When interest rates were low, the amount of venture capital dollars flowing into the real estate technology space was high. The inverse of that is also proving to be true. As interest rates climbed in recent years, funding to the space plunged. But now in 2025, as rates have started to lower somewhat, venture dollars raised by real estate tech, or proptech, startups are inching upwards slightly compared to recent years. Capital is largely going to companies that either sit inside core workflows around payments, closings and procurement, or deliver explicit ROI via automation and artificial intelligence. But tech-enabled homebuilders are getting a piece of the pie, too. The broad trend: Even before the pandemic-fueled funding peaks, proptech startups received more than double the amount of venture funding in 2019 than they have in more recent years. While investors haven't given up on proptech, funding to startups in the space is only slightly higher in 2025, and deal count is at a...
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