Once high-flying proptech startups Divvy Homes and EasyKnock are the latest to struggle
Proptech startups are facing challenges due to decreased investments, leading some to sell or shut down as funding drops significantly.
MAIN POINTS
- Proptech startups are struggling due to the shift from low-interest-rate environments.
- Investment in U.S. real estate startups fell from $11.1 billion in 2021 to $3.7 billion in 2022.
- Some startups are opting to sell themselves off amid financial difficulties.
- Others are closing operations entirely as funding becomes scarce.
TAKEAWAYS
- The high-interest-rate climate is impacting the survival of many proptech startups.
- A significant decline in investment is evident in the proptech sector.
- Strategic exits are becoming common as startups seek financial relief.
- The current market conditions are unsustainable for some proptech companies.