D
uring periods of low interest rates, venture capital poured into proptech, but the recent rise in rates has sharply reduced funding. In 2025, as rates began to ease, capital for real‑estate tech startups has modestly rebounded, favoring firms embedded in core payment, closing, and procurement workflows or those delivering measurable ROI through automation and AI. Tech‑enabled homebuilders also attract investment.
Overall, proptech funding peaked before the pandemic, with 2019 receiving more than twice the capital of recent years. Although investors remain interested, 2025 saw only a slight uptick in total funding and a record low in deal volume. Private equity participated in three of the five largest deals that year.
Crunchbase data shows that 2025 global real‑estate startups raised roughly $10.2 billion from seed to growth stages—57 % less than 2019—and the number of deals fell 58.3 % from the 2,722 deals in 2021. The decline in deal count reflects both waning investor appetite and larger round sizes.
Key 2025 megadeals included:
- Homebound (Santa Clara) secured $400 million ($300 million real‑estate capital, $100 million operating) to become the “Amazon of homes.” The AI‑driven platform cuts build time by 40 % and costs by 25 %, quadrupling revenue and sextupling margins since 2021, with profitability projected for 2026. Total capital raised to date is $530 million, backed by Thrive, Gaingels, Khosla, Craft, Forerunner, and Goldman Sachs.
- Bilt Rewards (New York) raised $250 million at a $13 billion valuation, up from $3.1 billion in January 2024. Since its 2021 launch, it has raised $800 million, with investors including General Catalyst, GID, Eldridge, Fifth Wall, Wells Fargo, and Camber Creek.
- EliseAI (New York) closed a $250 million Series E at $2.25 billion, led by Andreessen Horowitz with Sapphire, Navitas, and Bessemer. The company, founded in 2017, has raised $392 million and offers AI‑guided tours, lease audits, and a maintenance app to reduce costs and enhance tenant experience.
Adam Wiener, former Redfin executive and president of Lower, predicts a near‑term transformation driven by AI that will reshape home discovery, purchase, financing, and management, creating new leadership opportunities in proptech.
Other notable 2025 raises:
- Arrived Homes (Seattle) received $27 million from Jeff Bezos‑backed investors to launch a fractional real‑estate marketplace.
- Tidalwave (New York) secured $22 million Series A for its agentic‑AI mortgage platform.
- Ridley (Delaware) raised $6.4 million seed led by Fifth Wall to offer commission‑free home sales.
Despite the modest rebound, the funding outlook remains cautious. Most large rounds involved private equity and later‑stage financing, and unless rates decline further, 2026 is likely to mirror 2025’s pattern.
