Venture Vanguard ⎟ Why Real Estate And Tech Need Strategic Partners

April 11, 2025

We dive into JP Bowgen's venture journey, exploring the strategic advantages of PropTech and ConTech investments and why real estate tech needs more than just money—it needs connected partners.

Patric Hellermann

Venture Vanguard ⎟ Why Real Estate And Tech Need Strategic Partners

tl;dr

JP's path to venture capital started with connecting dots through expert networks and corporate innovation

Camber Creek's unique approach offers startups access to 300+ real estate and construction companies

PropTech funding skyrocketed from $180M in 2011 to $15B in 2024, an 82x increase

Successful tech investments require more than capital—they need industry connections

JP believes construction tech might leapfrog PropTech in adoption within the next year

Many PropTech and ConTech startups might be better off bootstrap funding than seeking venture capital

Feedback is the best type of feedback, and that translates not only to how we speak to each other as a company but how we speak to our portfolio companies.

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JP's path to venture capital started with connecting dots through expert networks and corporate innovation

We often think venture capitalists follow a straight path. But JP Bowgen's journey proves otherwise. While his college peers mapped out careers in consulting and banking, JP focused on his natural talent—connecting with people.

This skill led him to AlphaSites, an expert network connecting information-seekers with industry experts. His role? Finding former CFOs of guitar companies for private equity firms. The networking chops he developed would become invaluable.

"One of my superpowers is running through walls," JP explains. "I have a chip on my shoulder if I can't get in front of somebody." This persistence translates directly to venture capital success. Finding creative inroads to decision-makers is essential for diligence and helping portfolio companies reach customers.

JP's path took a turn when Macy's recruited him for their corporate innovation team. Many people don't realize Macy's is also a real estate giant. They operate around 550 department stores, owning more than half of those properties. This real estate component made technology integration particularly interesting.

At Macy's, JP got hands-on experience with three venture fundamentals: investing in startups, establishing tech partnerships, and incubating new business models. Though corporate venture differs from traditional VC, this three-year stint provided crucial experience.

What's fascinating is how concepts JP's team developed—small format stores and social media selling—are only now becoming key strategies for Macy's years later. This highlights an important lesson for construction tech: meaningful change takes time. Seven years is a reasonable timeline for seeing tangible results in traditional industries like real estate and construction.

Camber Creek's unique approach offers startups access to 300+ real estate and construction companies

After Macy's restructured its innovation team, JP doubled down on his venture capital aspirations. Through networking, he connected with Camber Creek, where he immediately felt alignment with their culture of candor and support.

Camber Creek's origin story reflects their strategic approach. Founded in 2011 by Casey Berman from a family with significant real estate holdings, the firm started by asking a simple question: Could technology make real estate assets more valuable?

The firm's thesis addresses a fundamental challenge in PropTech and ConTech—access to customers. Without this access, startups struggle to succeed. Camber Creek solves this by raising funds from over 300 real estate and construction companies hungry for technology solutions.

Their investment process is methodical and customer-focused. Before investing, they test new technologies with their LP companies, collecting real-world feedback. This approach de-risks investments by confirming market demand before writing checks.

Take Flex, a Camber Creek portfolio company. After investment, they connected Flex with owners and operators of over one million apartments. The company scaled from hundreds of thousands in ARR to nine figures. While not all growth came directly from these introductions, the access was invaluable.

This model creates a symbiotic relationship. LPs get vetted technology solutions, startups get customer access, and Camber Creek makes money when these companies succeed. JP describes their role to LPs as "your outsourced R&D department that's also going to make you money."

The real estate and construction industries suffer when they integrate with startups that fail within 12-24 months. Such failures waste time, money, and organizational energy. By vetting hundreds of startups across specific categories, Camber Creek helps their LPs avoid these costly mistakes.

PropTech funding skyrocketed from $180M in 2011 to $15B in 2024, an 82x increase

The numbers tell a compelling story. When Camber Creek launched in 2011, venture investment in PropTech and ConTech totaled just $180-200 million. Fast forward to 2024, and that figure has exploded to around $15 billion—an astounding 82x increase.

This dramatic growth underscores how much the space has evolved. In 2011, a fax machine was considered high-tech in many real estate offices. Today, PropTech and ConTech represent a significant portion of venture investment globally.

Despite this influx of capital, adoption remains a challenge. JP notes that historically, one in four real estate and construction companies spend less than 1% of their revenue on digitization initiatives. This disconnect creates both opportunities and obstacles for startups.

The funding explosion has created a crowded marketplace. Too many startups now compete for attention from the same real estate and construction companies. This environment makes it difficult for these companies to evaluate every potential technology partner.

Here's where Camber Creek's approach provides particular value. They can assess all 20 companies in the generative design space or all 50 companies offering security deposit alternatives, forming opinions on which will succeed long-term. This curation saves their LP companies countless hours of evaluation.

The PropTech funding boom has also created heightened expectations. With billions flowing into the sector, investors expect rapid growth and adoption. However, the reality of implementation in real estate and construction often moves at a different pace.

Successful tech investments require more than capital—they need industry connections

We've all heard the venture capital cliché about "adding value beyond the check." But JP divides VCs into two categories: those who actually add value and those who only claim to. Camber Creek firmly positions itself in the first group.

The construction and real estate industries remain woefully under-digitized. Despite the funding boom, technology adoption moves slowly. This creates a particular challenge for startups—they need more than just capital to succeed.

"Can you succeed without an investment from Camber Creek? Absolutely," JP acknowledges. But their network provides advantages that pure financial backers cannot match. Their connections help with business development, product refinement based on customer feedback, and hiring industry experts.

This isn't merely theoretical value. Their portfolio companies receive concrete benefits: introductions to potential customers, product feedback from industry leaders, and access to talent with domain expertise. These connections create tangible opportunities that accelerate growth.

The relationship between VCs and founders should be a partnership. As JP puts it, "Everyone knows we're rowing in the same direction." This alignment creates trust that goes beyond financial transactions.

For junior VCs, building valuable networks becomes crucial. Time is precious in venture capital. No one wants to waste effort on deals that won't materialize. By cultivating strong relationships with other VCs, industry experts, and founders, young investors establish credibility and access better opportunities.

Personal brand also matters in today's venture landscape. While conducting yourself professionally remains the baseline, additional activities—like podcasts, thoughtful LinkedIn content, or industry writing—enhance visibility and credibility. The best VCs combine professional conduct with thoughtful public engagement.

JP believes construction tech might leapfrog PropTech in adoption within the next year

While Camber Creek's portfolio historically tilts toward PropTech (roughly 70% PropTech, 30% ConTech), JP finds construction technology particularly compelling. He estimates construction tech adoption lags 5-7 years behind real estate tech. However, he sees signs this gap might close rapidly.

"I think very quickly construction tech might leapfrog PropTech here in the next year," he predicts. This potential acceleration makes the construction space especially interesting for investors willing to work through adoption challenges.

Traditional boundaries between owner-focused and contractor-focused technologies are blurring. Solutions once targeted exclusively at general contractors now sell upstream to owners and developers. This shift creates larger market opportunities for construction tech startups.

The dynamics driving this change are straightforward. General contractors and subcontractors typically adopt technology slowly and remain price-sensitive due to tight margins. When startups spend 6-12 months trying to win a GC that will only pay $20,000 annually, the economics become challenging.

In contrast, developers and owners have deeper pockets and face fewer margin constraints. They increasingly demand the same visibility into projects that contractors have, creating a parallel market for construction technology. This dynamic allows startups to sell to both audiences.

Twin Knowledge exemplifies this trend. By selling to ownership groups while benefiting contractors, they provide a unified layer of intelligence. When all stakeholders speak the same language, they can address industry-wide challenges like the $65 billion worth of rework that occurred in 2024.

This convergence creates powerful network effects. As more project participants adopt compatible technologies, the value of these platforms increases exponentially. This could accelerate adoption across the entire construction ecosystem.

Many PropTech and ConTech startups might be better off bootstrap funding than seeking venture capital

JP's hottest take challenges conventional wisdom: "I'm not actually convinced that PropTech and ConTech are right for venture capital money right now." This statement might seem surprising coming from a venture capitalist investing in these sectors.

His reasoning stems from industry realities. Given the slow adoption cycles in real estate and construction, the venture capital model—which typically expects rapid growth and large exits—might not align with these sectors' natural development pace.

JP prefers alternative funding approaches like "seed strapping"—raising just enough capital to reach profitability, then growing sustainably. This model acknowledges the realities of tech adoption in these traditional industries.

The venture capital playbook assumes rapid scaling. But when target customers adopt slowly and cautiously, startups face a fundamental mismatch between investor expectations and market realities. This disconnect creates pressure that can push companies toward unsustainable growth tactics.

Bootstrap or lightly capitalized companies can afford patience. They can grow at the industry's natural pace, building sustainable businesses that align with customer adoption timelines. Without the pressure of venture returns, they can focus on long-term value creation.

This perspective highlights a broader conversation about appropriate capital structures for different business models. Not every successful technology company needs venture funding. Sometimes, patient capital better serves both founders and the industries they aim to transform.

For founders considering their funding options, this insight suggests looking beyond traditional venture capital. Understanding your industry's adoption cycles should inform your capital strategy. In slower-moving sectors like construction and real estate, less might actually be more when it comes to external investment.