Third edition of the "Proptech & Contech Index" by AXC & RENT!

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Article Date
November 7, 2022

To follow the evolution and trends of the European Proptech & Contech ecosystem, Axeleo Capital and the RENT label publish the third edition of their "Proptech & Contech Index", covering the 3rd quarter of 2022. Although there is a significant decrease in the total amount raised by European Proptech & Contech startups compared to Q1 & Q2, the early stage ecosystem is still active with more than €570M raised over Q3. 

A significant decrease in funding compared to Q1 and Q2, but the early-stage ecosystem is still active

More than €570 million was raised in Q3 2022. This represents a significant decrease compared with Q1-22 (highest quarter with more than 1B€ raised) and Q2-22 (€748M raised). But the activity is still here and we’re in line with the numbers of Q3-21 (588M raised on same period one year ago). This remaining proptech and contech activity is still very much driven by early-stage startups: on Q3, +60% of rounds are under €5M (Pre-Seed and Seed), whereas we see only 5 rounds > €20M. 

Proptech & Contech are increasingly driven by Impact

+40% of Q3 rounds are raised by startups with ESG as core business (up from 33% in Q2) - Green energy solutions for homes and buildings (BMS, home energy infrastructure, PVs…) represent the most funded line of business. On top of that, 22% of the startups which raised funds have at least one female founder (up from 15% last quarter).

UK, GER, FRA VS the rest of Europe

The vast majority of investments is still captured by the deepest real estate markets : UK, France, Germany gather most rounds (UK is especially far ahead this quarter) and +60% of investments. Italy is also picking up with 19% of total Q3 investments.

Real estate fintechs and transaction tools still favored by investors

Real estate Finance (Crowdfunding, Fractional ownership, Mortgage Lending...) and Real estate Transactions (iBuying, Digital brokers, Shared Ownership…) are the most dynamic segments with the largest rounds (Clubfunding, Casavo, Perenna, Myne Homes, Bricks…) and the highest share of capital raised (33% of total amount raised for Finance & Invest, 28% for Market & Transaction) - but Contech is picking up with large rounds as well (011h, Disperse, Alcemy, Modulous…) and 15% of the total amount raised.

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 and 2nd edition of the " Proptech & Contech Index " by Axeleo Capital & RENT, please click here and 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.