Billions of dollars in venture capital have been invested in real estate to improve the experience of residents, office tenants and landlords themselves. But where is the money for the really important things? The climate crisis, the lack of housing in the country and other dire problems?
“The biggest problem is that there is no silver bullet,” said Casey Berman, co-founder of Camber Creek Partners, a venture capital firm specializing in proptech technology. “This is not to say that we are going to reduce construction costs by 90 percent to give people the American dream of becoming a homeowner. There is a TON of stepwise change that together create this huge change. ”
In conversation with The real dealHiten Samtani, Berman has broken several of these stepwise changes, including advances in how buildings can measure and track their resilience, which in turn leads to behavioral changes.
He also talked about the rapidly increasing amount of money in real estate technology and how important it is for startups to balance their capital needs with the growth expected by different types of investors. The dramatic failure of construction technology startup Katerra is evidence of a failure to strike a balance, he said.
“You expect super high growth from venture capital,” Berman explained. “With a modular home building company, it’s incredibly difficult to grow 100 percent a year when you have such a capital intensive business. This does not mean that it is not more efficient or uses fewer resources. The challenge we see is to find the right type of capital for the gradual changes that are taking place to make the world a better place to get rid of the terrible problems we have. “
See the full interview above. – TRD staff
(To learn more about REInterview, his series of in-depth conversations with real estate leaders and newsmakers, click here. Https://therealdeal.com/tag/the-reinterview/)