Venture funding to proptech startups remains down from pre-pandemic peaks and 2019 highs, as higher interest rates in the 6% to 7% range make real estate investing less attractive. Investors are becoming more selective, directing capital toward companies using AI and technology to streamline construction, property operations, and transactions. Four of the five largest deals in 2026 have occurred outside the United States, reflecting this geographic shift.

Global proptech startups have raised about $8.7 billion in seed- through growth-stage financing so far this year, compared to $24 billion in 2019 and $12.3 billion in 2025. Deal count has dropped to 794 in 2026, down from over 2,400 in 2019, signaling fewer but larger transactions. Notable deals include Stockholm-based Stegra’s $1.6 billion private equity round led by Wallenberg Investments, Madrid’s Hydnum Steel’s $695 million venture round at a $3.1 billion valuation, and San Francisco’s Bedrock Robotics raising $270 million in a Series B.

Investors are favoring AI-driven, high-ROI opportunities while generic real estate software and later-stage firms without exceptional growth face funding challenges.