Proptech Hub CRETI Launches Curated Venture Capital Platform

The Center for Real Estate Technology & Innovation (CRETI) announced Monday that it has launched Venture Connect, what it describes as a curated investment platform to match proptech startups with angel through Series A investors.

The platform will connect the startups to more than 200 venture capital investors based on their investment profile and thesis, said Ashkán Zandieh, managing director of the Dallas-based proptech membership organization. Investors on the platform include proptech venture capital firms Alpaca VC, Era Ventures, Fifth Wall, JLL Spark, Navitas Capital and Nuveen.

“Our mission has always been the financial health and wealth of the proptech ecosystem,” said Zandieh. “One of the areas where we try to help is in aiding entrepreneurs and founders to succeed. And what keeps coming up is raising capital. We want to connect them with the right capital.

“What’s happening in our industry — and this is not unique to proptech, it is actually rampant in tech — is that startups are reaching out to a number of investors blindly and not getting a response. Or they’re reaching out to the wrong investor. Ultimately, CRETI is going to demystify raising capital in proptech.”

A member-supported research and education organization, CRETI does not invest in or offer advice on the investment of funds or technology companies, but wants to make the funding process easier for entrepreneurs, Zandieh said. “We are not a venture capital company and we are never going to be a VC. We’re an unbiased third party. Everything we do is for the benefit of founders and entrepreneurs.”

The organization plans to help founders by matching startups and investors through a no-cost form that makes the search easier and more efficient for both parties.

“The startup fills out a form that basically asks questions an investor would ask,” said Zandieh. “And then we match their information with investors who meet their investment criteria and who align with the investor’s investment thesis. Introductions will be made, and then it’s a one-to-one relationship.”

While many platforms already claim to offer a service similar to CRETI’s Venture Connect, entrepreneurs often find their submissions going into a black box with no response, he said.

“It’s really disheartening as a founder and entrepreneur, because you’re hoping to stay focused on operating your business, and the last thing you need to be thinking about is, ‘Now I have to stop operating my business to focus on capital raising.’ In today’s market, that’s a six- to 12- or even a 24-month endeavor. We’re trying to have founders focus more on operating their business and less on raising capital by providing efficiency for them.”

Should a startup fail to be matched, CRETI also runs free monthly venture capital sessions to inform and educate proptech companies on how to raise capital, with major real estate VC firms such as JLL Spark, Navitas Capital and Nuveen leading the sessions, said Zandieh.

A number of proptech VCs see the value of Venture Connect.

“If you ask a proptech founder what they most need help with today, introductions to qualified investors with capital would be No. 1, 2 and 3 on their list,” said Daniel Fetner, general partner at Alpaca VC. “We believe the CRETI platform will be a game-changer for the industry, helping founders succeed in bringing new ideas to market faster and more efficiently capitalized.”

Similarly, Navitas Capital partner Jenny Song said, “The proptech industry is full of innovators who just need the right financial backing to make a real impact. The work CRETI is doing to break down barriers and demystify capital-raising for startup founders, especially first-time founders of early companies, is incredible.”

Philip Russo can be reached at prusso@commercialobserver.com.