TechCenter

Big Tech Is in Big-Layoff Mode, but Proptech Might Not Be and Here’s Why

The reason that major tech companies are shedding people comes from a completely different dynamic.

No one is saying that proptech hasn’t been feeling some pain. Even as of October, both investors and startup founders had a drop in confidence in the sector. According to a count by the Center for Real Estate Technology & Innovation (CRETI), while proptech companies raised $19.8 billion in total globally from venture capital firms in 2022, that was down 38% from 2021’s nearly $32 billion and represented the second lowest investment year since 2018.

“The narrative in the proptech industry continues to change along with the macro real estate environment,” the organization explained. “Real estate organizations have adopted a more defensive position as entrepreneur-founders and investors navigate through a cautiously conservative landscape. Market volatility continues to persist due to monetary policy, rising interest rates, and recessionary fears.”

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Erik Sherman

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