2022 concluded with a record $9.67B in venture capital (VC) funding flooding into built world innovations (over 330 deals tracked by BuiltWorlds in 2022), an 56% year-over-year (YoY) increase in early-stage fundraising
In the fourth quarter alone, BuiltWorlds tracked 125 deals totaling $3.24 billion of funding, depicting massive YoY growth of 119% & 163%, respectively
VC-funded startups are reaching the end of their last round's runway from the easy-money fundraising environment of 2021 and early 2022, and investors are doubling down on due diligence (despite record levels of dry powder), only investing in those innovations that are able to defy mounting economic headwinds
The built environment has been a growing target for entrepreneurial efforts and unicorn-chasing investors with the obvious lapses in sustainability & digital efficiencies as well as an economically agnostic restructuring tailwind supporting the broader sector
With 50%+ of anticipated 2023 GDP growth coming directly from innovation in the US, it doesn’t take a crystal ball to see that the paper-trailing AEC environment is ripe for a technological makeover
With many ConTech startups already reeling back burn rates as capital diminishes, this category will likely be a target for more aggressive M&A activity focused on distressed innovations in 2023 with long-term value-creation narratives remaining
Discussion
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