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Proptech startup DoorLoop has scored $100M in its latest round of funding as investment in the sector skyrocketed in October.
DoorLoop plans to use the cash to bolster its property management software services, including automated rent collection, accounting services and maintenance requests, it announced Tuesday.
The Miami Beach-based company also said it wants to grow its leadership team and get more aggressive with hiring and investments across its U.S. and Israeli offices. DoorLoop was founded in 2019 and has 150 employees. This latest round brings it to $130M raised.
The Series B was led by JMI Equity, an investor in software companies.
Money has been pouring into the proptech sector since the Federal Reserve dropped interest rates, a welcome change for players in the struggling sector.
More than $1B was invested in proptech during the week ending Oct. 18, compared to $1.8B raised overall in the third quarter.
Before September, funding had been on a downward trajectory since 2022 when interest rates began to climb. In 2023, funding fell 42% year-over-year, and it fell another 14% to $4.4B during the first half of 2024.
VC firms that were sitting on dry powder after pandemic-induced turbulence are poised to invest more aggressively now that rates have been cut.
Investors active in the proptech sector told Bisnow in August they were anticipating the rate cut and were making moves accordingly. David Eisenberg, founder of proptech venture capital firm Zigg Capital, said his company was going to be on the offensive by the end of 2024 if rates fell, as opposed to moving defensively last year.
The week interest rates fell, $97M was invested in the asset class across 11 companies. The first full week after the 50-basis-point drop, $227M was invested across 10 companies, according to data from the Center for Real Estate Technology & Innovation, and it shot up to $1B the following week.
AI-driven property management services like DoorLoop raised the most money in Q3. Proptech firms seeking early-stage funding will have all eyes on them, according to CRETI, especially startups focused on artificial intelligence solutions for tenant management, optimized assets and labor shortages.
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