2020 Q3 Highlights

Get the update on funding for residential real estate. Released in November 2020

Investments-by-Category

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.

Investments-by-Stage

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.

M&A Activity

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.

Report Highlight

Two major effects are apparent in reviewing investment in real estate technology in 2020:

  1. COVID-19 and the economic shutdown have depressed or delayed funding events
  2. 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

Reviewing year-over-year trends shows funding is significantly down in 2020 YTD in the number of companies funded and total dollars invested; however the 2019 iBuyer funding effect is notable as well:

  1. 2020 YTD total real estate funding is 30% of full-year 2019
  2. Excluding the effects of the $1.6 billion of iBuyer funding, 2020 YTD is 54% of 2019

There has been strong M&A activity in 2020 YTD, particularly by strategic buyers in residential real estate (including rental):

  1. CoStar Group continued to be active, acquiring RentPath in February and Ten-X in May
  2. OJO Labs acquired Movoto’s residential real estate search site and collaboration platform in June

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.