Founders From Real Estate
We look for Teams that have experienced a problem first-hand and have the passion and expertise to navigate scaling a tech company in the real estate sector.
Proptech 3.0 Business Models
According to the University of Oxford, we are at an inflection point in Proptech. As the release of ChatGPT-4 and other LLMs have shown us, new business models that have leading-edge tech will begin disrupting industries - real estate is no different. We look for novel applications of AI/ML, blockchain, additive manufacturing, AR/VR/XR, and IoT technologies with the pairing of SaaS, PaaS, and marketplace business models targeting difficult pain points within the built world.
Hamilton’s Unique Model
We are combining the network investing model with deep sector experience, a builder’s mentality, and an early-stage focus. Our belief in a shared partnership with our portfolio companies allows us to engage on a custom, as-needed basis (Board seat, executive coaching, or other). We believe that the combined wisdom and networks of our Founders and Investors creates a sum greater than its parts. This mindset is crucial when it comes to adding value to scaling startups.
Investors from Real Estate
We have assembled a top-tier bench of investors with generations of leadership experience in every sector of real estate imaginable. Our investors have built and led large companies in real estate and are keenly aware of the potential for disruption in the sector. Our investors want to help new companies scale.
Where We Invest Within Proptech
It is widely known that the construction industry is dead-last in efficiency gains over the past half-century when compared to other industries. One of our favorite blogs comments on this often. While the industry has made big strides over the past decade, we believe that new technologies still have a significant role to play over the next decade to bring construction into the 21st century.
Some of the largest public real estate companies are data companies (e.g. CoreLogic, CoStar, and ICE). While the data space is competitive, we believe the potential for big companies in this space is still significant. We are looking for the next generation of real estate data companies building proprietary data sets, leveraging blockchain technology, and providing real-time analytics to problems that matter.
Climate & Clean Technology
We’ve all heard the stat by now - buildings account for nearly 40% of global carbon emissions (~20% is embedded in the building materials and ~20% is from ongoing building operations). Reducing these emissions is imperative for humanity. If we are going to get to a “Net-zero” built world by 2050, proptech investors will have to join with other climate investors to build hardware and software that scales quickly. We believe this category has incredible tailwinds and that we are still only in the first inning.
CRE & Resi Process Automation
Even today, there are still an almost unbelievable amount of analog processes occurring within the real estate industry that have been only marginally automated, if at all. This is especially true in asset classes other than Multifamily and Office. We are looking to invest in API-first businesses leveraging AI & ML to disrupt yet to be automated processes in real estate.
The price of the average home sold in the US has more than doubled in the past decade from $260K to $540K. Similarly rent increases have seen an increase since 2010 that looks more exponential than linear. Whether you believe that the U.S. is short 4M homes, or 400K, there is a well documented problem of housing costs outstripping household income. We are constantly looking to invest in Founders that have built technology to address this issue.
Real estate is, at the core, a finance and payments business. However, it is estimated that trillions of dollars in real estate payments are still facilitated by ACH and paper checks on an annual basis. Whether it's increasing credit facilities to small builders, or disrupting legacy lending platforms, we think the real estate world will catch up with the rest of the Fintech world over the next decade.
U.S.-based Seed and Series A companies are our sweet spot. However, we will consider later stage opportunities on an ad hoc basis. We like to work alongside a company right as they are beginning to see a semblance of product market fit. We generally don’t invest in pre-revenue companies.
Check Size &
We write initial checks of $250K-$750K, depending on the stage of the business and the size of the round. We do not have specific ownership requirements and we have the capacity to make follow-on investments. Hamilton will lead rounds opportunistically, but our investment is not predicated on doing so.
Before we make an investment we always ensure that there is a strong strategic fit within our investor base with regards to revenue generation and/or capital formation.
We target SaaS, PaaS, and marketplace business models that are ready to scale quickly with limited marginal costs per customer/user. We understand that real estate is typically a longer sales cycle than other software markets, but as investors we always have scale and exit potential in mind when we invest.
While we do not require a Board seat, we want to be in long-term capital relationships where honesty, trust, and collective wisdom are valued above hubris and short-term thinking. Many early-stage investment relationships last longer than the average marriage. We want to make sure we are in alignment before the funds are wired.
As a rule, we do not invest in the following: Pre-revenue companies; funds (real assets, debt/mezzanine, fund of funds, etc.); hardware or services companies; B2C only business models; non-U.S. based companies; limited partnerships, S-Corps, or other unique legal structures.