Many believe that WeWork is symptomatic of a larger PropTech bubble, which is beginning to burst in front of our eyes. Despite this sentiment, the failed WeWork IPO has yet to slow larger funding rounds in the real estate tech space.
- Be Smart: Excessive funding and questionable valuations ultimately hurts startups. Founders have shown that it enables them to shy away from innovation and disruption as the cash provides the resources necessary to mimic their traditional competitors with slight variations. While SoftBank’s portfolio tends to receive most of the attention, the fundamental problem exists in the majority of startups in the commercial real estate space. True disruption is rare and all revenue is not created equal.
- Worth Noting: Online transaction platform, Ten-X Commercial laid off half its workforce last week after a failed attempt to sell itself to CoStar, Newmark Knight Frank, and others, according to TRD.
Here are funding announcements from the past two weeks that were most likely struck before the WeWork debacle:
- Co-living startup Bungalow has raised a $47 million funding round from Coatue, Founders Fund, Khosla Ventures, and A-Rod Corp. The fresh equity round brings Bungalow’s total haul to $68 million. (Fortune)
- Workplace management platform, Eden has raised a $25 million Series B round led by Reshape. Participants in the round include Fifth Wall Ventures, Mitsui Fudosan, RXR Realty, and Thor Equities. (TechCrunch)
- Qualia Labs has raised a $55 million Series C round led by Tiger Global. The platform seeks to streamline the closing process when buying a home. (WSJ)
- Snapdocs has raised a $25 million Series B Round to streamline the manual mortgage processes by digitizing wherever possible. (VentureBeat)
- Juniper Square has raised a $75 million Series C funding round led by Redpoint Management. The platform seeks to help commercial real estate firms manage their investments. (Bloomberg)