There often seems to be a wide gap between the venture capital and real estate industries, but as technology booms in every direction, more and more startups have emerged with real estate-focused services to bridge the gap. According to the PitchBook Platform, 50 companies in the real estate services space have garnered VC backing, including the commercial real estate search engine 42Floors, which scooped up $12.3 million this week (story featured in today’s newsletter). Last year was a particularly hot year for this sector, as deal count jumped from 10 deals in 2011 to 19 deals in 2012. There was also significant growth for early-stage investments which leapt from three deals in 2010 to seven in 2011, and then again to 11 in 2012. Despite the increased deal count, however, yearly median deal size has taken a fairly consistent dip—thanks in part to the increasing amount of early-stage deals—since a high point in 2008, which saw a median of $5.5 million per deal. The ensuing years saw median deal sizes of $2.1 million, $1.5 million and $1.3 million, with a slight increase last year at $1.7 million.
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