Deal comes after the venture capital firm closed its $325M Fund IV in 2022.
Camber Creek, a real estate tech venture capital firm, recently announced it closed its Opportunity Fund I at more than $100 million, exceeding its initial target. The new fund follows Camber Creek’s recent $325 million Fund IV close in 2022. Opportunity Fund I, which comprises current and new institutional and strategic investors, allows the firm to hold its pro rata on earlier investments and continue to invest in opportunities unique to the current market environment.
Camber Creek said it currently has more than 300 strategic limited partners that represent leading global real estate owners, operators, and service providers. The firm, which is focused on driving innovation in the real estate industry, invests in leading proptech companies, including Arcadia, Bilt Rewards, Curbio, Flex, HappyCo, Measurbl, Notarize, and VTS.
“The current market environment is providing some exciting investment opportunities at attractive valuations,” said Camber Creek partner Jake Fingert. “Our exceptional brand with founders, strong track record in the proptech space, focus on adding value, and deep pipeline put us in a position to capitalize for our investors on today’s market.”
Camber Creek has had several successful exits for its limited partners over the past year, including selling TaskEasy to WorkWave and Building Engines to JLL.
“We are tremendously grateful for the continued support from our current and new limited partners,” said Jeffrey Berman, a Partner at Camber Creek. “Our 300-plus strategic limited partners give us an incredible market advantage. The capital from Fund IV and our Opportunity Fund puts us in a strong position to identify and invest in leading companies at a time when technology adoption is accelerating in our industry.”
“From the beginning, Camber Creek worked to build the relationship, opening their network to us before they invested,” Kiran Bhatraju, founder and CEO of portfolio company Arcadia, said. “As we worked to expand our reach with real estate owners, we knew they would be great partners. They know real estate intimately and can strategically make connections between their portfolio companies and the industry.”
Berman would not predict how much money would be invested in proptech this year, Commercial Observer reports. He did mention on what cap tables may look like for the businesses that receive funding in 2023, however.
“If you look especially at 2021, which I think everyone can agree was an outlier year, the cap tables weren’t all VCs. It wasn’t all general VCs,” he said. “You had corporates, family offices, angel investors, and, of course, the 800-pound gorilla, the alternative investment managers like Tiger [Global Management] that were heavily leaning into the space. I think you’ll see less of that. I think you’ll see more of the groups that have made this their day jobs, for lack of a better term. You’re going to see the subject matter experts continuing to lean in.
“I would certainly say that this is as exciting a time as any,” Berman added. “We keep on getting more excited about the space. I think the amount of money that goes in, and who is writing those checks, might shift somewhat. It will be really interesting to see at the end of 2023 how that shakes out.”