Women-Led Firms Raise Record in Proptech Funding
Women-led companies pulled down more than $1.5 billion in funding last year.
Commercial real estate has never been a bastion of general equality, says JLL. But movement on the proptech front shows what can, and should, happen across the industry, because otherwise it’s a waste of expertise, hard work, and potential.
“Women own and manage less than 3% of commercial real estate,” JLL wrote. “They hold just 9% of C-suite positions at real estate firms. Female founded or co-founded real estate companies represent just 2% of the $3.2 trillion of private capital raised, according to PERE data, while an Association of Investment Companies (AIC) study found just 6% of fund managers are women.”
However, last year, proptech showed how things can change. Women-led companies pulled down more than $1.5 billion in funding, according to a 2023 end-of-year post by the Center for Real Estate Technology & Innovation.
“In a transformative year in proptech, a cohort of women-led firms, including Metropolis, EliseAI, Doorstead, Dwellsy, Ox, among others, have collectively secured a staggering sum exceeding $1.5 billion in funding in 2023,” they wrote. Equal to what companies led by men got? No, the total was an invested $11.38 billion. However, they noted that the “trend underscores a significant shift in the mindset of investors, who increasingly recognize and support diversity, inclusion, and strong leadership within the industry.”
CRETI also noted that the average number of investors per company was about 8, showing “broad-based support for these women-led initiatives.”
“Greater societal and shareholder expectations, plus ESG regulations and reporting requirements are all piling on the pressure to act,” said Anne-Lyse Raoul, Head of DEI for JLL EMEA, in prepared remarks. “It means inclusivity is rising up investment agendas.”
But there are still barriers that women face in business, including in proptech. “It’s why female investors often choose to support women-led projects, recognizing the challenges they’re up against,” Raoul said.
“The impact of this trend extends beyond mere representation,” wrote CRETI. “Women-led companies in proptech are often at the forefront of adopting and developing new technologies, from blockchain and AI to sustainable building practices. Their approach frequently includes a focus on user experience and community impact, leading to more holistic and sustainable solutions in real estate.”