This report includes an update on investments by category with detail on investments in residential, commercial, and mortgage. Take a look as to how one sector fares vs another in this quarterly highlight.
Early stage. Late stage? This report analyzes the investment by stage, whether its marked by angel rounds through Series B rounds or funding often associated with companies focused on scaling and maturing their businesses. Insights inside.
The update includes highlights of transactions in real estate by strategic and financial acquirers. Find out which companies are making moves to grow through acquisitions this year.
Investment in real estate technology in 2020 decreased notably to only 46% of 2019 levels:
- COVID-19 and the economic shutdown have depressed or delayed funding events. Early activity in 2021 appears to indicate activity picking back up.
- Funding in 2019 included several very significant, mostly late-stage funding rounds that totaled $1.6 billion for iBuyers Offerpad, Knock, OpenDoor, Orchard and Flyhomes.
- Excluding the effects of the iBuyer funding, 2020 investment was 83% of 2019
Special Purpose Acquisition Vehicles (SPACs) had a resurgence in 2020 in the real estate sector, as they did more broadly in the market. The trend continues, and could be a prelude to a growth in M&A consolidation among those companies going forward.
There was strong M&A activity in 2020, particularly among strategic buyers in residential real estate (including rental) and this trend shows all signs of continuing in 2021:
- CoStar Group continued to be very active, acquiring Ten-X in May and HomeSnap in December.
- Strategic companies including realtor.com, RE/MAX, OJO Labs, Elm Street Technology and ATTOM Data Solutions all grew through acquisition in 2020 as well.
About T3 Sixty
Exclusively serving the residential real estate brokerage industry, T3 Sixty provides management consulting and counseling to real estate C-level executives, organized real estate leaders, broker-owners and leaders of high-performance teams to help them grow their businesses. T3 Sixty also offers in-depth research, information and best practices with its hallmark Swanepoel Trends Report, an annual analysis of the biggest trends impacting the industry, and the Real Estate Almanac, a comprehensive examination of the U.S.’s largest brokerages, franchises, networks, associations, MLSs and technology providers.