Big money investors have already reshaped the real estate landscape in recent years, but at least one venture capitalist thinks that trend is only going to accelerate as more firms with deep pockets warm up to the industry.
Investors poured $135 billion into startups overall in 2018, a surge up from between $70 billion and $80 billion in the prior several years, said Patricia Nakache, a general partner at investment firm Trinity Ventures. She spoke Friday at Inman Connect Las Vegas.
However, the number of actual deals held relatively steady — meaning that funding round sizes are generally getting bigger. She expects that trend to play out in the real estate technology space as well.
Nakache pointed to companies such as WeWork (now part of the larger We Company) as well as Opendoor as driving an interest among investors for real estate startups. Softbank‘s activity in the sector has also piqued rival venture capitalists’ interest, she said. Softbank is a huge Japan-based firm that has invested in both of the above companies as well as in Compass.
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