Discover the 2nd edition of the "Proptech & Contech Index" by AXC & RENT

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Article Date
July 17, 2022

To follow the evolution and trends of the European Proptech & Contech ecosystem, Axeleo Capital and the RENT label publish the second edition of their "Proptech & Contech Index", covering the 2nd quarter of 2022. With more than €740 million raised by EU Proptech and Contech startups in the second quarter, the Index shows that the ecosystem is maintaining its momentum despite the deteriorating economic situation. 

A dynamic that is maintained despite a deteriorated economic situation

More than €740 million was raised in Q2 2022, slightly less than in Q1 (€881 million raised; down 15%), but still much more than in the same period a year ago (€373 million raised in Q2 2021, almost twice as less). This resilience is explained by a higher number of rounds (131 rounds in Q2 versus 108 rounds in Q1), an increase in the number of medium-sized deals and finally by the rise of the "Energy Renovation" vertical (the best example is the €200 million round of 1Komma5° in Germany which provides low-carbon energy solutions for residential housing).

Early-stage investments

There are still very few rounds of financing in excess of €50 million: only two in the second quarter, down from the first quarter (five rounds of financing in excess of €50 million over Q1). Current market conditions seem to be leading to a slowdown in late-stage proptech/contech rounds (sharp drop in rounds of more than €20 million: 8 in Q2 versus 20 in Q1), but this does not impact the dynamism of the early-stage ecosystem (50 rounds between €1 million and €5 million in Q2, versus only 30 in Q1).

An increase in ESG deals

The proportion of startups with a strong impact/ESG dimension reached 33% of financing rounds, up 3 points compared to Q1.

Among the 20 largest financings of the quarter, many companies are positioned on sustainable development topics (Gropyus, Stonal, Vestack...), and more particularly on energy renovation (€200 million for 1Komma5°, €7.7 million for Ecoworks...). With 9 rounds of financing, the "Smart Home & Energy Solutions" segment is the second most financed. This rise in ESG was already observed in Q1, marked in particular by the €150M raise of French startup Deepki, which offers a SaaS decision support tool for the reduction of CO2 emissions in commercial property.

Software technologies still favored by investors

Generally speaking, proptech/contech investors remain focused on lean tools such as SaaS (45 rounds) or Marketplace (18 rounds). With 14 rounds of financing, the most funded segment is SaaS real estate management software (Property Management). In contrast, hardware solutions (Internet of Things, new materials, 3D printing, modular construction, etc.) accounted for "only" 16% of investments and 22% of the number of rounds.

A very visible East/West divide in Europe

France,UK and Germany are the three most dynamic markets, accounting for no less than 75% of investments and 50% of fundraising. France has also been very active, surpassing the UK for the first time in terms of the number of proptech/contech rounds raised, with 27 deals for French startups versus 21 in the UK.

Methodology: The Proptech & Contech Index is based on data from Axeleo Capital's analysis as well as databases, Dealroom and Crunchbase in particular. These data sources mainly gather information on deals and rounds that have been publicly disclosed - many other raises are taking place, but without announcements or communications on amounts (thus difficult to track). The analysis is limited to companies with fewer than 250 employees, founded after 2010, headquartered in Europe, and with a value proposition focused on real estate and construction sectors. We also refer to venture capital fundraising only (i.e., excluding debt, grants, and non-equity financing).

For more information on the Proptech & Contech Index, click here.

To view the 1st edition of the " Proptech & Contech Index " by Axeleo Capital & RENT, please click here.

About Axeleo Proptech I:
Axeleo Proptech I is a €40M early-stage VC fund dedicated to proptech and contech startups across Europe. Axeleo Capital is a venture capital firm active in the European early stage tech scene and supported by a large pool of entrepreneur-investors. Axeleo Capital offers startup founders a unique support framework that combines equity investment, operational and strategic coaching and an active ecosystem of more than 100 high-level partners and mentors. Its Proptech investments include GarantMe, Check&Visit, Prello, Beanstock, Laiout, Bright Spaces...

About RENT:
Created in 2013, RENT (Real Estate & New Technologies) is the must-attend event for innovation at the heart of real estate. The 10th edition of this major European event for real estate professionals (visitors) and technology professionals (exhibitors) will be held on November 8 and 9, 2022 at Paris Expo - Porte de Versailles. RENT is also exporting at a European level with a participation in the 3rd edition of RENT Switzerland on April 6 and 7, 2022 and the organization of the 1st edition of PROPTECH EXPO, in collaboration with SIMAPRO, on May 26 and 27, 2022 in Madrid.