State of Proptech & Contech in Europe – Q3 2021

By Dimitri Kremp

Following the recent publication of our Q2 infographics, we’ve compiled the data of the 80+ proptech & contech venture deals from Q3 2021 (July – August – September). We used our own data, as well as Dealroom & Crunchbase. To stay true to our early stage focus, we chose only to screen startups & scale-ups across Europe (i.e. companies with less than 250 employees, founded after 2010 & with headquarters in Europe) operating in the prop-tech & contech verticals.

As shown on the infographics above, this data unravels 5 major trends :

  • The total amount of funding for proptech & contech startups is growing still : from €200M in Q1 to €435M in Q2, reaching €625M here in Q3. This growth is not driven by the number of rounds but rather by the amount raised (strong growth in # of €5M+ rounds since Q2). 
  • Marketplaces and Contech are gaining momentum : Marketplaces for RE assets are the most funded businesses, driving the growth in B2C rounds (from 42% in Q2 to now 47%), while Contech rounds (« Design and Build ») now account for 25% of total number of rounds. 
  • Significant rounds well distributed on the 5 market segments : several >5M€ European rounds on the entire value chain of real estate, from financing to construction, transaction and commercialization. 
  • Activity still heavily concentrated in Western Europe : Major western European markets (France, UK, Germany, Spain) gather more than 60% of the registered rounds on Q3. Italy (6 rounds) and Switzerland (10 rounds) are gaining momentum. 
  • Most of the round still focus on light and scalable technologies : « vanilla » tech (Saas / Web platform / Marketplace…) represent +80% of rounds, whereas sector-focused heavy techs (IoT, innovative material, modular construction) account for a marginal number of rounds. 

Following the evolution of these indicators on a quarterly basis is a good way to monitor the expansion of the European  proptech & contech ecosystem. Next time we’ll dive into year 2021, quarter per quarter and as a whole. Stay tuned! 

Axeleo Proptech I is an early-stage fund dedicated to European Proptech and Contech. As part of Axeleo Capital, we offer European proptech & B2B founders a unique support framework combining early-stage investment, a tailor-made acceleration program and direct access to an ecosystem of over 100 seasoned software experts and mentors. Our proptech investments include Propster, Beanstock, Garantme, Check&Visit and Bright Spaces. 

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