Venture funding for proptech startups has not yet returned to pre-pandemic levels, as interest rates in the 6% to 7% range make real estate investments more challenging. Global real estate-related startups have raised approximately $8.7 billion in seed through growth-stage financing so far in 2026, compared to $24 billion in 2019 and $12.3 billion in 2025.
The number of deals has decreased significantly, with 794 transactions recorded this year. For comparison, the sector saw more than 2,400 deals in 2019 and 1,446 transactions last year. This trend indicates a shift toward larger round sizes and more selective investor behavior.
Investors are now prioritizing companies with demonstrable ROI, specifically those using AI to optimize construction, property operations, and transaction infrastructure. Generic real estate software and late-stage companies without exceptional growth are facing significant funding challenges.
Four of the five largest deals of 2026 took place outside the United States. Sweden's Stegra raised about $1.6 billion in a private equity deal led by Wallenberg Investments. Madrid's Hydnum Steel raised $695 million at a $3.1 billion valuation, while Amsterdam's Mews raised $300 million in a Series D round at a $2.5 billion valuation.
The only U.S. company in the top five largest deals was San Francisco's Bedrock Robotics, which raised $270 million in a Series B round, bringing its total funding to over $350 million with a valuation of $1.75 billion. Montreal's Nesto raised $216 million in a Series E round at a $1.47 billion valuation.
M&A activity is stronger than IPOs. Autodesk acquired MaintainX for $3.6 billion in cash. EquipmentShare conducted an IPO in January, raising approximately $859 million including shares sold by existing holders, with primary proceeds of about $747 million.
