Canada's Proptech Reset: Tighter Capital, Better Products, Real Adoption
Real estate drives Canada's economy. Add construction, and its footprint gets even bigger. That scale is why proptech-software and hardware for building, buying, renting, and managing property-has momentum here. The sector has matured, but the bar has risen.
Funding is tight, discipline is up
Proptech startups in Canada raised $450 million CAD across 30 disclosed rounds in 2025. That's well off the 2021 peak in deal count and below 2024's total, which was boosted by a single mega-round. Investors are stricter, want traction earlier, and valuations are lean.
"Investors are more selective and want to see more traction earlier," said Stephanie Wood. She added that the market reset is a forcing function: companies that survive are building with product-market fit, cash efficiency, and durable growth in mind. By 2026, the sector looks more stable and mature-growth at all costs is out.
AI moves from pitch decks to production
Most new dollars are flowing to AI-led products. Real estate and construction firms are more open to pilots and partnerships. Mave, an AI assistant for realtors and brokers, says its platform is helping automate back-office tasks so agents can focus on selling.
Mave closed a $5 million CAD seed round to fuel product and North American expansion. Investors cared less about broad narratives and more about active users, engagement, and measurable results. The company reports onboarding 8,500 realtors and dozens of Ontario brokerages, with 70 percent of clients using the platform weekly.
Where capital is landing
- Early-stage (pre-seed + seed) held steady at 64 percent of deals.
- Growth rounds were scarce, with only 10 deals over $10 million.
- Notable raises: Dcbel ($55M), Carbon Upcycling ($24.5M), Augmenta ($14.4M).
More pre-seed teams are showing up with product in market and paid pilots. Meanwhile, seed-stage companies with revenue are often skipping new rounds to prioritize profitability.
Fewer new startups, healthier pace
Canada saw 34 new proptech startups founded in 2025, down slightly from 36 in 2024 and well below 2019-2020 levels. Wood isn't worried. The market was frothy before; the current pace is more sustainable.
Consolidation is the default exit
Exits were muted in 2025, led mostly by mergers of equals and strategic M&A. Expect steady consolidation in 2026 as companies bolt on capabilities and deepen data advantages.
Rentsync has already moved, acquiring Spacelist in December and Urbanation shortly after-its seventh deal to date. These purchases extend data moats and increase product stickiness, a clear signal of where value is concentrating.
AI helps renters and buyers-but watch the risks
Consumers can search, apply, and secure financing online faster than ever. AI is already accelerating that flow. If misused, it can also push up rents, inflate screening errors, or expose personal data. Set governance early: privacy, fairness testing, auditability, and clear human oversight.
Policy tailwinds: Build Canada Homes
The federal push to increase affordable supply could be a boost, especially for construction tech. A new $13-billion Build Canada Homes agency aims to support modern approaches that speed delivery and cut cost. This is where zoning tools, prefab and modular, and field software can step up.
- Zoning and permitting: Landerz
- Prefab and modular: Promise Robotics, Cabn
- Field and workforce management: Bridgit, ConstructionClock
For context on federal housing priorities, see the Government of Canada's plan here.
Operator playbook: What to do next
- Run 90-day pilots with clear KPIs: lead-to-lease conversion, time-to-lease, service request closure time, SLA adherence, and CSAT.
- Integrate where work already happens: PMS, CRM, email, and field tools. Minimize new tabs; maximize automation in existing workflows.
- Demand real usage data from vendors: weekly active users, activation rate, time saved per workflow, and support ticket deflection.
- Set guardrails: PIPEDA-compliant data handling, Canadian data residency where required, role-based access, bias testing for screening and pricing tools, and audit logs.
- Buy vs. build: if it's not a core differentiator, acquire or partner. Use M&A to deepen data and shorten roadmaps.
- Finance for durability: 18-24 months of runway or clear path to breakeven; target fast payback on deployment (sub-12 months is a strong bar in this market).
What VCs want to see now
- Proof of value: measurable time savings, cost reduction, or revenue lift.
- Engagement: weekly active users, seat expansion, and feature adoption.
- Retention: net revenue retention, expansion in existing accounts, and low churn.
- Efficient growth: CAC payback under 12 months and disciplined burn.
Bottom line
Canadian proptech isn't cooling off-it's maturing. Capital is tighter, but better products are shipping, AI is being deployed where it counts, and consolidation is building stronger platforms. Teams that prove value fast, protect data, and partner well will win the next cycle.
If your team needs to skill up on AI for real estate and construction workflows, explore curated courses by job.
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