If you missed it, the second edition of the Real Estech barometer was released this week. An opportunity to take a look at the French PropTech sector.
What are the keynote figures from the Real Etech barometer?
- 420 active French startups were registered, 70% of them between 2015 and 2017.
- In 2018, only 40 PropTech startups were created in France, compared to around 100 in 2017.
- 204 million euros were raised in 2018, compared with 177 the previous year.
- 62 rounds were recorded, with an average ticket of 3.2 million euros.
- + 220% of series A.
- 5 startups have been acquired by French groups.
What are the lessons we can take from the Real Estech barometers?
According to Robin Rivaton, CEO of Real Estech, “The creation of new valuable little concepts is being hampered, especially in the construction sector, because it is a difficult sector to get into. On the other hand, the simplest areas to tackle are now saturated.”
The other finding is disappointing: we are late. As Robin Rivaton points out, “The growth of startups in the sector continues, but we are still lagging well behind others, such as food technology. However construction accounts for 15% of national GDP and our entrepreneurs raise half as much as fintech.”
There’s still a long road ahead!
Still a long way to go for the French PropTech sector!
These figures should be looked at alongside those from the French Tech surveys published for January. In fact, out of the €338.5 million raised in January by the whole sector, only 2 million were raised by PropTech (real estate, construction, smart home).
France, and Europe as a whole, is significantly behind compared with markets such as the United States where there are about 15 real estate funds. No startup on our side of the Atlantic has reached the $1 billion raised level. One explanation for Robin Rivaton is that “The construction sector is less consolidated in the United States and that leaves more room for start-ups to grow.”