Risk capital rides the recovery

"Proptech" (which deals largely with the management and buying and selling of property) and "contech" (which covers construction and construction management technologies) have seen big surges in investment over the last decade. According to an Oxford University study of proptech's evolution since the 2000s, venture investment in proptech has doubled every few years for the last decade, with some $20 billion placed in 2018 alone. Much of the venture money is following a tidal wave of institution capital flowing into real estate during the 2010s, which doubled from $400 billion to $800 billion globally. Venture investors point to the low level of digitization in this massive class of assets as a key draw.

There's little sign of a letup. Demand is diversifying and expanding as well, as building owners and tenants scramble to adapt to post-pandemic norms. This points towards a massive ongoing infusion of private risk capital into urban tech, responding to the uncertainty and volatility of space needs in cities as they recover from the pandemic.