Indeed, investment in startups has accelerated in a number of key areas which address building technologies mitigating the spread of coronavirus throughout commercial real estate. The research demonstrates the critical contribution that startups are making to the introduction of innovation in the Smart Buildings & PropTech space.

Memoori's analysis of venture capital and private equity funding has recorded the highest level of investment in startups over the last 4 years. Total capital invested in the global smart building space since 2012 amounts to $18.8 billion.

136 startups have been acquired in the last three years, which, according to the research, is the highest level of consolidation activity in the last nine years accounting for 72% of the total number of acquisitions over this period. Strategic buyers across the smart buildings landscape have continued their acquisitions strategy undeterred.

In the crowded marketplace of smart building startups, new entrants will need to differentiate themselves, either through their business model, partnerships or innovative technologies, in order to succeed. The report analyses the future for startups, recent and forthcoming IPOs and SPACs, disappearing and inactive startups as well as a summary of closed startups.

For the purposes of the research, startups are defined by Memoori as ‘private companies formed no earlier than 2011 that are focused on the commercial and industrial buildings market, that are not a subsidiary or an acquisition of a larger company and that are often financed by venture capital or private equity funding.’