Agya Insights: Edition 102
The Time For Sustainability and Diversity
Hello from a relatively warm day in New York. In this edition, we talk about sustainability and diversity in real estate tech, a report on climate change, a new book on venture, and recent financings in our part of the world.
Importantly, we thank you for all the constructive feedback and words of encouragement we have been receiving over the past few weeks - one such suggestion, which we promptly decided to incorporate in our newsletter, is to highlight key job listings from our portfolio. If you have anyone in your network who might be a fit, send them our way!
Thank you and on behalf of the team,
💡 What’s Happening
Climate Change, Sustainability & Real Estate: This Time is Different? Real estate and construction account for 50% of the world’s energy consumption, 40% of the world’s raw materials and 40% of global greenhouse emissions.
In what has thus far been largely a branding exercise for the real estate industry, the call for sustainable buildings from regulators, employees, and tenants is getting more shrill.
Critically, with real estate investors and asset managers making net zero commitments, underwriting climate change, and linking cost of capital to how sustainable an asset is, experts believe a turning point for the industry is on the horizon.
There’s quite a lot at stake: The International Renewable Energy Agency believes that up to $7.5 Tn worth of real estate could be ‘stranded’ and experience material write downs in economic value, if no action is taken.
Diversity, in the Backburner, no more: Diversity continues to be abysmal in the venture capital world, both when it comes to investment decision makers at VC funds, and the entrepreneurs they back.
We are still in the early innings for real estate tech and construction tech, and the time to start thinking about it, and actively solving for it, is now.
On our side, Nobu and I consistently benchmark our portfolio investments and team building efforts, accounting for diversity. We are open and would appreciate any feedback on how we can do this better, because there are few data points in the industry to follow today.
📚 What We’re Reading
This recent report from McKinsey makes the case that it would take $9.2 Tn of annual investment to support the net zero transition. If we get there, real estate will look very different.
Alan Patricof is a venture capital legend. Having spent more than 50+ years in the industry, he continues to invest in and mentor early stage technology companies. His memoir is available for pre-order here.
Brad Feld’s The Entrepreneur’s Weekly Nietzche, where Nietzche meets Thich Naht Hanh meets Silicon Valley.
🤝 Who’s Hiring
💸 Select Financings in the Built World
ICON Technology | iconbuild.com
$185 mn Series B extension
3D printed home builder, leveraging robots and sustainable materials.
Homebound | homebound.com
$75 mn Series C
Tech-enabled full stack home builder.
Funnel | funnelleasing.com
$36 mn Series B
Marketing and leasing management solution for residential landlords and brokers.
Facilio | facilio.com
$35 mn Series B
Facility management software that deploys IoT sensors and machine learning to drive operational efficiency in buildings.
Raydiant | raydiant.com
$30 mn Series B
AI-powered digital signage for brick & mortar stores.
Northspyre | northspyre.com
$25 mn Series B
Data-driven insights and intelligence platform for real estate developers.
Nomad | nomadlease.com
$20 mn Series A
A guaranteed rent marketplace for small and medium sized landlords.
Ember | emberhome.com
$17.4 mn first raise
Vacation home co-ownership platform.
For the complete list of real estate tech and construction tech investment announcements from Feb 14 - 28, click here!
h/t to Aaron and Hovik for pulling in late nights (again) and aggregating multiple sources for real estate tech financings.