Early-stage proptech startups have a potential new source of capital in 1Sharpe Ventures, which recently closed its $90 million inaugural fund.

Roofstock co-founder and chairman Gregor Watson and real estate investor Rob Bloemker started the venture firm in 2021, and had their first close last year. The pair say the fund was “oversubscribed.” For the unacquainted, Roofstock is an online marketplace for investing in leased single-family rental homes that in March raised $240 million at a $1.9 billion valuation.

Oakland, California-based 1Sharpe Ventures was born out of another of the pair’s endeavors, 1Sharpe Capital, an institutional asset manager with equity real estate investments and a credit fund.

The new firm will invest in 30 to 40 early-stage companies in the real estate technology world, with check sizes ranging from $500,000 to $2 million. Specifically, it is targeting pre-seed to Series A-stage companies. Half of the total amount raised -- $45 million -- will be reserved for follow-on investments, according to Watson.

So far, the firm has made five investments, backing startups such as Brazilian fintech Cottage and construction tech startup FlockHomes. It is open to investing in North America, Latin America and Europe.

As it seeks potential investments, 1Sharpe is focusing on three categories: financial transactions and access to capital; real estate human capital; and data and intelligence. For example, 1Sharpe is interested in creating financial products that make real estate more equitable and that can “create opportunities for economic mobility.”

“We believe that purchasing and owning real estate can be much more efficient and that the environments where we live and work should be healthier, more sustainable and more enjoyable,” Watson said.

Watson and Bloemker together have founded and built nine real estate finance and technology platforms, including Roofstock, Dwell Finance, Lessen, Azibo and Creative Juice, among others. Combined, they have invested more than $8 billion in real estate and technology platforms and portfolios encompassing construction lending, multifamily investing, single-family rentals and land development.