The seed stage for proptech never really cooled off — there's always another wedge into leasing, maintenance, or insurance for a new founding team to pitch. Series B is a different story. Several funds that were active two years ago have quietly stopped taking new proptech meetings at that stage entirely.
The bar moved
What changed isn't enthusiasm for the sector, it's the diligence. Growth-stage investors are now underwriting gross margin and payback period with the same rigor they'd apply to a vertical SaaS company, and a lot of proptech businesses — particularly ones with a services or hardware component — don't clear that bar as cleanly as a pure software company would.
What's still getting funded
Capital is still moving toward companies that can show retention and expansion revenue inside existing property management stacks, rather than businesses asking landlords to rip out an incumbent workflow. The lesson for founders is less about the size of the market and more about how quickly the unit economics can be shown clearly on a single slide.