Proptech Funding in 2025: Following the Money All Over

There were discernible trends in proptech funding in 2025. But you could be forgiven for having had trouble finding them. Even those deep in the field had divergent takes on where the money went. 

A number of founders and investors saw funding flow more toward proptech companies focused on multifamily and fintech for real estate, but away from office and industrial providers.

Some of the largest proptech fundings in recent years involved the sector’s intersection with fintech, said Brendan Wallace, CEO and chief investment officer at Manhattan-based venture capital firm Fifth Wall.

“The convergence of fintech and proptech has historically produced the biggest outcomes in proptech,” said Wallace. “So, when you look at the biggest proptech exits and private market valuations, you have two that stand out — Opendoor, kind of the 800-pound gorilla in the cohort, and Bilt, which raised $250 million at a $10.75 million valuation this year. Both of these are fintech companies that are a mix of proptech and financial services.

“Now we are seeing a repeat of the convergence of fintech and proptech continuing to produce the largest outcomes in the category. Financial services for the real estate category continues to be the largest value driver and the most cash-consumptive category of our space.”

For example, Fifth Wall and Ribbit Capital were the lead investors in Juniper Square’s $130 million Series D round in 2025, which valued the company at $1.1 billion, said Wallace. “From 2020 to 2025, by far the largest name is Bilt. And we believe that Juniper Square will be right on its heels.”

An example of heavy investment into housing-focused proptech— along with the ubiquity of artificial intelligence and the growing health care sector — is this year’s $250 million Series E funding of EliseAI, which has surpassed $100 million in annual recurring revenue.

AI-powered proptech companies such as EliseAI are growing in importance, investor interest and value, but Minna Song, co-founder and CEO of the company, noted the growing pressure to prove AI can deliver.

“There’s been a sizable shift away from surface-level AI in housing,” Song wrote in an email. “The industry has learned that chatbots or simple Q&A tools don’t fix the operational problems that slow teams down. The real interest is in technology that can go ‘10 layers deep’ into a workflow, routing maintenance issues efficiently, coordinating steps across systems, managing leasing tasks, and freeing up teams to focus on more impactful work. The companies that will keep attracting capital are those solving the actual operational pain points, not simply adding another layer on top of them.”

A more general and multifaceted view of proptech funding trends in 2025 was offered by John Huber, national lead on venture coverage at Wells Fargo Technology Banking.

“Multifamily and residential tech led the way, driven by demand for digital leasing, property management automation, and tenant experience tools,” Huber said.

However, Huber deviated somewhat from others in saying, “Industrial and logistics followed closely, thanks to e-commerce growth and supply chain resilience. Office tech saw selective investment in hybrid-work solutions, while retail has lagged.

“There was a clear pivot toward industrial and multifamily tech from traditional office-focused solutions,” he said. “Also relevant is the shift in stage to more mature, project-ready and scalable technologies which are attracting a wider array of equity and debt capital providers.”

Also, contrary to others, Huber found overall proptech funding down in 2025. 

“While still healthy, we expect to see overall funding from private equity and venture capital in 2025 tracking to $16.5 billion versus $19.4 billion in 2024,” he said. “This drop reflects a pullback in earlier-stage venture to later-stage infrastructure-type builds. Importantly, we see capital now being deployed across a wider range of providers, which we view as supportive of a healthy and maturing market and one well positioned for continued momentum into 2026.”

Specialist proptech VCs like Fifth Wall, Camber Creek, MetaProp and Zigg Capital remained active this year, alongside corporate venture arms such as JLL Spark, he added.

Jameson Hartman, a vice president at RET Ventures, saw clear shifts in proptech funding.

“Multifamily continued to attract capital in 2025,” Hartman wrote in an email. “Even in a tighter macro environment, operators remained committed to adopting technology that drives efficiency and supports centralized operating models. And 2025 was effectively ‘the year of leasing,’ as technology tied to the resident journey and leasing funnel saw the greatest increase in customer demand and, as a result, investor activity.

“This included innovations in screening, customer relationship management platforms, marketing automation, resident experience apps and geo-optimization tools. The common thread across these solutions is their ability to drive measurable revenue impact and reduce labor intensity — two top priorities for operators in the current market.”

Construction technology also drew a decent amount of investment, though funding was concentrated around proven solutions with existing track records of performance, said Hartman. “Unlike the frontier-tech enthusiasm we saw in 2022 and 2023, investors in 2025 favored tools with demonstrated ROI and clear use cases.”

Speaking to a more niche area of proptech funding, Adam Segal, CEO at Washington, D.C.-based Cove, a leading commercial building operations and tenant engagement platform, saw significant money invested in parking technology, including EV charging.

“There’s an opportunity to reduce the operational needs on the parking side, and technology can be a great gateway,” said Segal. “We will integrate with that. It’s part of how we provide a solution for the building. So it’s just really cool that when you think about office experience, what is tangential to that or that ecosystem?”

William Gottfried, CEO at PropUp, an Austin, Texas-based company that provides a centralized maintenance platform for residential real estate, pointed to funding moving toward a certain sort of proptech platform.

“In 2025, proptech funding narratives began shifting toward the operational backbone of real estate,” Gottfried said in a statement. “With rent growth still stagnating in many major markets, investors prioritized products that directly protect margins, especially maintenance and multifamily operations. With budgets tight and margins tighter, real estate professionals are looking for every angle to carve out additional NOI.” Not surprisingly given PropUp’s focus, he added: “Streamlining maintenance is the best way to do it, and investors have started to notice.”

Gottfried said that he saw most funding activity coming from proptech-focused VCs, family offices and strategic real estate investors with industry familiarity. Generalist VCs were active, too, but more selective.

Fifth Wall’s Wallace made a stronger point about generalist VC funding in proptech.

“What is largely driving investment into the category is generalist VCs — non-proptech-specific VCs have become extremely interested in the category once again,” said Wallace. “Opendoor was not funded by proptech VCs or corporate VCs. It was funded by generalist VCs. And I think Fifth Wall was probably the only proptech VC that was invested in that company. The bulk of their capital was raised outside the proptech ecosystem. And, if you look at the bulk of Bilt’s capital, it has been raised outside the proptech ecosystem. I’d say most of their capital comes from generalist VCs.”

Moreover, Wallace sees other dynamics that affected proptech capital markets in 2025, including the retreat of corporate funding.

“Corporates have stopped investing,” he said. “There is far less activity from real estate corporations that are investing directly into proptech. It’s a trend that has been happening for the past three years. I think a lot of real estate companies are focusing on their core, as their business has struggled with a higher interest rate environment.

“There are a lot of funds that have significant amounts of dry powder, so you’re still seeing activity,” Wallace added. “Obviously we’ve still been active because we have dry powder, and I know some of the other funds do, too, but there’s far less than there used to be. What is largely driving investment into the category are generalist VCs. They’ve become extremely interested in the proptech category once again.”

Philip Russo can be reached at prusso@commercialobserver.com.