Proptech Funding Stabilizes in 2026 with AI
Global proptech funding is on pace to match 2025 levels at about $8.7 billion, far below the 2019 peak. Investors are now highly selective, favoring AI-driven construction, green steel, and transaction infrastructure startups with clear ROI, with four of the year's five largest deals happening outside the U.S.
Global proptech startups have raised approximately $8.7 billion in venture funding so far in 2026, according to Crunchbase data. With four months remaining, this puts the sector on track to roughly match the $8.7 billion raised in all of 2025, though it remains far below the $24 billion peak in 2019.
Higher interest rates, now hovering between 6% and 7%, have made real estate a tougher investment environment compared to the pandemic period when mortgage rates dipped as low as 2.5%. This has led to fewer deals and a higher bar for startups seeking capital. Deal count has fallen significantly to 794 transactions this year, down from 1,446 in 2025 and more than 2,400 in 2019.
Investors have not abandoned the sector but are being more selective. They are concentrating capital on companies using artificial intelligence and other technology to make construction, property operations, and real estate transactions faster and less expensive. At the same time, more generic real estate software and later-stage companies without exceptional growth face significant funding challenges.
Largest Funding Rounds of 2026
Four of the five largest proptech deals this year occurred outside the United States, with a notable focus on green steel manufacturing. The three largest rounds all took place in Europe.
| Company | Location | Amount Raised | Valuation | Round | Key Detail |
|---|---|---|---|---|---|
| Stegra | Stockholm, Sweden | $1.6 billion | Not specified | Private Equity | Green steel startup; deal led by Sweden's Wallenberg Investments |
| Hydnum Steel | Madrid, Spain | $695 million | $3.1 billion | Venture | For green steel plant; round led by Madrid-based Cofides |
| Mews | Amsterdam, Netherlands | $300 million | $2.5 billion | Series D | Cloud-native hospitality management system; led by EQT Growth |
| Bedrock Robotics | San Francisco, USA | $270 million | $1.75 billion | Series B | Autonomous construction tech startup |
| Nesto | Montreal, Canada | $216 million | $1.47 billion | Series E | AI-powered digital mortgage startup |
Stockholm-based green steel startup Stegra secured the year's largest haul, a $1.6 billion private equity deal in June that made lead investor Wallenberg Investments its majority owner. In August, Madrid's Hydnum Steel raised $695 million at a $3.1 billion valuation for its green steel plant. Amsterdam's Mews, a hospitality management platform, closed a $300 million Series D in January at a $2.5 billion valuation.
The only U.S. company in the top five was San Francisco-based Bedrock Robotics, which raised $270 million in a February Series B co-led by Valor Atreides AI Fund and CapitalG. Montreal's Nesto completed the list with a $216 million Series E in June.
Major Acquisitions and the Sole IPO
Merger and acquisition activity has been robust in 2026, significantly outpacing the market for initial public offerings. The broad acquisition trend centers on incumbents buying data, workflow ownership, and distribution to build credible AI products more quickly, according to Crunchbase.
The largest deal was Autodesk's $3.6 billion cash purchase in May of MaintainX, which operated an AI-powered equipment maintenance platform. MaintainX had been valued at $2.5 billion in 2025 after a $150 million Series D.
Several other large acquisitions focused on brokerage consolidation and construction technology. In January, Compass completed its all-stock $1.6 billion acquisition of Anywhere, a deal that reportedly made it "the world's largest brokerage." Construction tech giant Procore announced in July it was acquiring DroneDeploy, a reality-capture software provider, for $845 million in cash. Also in August, CoStar Group completed an $800 million cash purchase of housing-data provider Zonda, and The Real Brokerage finalized its $880 million acquisition of RE/MAX Holdings.
The only significant proptech IPO this year was by EquipmentShare, a Missouri-based construction equipment rental company with a jobsite technology platform. It raised about $747 million in primary proceeds in January by pricing shares at $24.50.
The Expanding Role of AI
Artificial intelligence is moving from testing into everyday use across real estate and construction. A recent research report from PricewaterhouseCoopers and MetaProp titled "Proptech's Impact on Real Estate Innovation and Transformation" states companies are using AI to cut costs, make better decisions, and handle routine work more efficiently.
Meanwhile, the proptech sector is expanding beyond property-management software into construction, energy, infrastructure, and climate technology. Investors and buyers increasingly favor businesses that can demonstrably save customers time or money, particularly in construction, building operations, and real estate finance. The sector now includes companies that look quite different from those funded in years past.
