2025 PropTech Year in Review (Houlihan Lokey)
SaveSummary
- The U.S. PropTech market saw $5.8 billion in growth equity and debt financing and 109 M&A transactions in 2025, a ~33% increase in financings from 2024's five-year low.p.4
- Financing covered 190+ investments, with 55+ rounds of more than $20 million, 26 of which were more than $50 million.p.5
- M&A activity is up 20% compared to 2024, with 109 announced transactions in 2025.p.5
- The 2H 2025 average deal size increased by 12% versus 2H 2024, rising to $40.3 million.p.6
- 1H 2025 PropTech equity and debt investment was ~$2.4 billion, while 2H 2025 reached ~$3.4 billion, a 44% increase YoY.p.6
- Strategic acquirers drove ~80% of overall activity in PropTech M&A.p.8
Key insights
- Market volatility weighed on PropTech activity in 1H 2025, but the market began to stabilize in 2H 2025.p.4
- Key tech trends include rapid adoption of AI tools, increased demand for integrated payments solutions and greater use of predictive analytics.p.4
- Global technology M&A deal volume was up 11% YoY in 2025.p.5
- Software public equities have faced significant pressure into 2026 YTD from fears of AI displacing traditional SaaS vendors.p.5
- Financial sponsors are expected to deploy capital but remain disciplined, focusing on growth, profitability and retention.p.8
Topics and entities
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