Proptech innovation gets a boost with Era Ventures’ $88 million fund

• Era Ventures launches its first $88 million real estate fund
• The fund targets proptech innovations in SaaS, AI, marketplaces, embedded fintech, and hardtech
• Previous investments include a digital handyman service, a cross-border construction marketplace, and an AI-enabled platform for autonomous buildings
• Largest woman-led fund to ever raise in the sector

Driving the news: Era Ventures has unveiled its first $88 million real estate fund, targeting companies at various stages of innovation in the sector. Founded by Clelia Warburg Peters, the firm marks a milestone as the first woman to raise an initial fund of this magnitude in real estate.

Why it matters: The real estate industry is ripe for technological disruption. Era Ventures aims to transform the sector by investing in proptech innovations in SaaS, AI, marketplaces, embedded fintech, and hardtech ventures.

Key investments: Buildings account for about 30% of global energy consumption, underscoring the need for innovative solutions. Era Ventures focuses on transformational change rather than merely digitizing old processes. The fund has already backed several startups:

• A digital handyman subscription service
• A cross-border construction-materials marketplace
• An online platform for managing and building custom homes
• A UK-based next-gen real estate listing service
• An embedded insurance platform for construction
• A single-family rental company
• An embedded financial platform for residential transactions
• An AI-enabled platform for autonomous buildings

What they're saying: Specialist venture funds have outperformed in complex sectors like financial services and healthcare. Era Ventures aims to bring similar disruption to real estate by leveraging institutional backing, venture experience, and real estate expertise.

• The fund has attracted strong backing from entities such as ICG Advisors, New York Presbyterian Hospital, The Ashforth Company, BentallGreenOak, Continental General Insurance Company, Pelwood Holdings, First American, Bain Capital Ventures, and Fenwick & West LLP.