At Inman Connect New York, a group of VCs agreed that every new company wanting money needs a leader with the courage to bleed for their company.

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If you want to get funded, you need to have a big idea, some revenue and, especially, tenacity.

That was the consensus from a group of venture capitalists gathered to discuss how fledgling real estate software innovators can find the money they need to scale.

The group never broached what specifically they look for in terms of product types or category (CRM, transaction, AI lead generation), but they all agreed that every new company wanting money needs a leader with the courage to bleed for their company.

Dave Eisenberg, founding partner of Zigg Capital said his company is offering “Ninety-nine ‘noes’ for every one ‘yes.’”

“You’re looking for domain expertise, you’re looking for the founders of the business to have some reason why they’re the right person for this particular company, and you’re looking for a lot of tenacity,” Eisenberg said. “The failure rate on proptech startups is not zero. You’re looking for people to work through a COVID, to work through a high interest rate environment.”

Louise Dickins, Founder of LMRE, concurred.

“We partner at a more strategic level with the CEO, COO, and founders who are resilient, and who get them through times like the last year [which] was particularly challenging. We need to find that gravitas,” she said.

L.D. Salmanson, CEO of Cherre who has chosen the title of “Maverick Herder,” went bigger when describing what he looks for.

“Most VCs, whether they say this or not, look at it in a very simple way: ‘Will this change the world?’ Because that translates into the potential to make a lot of money,” he said. “They’re looking for founders who can will this shit into existence against all odds. They couldn’t give up even if they tried.”

Traction is key, too, according to Salmanson. Maybe it’s an aura of excitement around the idea or a growing fanbase or even a powerful, emotional story. But, Salmanson said, if he doesn’t see one of those things, he’s not providing funding money.

Gedion Haddis of Camber Creek, which recently backed Ryan Serhant’s new technology company, told the audience they prioritize companies with a vision for the future and who can define a category.

“We focus on foundational differentiation, scalability and leadership. As with Serhant, we saw Ryan’s clear real estate expertise, a very unique platform and an innovative technology he was looking to bring to market,” Haddis said. “That combination really addressed pain points in an environment that is rapidly shifting.”

The panelists’ overall approach toward leadership and proof of concept is in agreement with findings from The Center for Real Estate Technology and Innovation (CRETI).

“Investors increasingly favored companies with robust financials and a clear ROI narrative,” the Center said in its year-end report for 2024. “Gone are the days of growth at all costs. Instead, the focus has shifted toward sustainable, scalable solutions with clear ROI. This shift is not merely a reaction to economic conditions; it represents the maturation of an industry that has grown increasingly sophisticated over the past decade.”

In short, a great idea isn’t going to get it done moving forward, at least not without revenue to show for it.

Email Craig Rowe

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