led by Qatar Investment Authority at a pre-money valuation at $3.2 billion. Sequoia and Tiger Global Management were also part of the round.
