Funding in the Smart Buildings sector is at an all-time high as the first half of 2021 shows deal values of over $5.1B, according to researchers at Memoori. This figure has surpassed the previous record by over 5% compared with the second half of 2018 ($4.9B) and by over 14% in the second half of 2020 ($4.5B). In terms of the number of transactions, Memoori recorded 170 funding rounds, a decrease of around 12% from the second half of 2020, when over 190 deals were identified.
Although the number of deals decreased, we are seeing an increase in US dollar values across all types of funding. Seed funding, Series A to E rounds and growth capital all attracted higher levels of investment in the sector,” explains Daphne Tomlinson, Senior Research Associate at Memoori.
The Proptech segment attracted over 30% of funding rounds this half year. The Memoori “proptech” definition focuses on real estate technology which addresses the management and operational phase of the commercial and industrial building lifecycle across ten technology areas. It therefore excludes technology for the design, construction, purchasing, financing, leasing and sale of commercial real estate. Of note were investments in areas such as Workplace Management, Occupancy Analytics, and Tenant Experience solutions for the office sector Mapiq, Locatee, Nuvolo, Density, Deskbird, Equiem, Maptician, Saltmine, Space OS & Pointgrab.
Platforms for specialised vertical markets was also a notable sector for funding. This area involves retail sector-focused startups developing checkout-free technology and AI-enabled computer vision solutions for convenience stores, including Grabango, Standard Cognition, Trigo, Trax and Zippin. In addition, companies involved in Asset and Maintenance Management are a focus. The companies use a range of technologies including image recognition, AI, robotics, satellite data, and automated platforms to accurately assess building inspection, compliance, and facility maintenance requirements – Arturo, Spotr.ai, Wemaintain, Viabot, Uptick, Maintain X, Safehub and Satsense.
A noticeable trend in this half-year was investor backing for later stage funding and growth capital, indicating a greater level of maturity and confidence in the smart building sector, with increased $ values in Series C, D, and E rounds. For example, project financing of $500M was completed by Greenstruxure, a developer and operator of microgrids. The Schneider Electric and Huck Capital joint venture will offer customers in medium-sized U.S. commercial and industrial facilities a turnkey Energy as a Service solution that gives them the energy outcomes they need to meet their business and sustainability goals with no upfront capital outlay and no operational risks
