RenoRun and Ecobee topped the Proptech in Canada Report.
RenoRun had the top funding round of the year in proptech, while Generac’s acquisition of Ecobee led the year’s M&A activity, according to the 2022 Proptech in Canada Report.
RenoRun’s Series B raise of $181 million in February eclipsed GoBolt’s $115 million Series B raise in 2021, and Nesto’s $76 million Series B financing. Jobber tied Nesto with $76 million in Series C funding.
Since the previous report over 150 startups had been added to the data analysis for a total of more than 450 proptech startups.
Clean energy company Generac acquired smart thermostat startup Ecobee for roughly $1 billion CAD ($770 million USD) in late 2021.
The Proptech Collective, a not-for-profit group that produces the report, noted that since the previous report over 150 startups had been added to the data analysis for a total of more than 450 proptech startups. Twelve new proptech startups made it onto the list of the top 25 most funded, and the top three M&As were responsible for over $1.5 billion.
“It’s exciting to see how much innovation is coming from Canada,” said Courtney Cooper, principal at Alate Partners and co-founder of Proptech Collective. “In the past two years, over 70 new proptech startups were founded in Canada and Canadian startups have attracted significant capital from some of the largest and most well-known international venture funds.”
Cooper added that as the industry matures with increased investment and consolidation, the collective believes Canada will continue to be one of the most strategic locations for proptech innovation globally.
Of the top 25 funded proptech startups in Canada, the top five were RenoRun with $202 million raised to date; prefab construction startup NexII with $126 million; GoBolt with $113 million; tenant screening and payment startup Certn with $108 million; and digital mortgage startup Nesto with $108 million.
The report noted that since Jan 2020, over 75 proptech companies have raised seed rounds.
At the same time, more global money has come calling, with Coatue investing in smart energy startup Dcbel; and Bain Capital Ventures leading Properly’s $44 million Series B round.
When it comes to the number of proptech startups, Ontario leads the way with 251. The next closest province is British Columbia with 80.
Under the proptech umbrella, a number of subsectors have blossomed giving rise to startups that specialize in everything from listings and digital mortgage brokers, to planning and design, and property management.
The report also identifies some of the current key trends. One is alternative financing platforms to make homeownership more accessible. The report noted that, over the last decade, home prices have risen faster than household incomes.
Different solutions have since arrived to help make home ownership more accessible and flexible. They include co-ownership, where a company acts as an investor and joins the homebuyers as an equity partner in the home; and rent-to-own, where a company purchases the home and enters into a rental agreement with the prospective homebuyers.
Some of the players in the alternative financing platform space include Requity Homes, a rent-to-own startup; Key, which offers a co-home ownership program; and fractional real estate investing startup, Willow.
Another trend is the use of technology to improve construction techniques and efficiencies. Among the startups in the space are Bridgit, which offers a project management platform; and construction IoT firm, Giatec.
“Canada continues to be a proptech hub with a thriving technology ecosystem,” said Frank Magliocco, a real estate leader with PwC Canada. “After a pandemic-induced pullback in activity, renewed interest has returned to this asset class given the accelerated adoption of technology in real estate and the keen desire to focus on solving problems through innovation.”
Feature image courtesy Unsplash.