Moderne Ventures Closes $200M Fund II for Digital Transformation

Moderne Ventures Secures $200 Million for Second Fund

Constance Freedman, founder and managing partner of Moderne Ventures, alongside partner Liza Benson, have cultivated a robust network of over 700 industry leaders since 2015.

This network spans the real estate, finance, insurance, and home services sectors.

Fund Details and Strategic Partnerships

Recently, their early-stage venture capital firm successfully closed an oversubscribed second fund, amassing $200 million in capital.

These funds will be allocated to promising startups operating within and adjacent to their core industries.

The new fund boasts participation from both new and returning strategic partners, including prominent names like AvalonBay Communities, Camden Property Trust, and Greystar.

Additional partners include JBG SMITH, Leading Real Estate Companies of the World, Oaktree Capital Management funds, and Realogy.

With this latest closure, the Chicago-based firm now manages a total of $350 million in assets.

Freedman’s Background and Fund Origins

Freedman’s professional journey began in real estate, encompassing roles in sales and leasing prior to the emergence of the “dot-com” era.

Following the completion of her MBA at Harvard, she transitioned into the investment landscape.

In 2008, she launched a $20 million fund concentrating on information and media, and also collaborated with the National Association of Realtors to invest in real estate technology.

This initial fund served as the precursor to Moderne Ventures, shaping many of the firm’s current strategies, as Freedman explained to TechCrunch.

Strategic Investment Philosophy

A key element of Moderne’s approach involves identifying companies from diverse sectors and integrating them into the real estate ecosystem.

“Real estate is subject to cyclical trends, therefore, reliance on a single industry should be avoided,” Freedman stated.

“If a company utilizes a specific industry as a starting point but possesses the capacity to expand into others, it unlocks a larger market and potentially greater returns for investors.

This diversification also strengthens the fund’s overall performance.”

Investment Size and Stage

Moderne Ventures typically makes initial investments ranging from $4 million to $7 million.

The firm’s preferred investment targets are companies generating revenue between $2 million and $10 million.

The majority of their investments fall within the late seed to early Series B stages.

Portfolio Performance and Notable Investments

To date, the firm has invested in over 100 companies, including five unicorns and three companies that have undergone initial public offerings (IPOs).

Furthermore, numerous portfolio companies have secured additional financing in the past year.

Notable investments include ICON, Porch, Better Mortgage, Hippo Insurance, Homesnap (acquired by Costar), MotoRefi, Super, EasyKnock, and Kaiyo.

Seven companies have already received investments from the new fund.

The Moderne Passport Program

Beyond its fund, Moderne operates an industry immersion program known as the Moderne Passport.

This program connects startups with its extensive network of over 700 industry executives and corporate partners.

Currently, the program encompasses approximately 80 companies.

Freedman indicated that Moderne intends to “make substantial investments in roughly one-third of these companies.”

A new class is currently open for applications, with another scheduled to launch in seven to ten months.

Hands-on Approach and Growth Facilitation

The firm adopts a proactive, hands-on approach to fostering company growth, particularly in the realm of go-to-market strategy.

Moderne facilitates over 1,000 meetings annually between its portfolio companies and its network, frequently leading to pilot programs.

Leveraging AI for Targeted Marketing

Addressing the prevalence of artificial intelligence applications within its focus industries, Freedman highlighted that over $30 million is spent on marketing efforts targeting non-potential buyers.

Moderne Ventures is utilizing AI and data analytics to refine marketing strategies, ensuring companies reach the most relevant audiences.

“We provide a low- or no-cost avenue for partners to evaluate services before committing to a purchase, thereby reducing sales friction,” she explained.

“In exchange, companies gain valuable exposure opportunities that accelerate their growth.”