Proptech Investment Data
Commercial Observer
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Venture capital investment in proptech has slowed considerably, according to new figures for the start of 2024. The decline in investment comes amid a wave of turnover in the commercial real estate niche as companies merge and others go out of business. Also for today: Disney World says it’s planning a big expansion, just don’t ask for details.
— Tom Acitelli, Deputy Editor
Proptech Investment Tumbled 80% Last Quarter From 2022 Peak: Report
Venture capital firms appeared more and more tepid on proptech investments in recent months, as the sector’s meteoric growth in recent years continues to subside. Total venture capital investment in proptech hit just below $1.5 billion during the first quarter of this year, a 12 percent year-over-year decrease from the first quarter of 2023 and a nearly 80 percent dip from the first quarter of 2022, when investments in the sector peaked at $7.4 billion, according to a new report from the Center for Real Estate Technology & Innovation (CRETI). The chillier investing environment is likely due to a combination of uncertainty in the global economy and company re-evaluations, the report noted. The space was already on the ropes after it saw some of the lowest funding totals in the first half of 2023 thanks to rising interest rates tightening the flow of money, though things picked up in the second half of the year.
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Disney World Plans Ambitious Expansion In Florida, But Releases Few Details
The Walt Disney Company has proposed a $60 billion investment plan that includes an expansion of the Magic Kingdom near Orlando, although the company is being quiet as a mouse when it comes to details. “It’s probably the largest expansion ever at Magic Kingdom,” Michael Hundgen, Walt Disney World site portfolio executive, told reporters this week at the company’s Walt Disney Imagineering facility in California. A Disney team is conducting research trips and exploring concepts. Hundgen didn’t offer details about when the new project would be built or what the focus would be. Disney is feeling some heat from a major rival. Universal Orlando Resort plans to open a third theme park, Epic Universe, in 2025. During Disney’s annual shareholder meeting Wednesday, the company posed a shareholder question: “Why hasn’t Disney prepared anything, or placed more than just a handful of attractions to be ready for this in 2025 at Walt Disney World?” CEO Bob Iger’s answer: “That just couldn’t be further from the truth.”
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