Era Ventures, a venture capital firm focused on transforming the built environment, has launched its inaugural $88 million fund. Led by industry veteran Clelia Warburg Peters, the fund will target business model innovations that reshape the real estate and construction industries, deploying capital across various stages and focusing on key categories such as SaaS, AI, embedded fintech, marketplaces, and hardtech.

The firm’s approach is centered around identifying and investing in transformative platforms that not only optimize physical assets but also disrupt the technological landscape in a sector that has traditionally lagged behind in innovation. Era Ventures will back startups offering solutions that range from improving existing processes to introducing groundbreaking technologies that address the inefficiencies in real estate, construction, and property management.

Support for Era Ventures comes from an impressive array of institutional investors, including ICG Advisors, New York Presbyterian Hospital, BentallGreenOak (BGO), and Bain Capital Ventures. The fund has attracted significant attention as one of the few venture funds of this size launched in 2023, a year that saw venture capital activity slow across many sectors. Notably, it is the first time a woman has raised an initial fund of this magnitude in the PropTech space.

Clelia Warburg Peters, the founder and managing partner of Era Ventures, has long been a leader in PropTech, first as a co-founder of MetaProp and later as a venture partner at Bain Capital Ventures. She brings deep industry expertise to the fund, which aims to catalyze positive change by leveraging specialist insights while maintaining the creativity of a generalist investment approach. “We are focused on driving transformational change in the physical world, combining rigor, care, and a deep understanding of real estate to support the best ideas,” said Peters.

The timing of Era Ventures’ launch is crucial. The real estate industry, valued at nearly $380 trillion globally, has been resistant to technological disruption, despite mounting pressure for innovation. Construction productivity has barely increased over the past few decades, and buildings continue to consume around 30% of global energy. Era Ventures is stepping in to address these challenges head-on by investing in startups that offer innovative solutions in this critical sector.

Partner Raja Ghawi emphasized that the firm is looking beyond incremental improvements in real estate. “We’re not just looking to digitize old processes in real estate and construction. We believe the next generation of founders will bring more transformational, efficient, and profitable businesses to market,” he said.

Era Ventures has already begun building a portfolio of high-conviction startups across several categories:

Marketplaces and Tech-Enabled Services:

• Honey Homes: A subscription service providing on-demand handyman services.
• Latii: A marketplace for cross-border construction materials.
• Welcome Homes: An online platform for managing and building custom homes.
• Ostrich: A next-gen real estate listing service based in the UK.

Fintech:

• Shepherd: An embedded insurance platform tailored for the construction industry.
• Truehold: A single-family rental company combining home sales and rental leases.
• Homeward: An embedded financial platform designed to facilitate real estate transactions.

Hardtech:

• PassiveLogic: An AI-enabled platform that powers autonomous buildings.
• ViaBot: A Robotics-as-a-Service solution for facility management.

Vertical AI and SaaS:

• Indigo: An AI-driven platform to streamline residential real estate transactions.

Portfolio companies, such as Honey Homes, have already praised the firm for its hands-on approach and ability to provide valuable strategic insights. Vishwas Prabhakara, CEO of Honey Homes, noted, “Clelia and Raja have a deep and considered viewpoint on what makes companies great. They’ve been instrumental in helping us better understand our customers and refine our pricing strategy.”

With its first fund, Era Ventures aims to foster a new era of innovation in the built environment, combining sector expertise with venture capital rigor to drive fundamental change in a traditionally slow-moving industry. By backing innovative companies at the intersection of technology and real estate, the firm is positioned to have a significant impact on both the sector and the broader economy.

The $88 million fund will allow Era Ventures to support its portfolio companies through their growth stages, establishing partnerships and scaling their businesses to meet the growing demand for technological solutions in real estate and construction.