An analyst from a realty asset firm believes real estate tech startups may have problems securing funding prior to a U.S. election.
Real Estate Weekly reports that U.S. Founder and CEO of leasing and asset management platform VTS, Nick Romito, said funding for real estate technology startups have dried up as investors start to get skittish about the election.
“We see a lot of companies, who did get funding 18 months ago to three years ago, who likely won’t be able to get funding again because the valuations just aren’t there,” he said during the recent MIPIM Proptech Summit.
“Especially with the pending election, there’s a lot of uncertainty about how it’s going to affect the market. Things like that trickle down to venture capital.”
Romito’s comments, however, are in opposition with the July data from research company CBInsights.
According to the firm, real estate tech startups raised more than $1.8 billion in the first half of 2016. The total figure, which is spread out between more than 100 deals, represents an 85 percent increase from the same time last year.