Moderne Ventures Announces its 2022 Passport Class

Moderne Ventures accepts nine companies into its Passport Program addressing the biggest challenges facing real estate, finance, insurance, ESG and home services.

CHICAGO, April 7, 2022 —Moderne Ventures, a venture fund focused on real estate, finance, insurance, technologies and home services, announced nine new companies accepted into its 2022 Passport Program, an intensive, six-month industry immersion program providing its participants education, exposure, insight, and relationships to drive customer growth.

The 2022 Passport Companies are helping Moderne’s multi-trillion dollar industries provide greater financial health and access, sustainability, and automation. This Class has raised over $52M in funding with collective valuations north of $268M. The companies are:

·       Acorn Finance (Acornfinance.com) – Sacramento, CA: A competitive lending marketplace for consumers to obtain immediate prequalified offers up to $100k, including home improvement projects, exercise equipment, technological upgrades, and other major purchases.

·       Aerwave (Aerwave.io) – Dallas, TX: Aerwave provides rental communities the instant-on, gigabit plus Internet amenity residents expect and enables the smart community through the Digital Foundation.™

·       Avvir (Avvir.io) – New York City, New York: Harness the power of reality capture data by automating progress & earned value tracking, quality control and as-built creation to build a true system of record.

·       Livv.ai (Livv.ai) – Tel Aviv, Israel: A large scale AI lead-profiling platform that dramatically increases conversions by identifying user intent to buy or sell property and the optimal moment for service providers to engage.

·       Move Easy (Moveeasy.com) – Columbus, OH: Moving & home management simplified. Move Easy provides turnkey living for homeowners and the ability for real estate professionals and home service partners to stay connected to their clients.

·       Occuspace (Occuspace.io) – San Diego, CA:  Leverage the power of occupancy data to more efficiently plan and improve space utilization, real estate decisions, and enhance the end-user experience.

·       RentCheck (Getrentcheck.com) – New Orleans, Louisiana: Technology platform that brings all rental inspections into one place, increasing efficiency and reducing cost.

·       Tumble (Tumble.to) – San Francisco, CA: “Smart laundry” - a modern laundry experience.

·       Zebel (Zebel.io) – Walnut Creek, CA: Data analytics platform for multifamily real estate developers and general contractors to run feasibility analysis during early design stages.

“The Passport Program curates the most innovative solutions addressing our industries. We help companies understand complexities, optimize their products and services, and connect them to partners who can benefit most from them,” said Constance Freedman, Moderne Ventures’ Founder and Managing Partner.

 

About Moderne Ventures

Moderne Ventures is a strategic venture capital firm with over $350M AUM.  Moderne invests in technology companies in and around the multi-trillion-dollar industries of real estate, finance, insurance, ESG, and home services. It has both a Fund and an Industry Immersion Program, the Moderne Passport, designed to foster innovation, partnership and growth between industry partners and new emerging technology companies.

                

Moderne has built an extraordinary network of over 700 executives and corporations within its core industries and evaluates over 4,500 emerging tech companies each year. Moderne most often looks outside its industries to find technologies that can be applicable within them, and it has invested in over 100 companies across its funds and built a stellar track record investing in companies like DocuSignPorchHippo, Homesnap Caribou, Xeal and ICON

 

How an 11-Foot-Tall 3-D Printer Is Helping to Create a Community

By Debra Kamin, September 29, 2021

https://www.nytimes.com/2021/09/28/business/3D-printing-homes.html?referringSource=articleShare

Pedro García Hernández, 48, is a carpenter in the southeastern Mexican state of Tabasco, a rainforest-shrouded region of the country where about half of the residents live below the poverty line.

He ekes out a living making about 2,500 pesos ($125.17) a month from a tiny workspace inside the home he shares with his wife, Patrona, and their daughter, Yareli. The home has dirt floors, and during Tabasco’s long rainy season, it’s prone to flooding. Dust from his construction projects coats nearly everything in the home, clinging to the bedroom walls, the pump toilet and the counters of his makeshift kitchen.

But that will soon change. In a matter of months, Mr. Hernández and his family are moving to a new home on the outskirts of Nacajuca, Mexico: a sleek, 500-square-foot building with two bedrooms, a finished kitchen and bath, and indoor plumbing. What’s most unusual about the home is that it was made with an 11-foot-tall three-dimensional printer.

A manufacturing process that builds objects layer by layer from a digital file, 3-D printing is set for explosive growth. After a pandemic-related boom from printing objects like test swabs, protective gear and respirator parts, the 3-D printing market is forecast to be worth $55.8 billion by 2027, according to Smithers, a technology consulting firm.

Nearly any object can be printed in 3-D; in construction, it uses concrete, foam and polymers to produce full-scale buildings. The real estate industry is warming to the trend: The construction firm SQ4D listed a 3-D printed house in Riverhead, N.Y., this year for $299,000. It was billed as the first 3-D printed home for sale in the United States, but it was predated by similar projects in France, Germany and the Netherlands.

And now, the era of the 3-D printed community has arrived. Mr. Hernández’s home is one of 500 being built by New Story, a San Francisco nonprofit organization focused on providing housing solutions to communities in extreme poverty, in partnership with Échale, a social housing production company in Mexico, and Icon, a construction technology company in Austin, Texas.

When New Story broke ground on the village in 2019, it was called the world’s first community of 3-D printed homes. Two years and a pandemic later, 200 homes are either under construction or have been completed, 10 of which were printed on site by Icon’s Vulcan II printer. Plans for roads, a soccer field, a school, a market and a library are in the works.


Single-family homes are a good testing ground for the durability of 3-D printed construction because they are small and offer a repetitive design process without much height, said Henry D’Esposito, who leads construction research at JLL, a commercial real estate firm. They can also be constructed to tolerate natural disasters: Nacajuca sits in a seismic zone, and the homes there have already withstood a magnitude 7.4 earthquake.

The technology is promising, but some investors remain wary, and they’re watching the emergence of 3-D housing clusters closely.

In March, Palari Homes and the construction company Mighty Buildings announced a $15 million planned community of more than a dozen 3-D printed homes in Rancho Mirage, Calif. The community has a waiting list of more than 1,000.

The same month, Icon announced it had teamed up with the developer 3Strands and DEN Property Group on four 3-D printed homes in Austin, priced at $450,000 to $795,000. Icon has also printed homes in the Community First Village in Austin, a project of the nonprofit organization Mobile Loaves & Fishes that provides permanent housing to homeless men and women.

The 3-D printing market grew 21 percent last year, and Hubs, a manufacturing platform, projects that it will double in size over the next five years.

“It really is a very effective and efficient way to build a small segment of properties, but it’s not something that applies across the broader commercial real estate ecosystem,” Mr. D’Esposito said. “We don’t know exactly how these buildings will perform over decades or what the long-term value retention will be for them. So if you’re talking to an investor or lender, that’s a big yellow flag.”

In Nacajuca, building a home with Icon’s Vulcan II printer looks much like a massive soft-serve ice cream cone: Layers of lavacrete, the company’s proprietary concrete mix, are poured one after another in long swirls. The printer is controlled by a tablet or smartphone, requires as few as three workers and can complete a home in less than 24 hours.

“We know that being able to build more quickly, without sacrificing quality, is something that we have to make huge leaps on if we’re going to even make a dent on the issue of housing in our lifetime,” said Brett Hagler, New Story’s chief executive and one of four founders.

The organization was started in 2015, shortly after Mr. Hagler took a trip to Haiti and saw families still living in tents years after the 2010 earthquake there. Across the globe, 1.6 billion people live with inadequate housing, according to Habitat for Humanity.

“We’re really looking at the biggest opportunities to have both impact and efficiency gains,” said Alexandria Lafci, one of the New Story founders. “There is a very significant gain in speed that you get with 3-D printing, without sacrificing quality.”

Speed is only one factor in bringing a village to completion — New Story has teamed up with local officials in Tabasco to bring sewage services, electricity and water to the community.

Mr. Hernández, who has plans to expand his construction business to a larger space in his new home, said he was not focused on a move-in date. He cares about the long-term impact the home will have for his daughter, who is studying to become a nurse.

“When we receive the house, my daughter will be able to rely on it,” he said. “She won’t have to worry anymore.”

Échale, which has been operating in Mexico for 24 years, helped New Story select residents for the new homes based on need. It decided to sign the titles of each home not to a whole family but to the woman of the house.

“It’s to protect the family,” said Francesco Piazzesi, Échale’s chief executive. “A man will sell a house if they need to. A woman will do whatever she needs to do to save the house for her children and her family.”

Échale hires local workers to build their own communities, so plopping a 3-D printer from an American tech company into the heart of a rural village was a shift.

“If you came to Nacajuca when the 3-D printer was there, you would see machinery that looked like a RoboCop movie,” Mr. Piazzesi said. “It’s creating opportunities for the people because something gets into the community and it lasts.”

Icon has delivered more than two dozen 3-D-printed homes across the United States and Mexico. Its coming projects run the gamut from social housing to disaster relief housing to market-rate real estate. A project is also in the works with NASA to develop space-based construction systems that it hopes will eventually serve as habitats on both the moon and Mars.

When Icon was founded, its biggest hurdle was convincing skeptics, said Jason Ballard, one of Icon’s founders and its chief executive.

“I had builders and developers explaining to me how it’s not possible to get concrete to do that, even as I walked them up to our 3-D printed house,” he said. “Now our biggest challenge is we’ve just got to make more printers.”

Startup Aims to Help Landlords Reward Reliable Tenants

WSJ, By Yuliya Chernova, September 28, 2021:

https://www.wsj.com/articles/startup-aims-to-help-landlords-reward-reliable-tenants-11632830402#

Watson Living Inc. is joining a bevy of startups that are helping landlords give people rewards for essentially being good tenants.

The company has built a digital banking app with an associated debit card that landlords fund each time a renter pays rent on time, signs a renewal lease early, or refers others to rent in the same building.

The startup’s founders see Watson—which recently raised a $2.5 million seed round led by Ulu Ventures, with participation by Trail Mix Ventures, FJ Labs and Gaingels—as part of a wave of integrating financial technology into real estate and other industries.

“You’ve got this massive opportunity, where financial services are not seamlessly built into all the infrastructure that facilitates the interactions between residents and landlords,” said Andrew Firestone, Watson Living’s co-founder and chief operating officer.

Watson charges a subscription fee to landlords, Mr. Firestone said. In return, the startup says it can help real-estate owners and operators save money by better retaining tenants and getting their payments in on time, Mr. Firestone said.

“We can increase lease renewals, we can increase on-time payments, we can increase resident engagement,” he said.

The company has several beta customers, including Los-Angeles based Schon Tepler Group Inc. and Chicago-based Catalyst Realty LLC and CMG Realty & Property Management LLC. Early demand tends to come from fully integrated owner operators of properties that range from Class A to Class C and located in up-and-coming neighborhoods of large metro areas, Mr. Firestone said.

Other startups in this sector include Bilt Technologies Inc., launched in June, which offers credit-card points for rent payments. The New York company announced a $60 million growth funding round, valuing it at $350 million, from Wells Fargo & Co., Mastercard Inc. and real-estate owners including Blackstone Inc., AvalonBay Communities Inc., and Douglas Elliman.

Piñata Global Inc., meanwhile, launched a rent-rewards app last year. Piñata, which raised more than $5 million since last year from investors including Moderne Ventures, is working with more than 400 property management companies and has more than 100,000 users on its platform, according to Lily Liu, the startup’s co-founder and chief executive. In Piñata’s case, renters can earn rewards and get credit reporting to improve their credit scores without having to change the method of rent payment, Ms. Liu said.

These startups are gaining traction partly because the rental market is large and rents are rising, stressing tenants.

Roughly 44 million U.S. households, or 36% of the total, live in rented housing, according to the National Multifamily Housing Council. That share has stayed fairly steady over time, according to Chris Bruen, the trade group’s senior director of research.

Rent costs have been growing quickly after a dip last year. The median asking rent for vacant units in the second quarter of this year reached a record of $1,228, according to the Census Bureau. That’s up from just above $1,000 in the year-earlier quarter.

The real-estate industry, meanwhile, is becoming more technically savvy, Watson’s Mr. Firestone said, and many landlords are attempting to build a brand, changing the transactional relationship they have with tenants into something with greater staying power.

But building a large business in this sector might be a challenge, according to Dave Eisenberg, managing partner at Zigg Capital, a real-estate-tech venture firm. Mr. Eisenberg said he has passed on some deals in the sector so far.

Rent payments typically happen only 12 times a year and landlords and consumers are very price sensitive, he said, which means the margin extracted from such transactions by service providers would likely be minimal, he said.

“Payments innovation is a complex and fascinating area ripe for improvement, we just have not yet been convinced that rental payments, which are only remitted [12 times per year], are one of the best avenues for disruption,” Mr. Eisenberg said.

Watson plans a full launch in November, Mr. Firestone said, and it expects to add features such as enabling rent-payment reporting to credit bureaus next year.

“A component of the rent-rewards equation means that renters can build their credit score through a history of on-time payments of their largest living expense, which is a terrific trend,” Mr. Eisenberg, of Zigg Capital, said, adding he expects more competition to come to this sector, including from general digital banking apps.

Write to Yuliya Chernova at yuliya.chernova@wsj.com

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the September 29, 2021, print edition as 'Banking Apps Aim To Reward Tenants.'