In 2021, Proptech Collective released the first-ever Proptech in Canada report.
The volunteer-run collective of real estate professionals, city builders, and entrepreneurs believes “technological innovation can change the built world for the better.”
Now the organization has released its second annual report with a range of updates from the previous edition. The big number is that 150 startups were added to the database of property technology companies in Canada, highlighting tremendous national growth.
“Our perspective is that Canada continues to be a very strategic location for proptech innovation on an international scale,” Proptech Collective cofounder and report coauthor Courtney Cooper said. “Proptech startups benefit from the large list of globally recognized real estate owners and operators headquartered across the country, supportive policies and programs for entrepreneurs, and a deep talent pool.”
The report analyzed well over 400 proptech startups in Canada across the sectors of commercial real estate, residential real estate, and construction tech. It concluded that Canada has five proptech hubs—Toronto, Vancouver, Montreal, Calgary, and Kitchener-Waterloo—where more than three-quarters of the companies reside. Similar to financial technology more broadly, Toronto ranks top here, where over 40% of all proptech startups in Canada are.
“After a pandemic-induced pullback in activity, renewed interest has returned to this asset class,” noted Frank Magliocco of PwC, a sponsor of the report, citing “the accelerated adoption of technology in real estate and the keen desire to focus on solving problems through innovation.”
With real estate modernization relatively recent relative to some other industries, Canada’s proptech sector is fairly young. According to the report, half of the startups were founded within the last five years, and more than two-thirds are considered “early-stage,” having not raising capital beyond angel, pre-seed, or seed funding.
The funding is there, though, both at the seed level and beyond. Big 2021 deals included eight- and nine-figure sums while dozens of fledglings secured early-stage capital, data from the report affirms.
“Canada continues to be a PropTech hub with a thriving technology ecosystem,” Magliocco said.