Problem Statement
Why disciplined PropTech consolidation compounds.
Pricing underdiscipline
Many PropTech companies price on competitive benchmarking rather than value delivered, leaving significant ARR growth on the table relative to the measurable productivity improvements their software generates for customers.
Weak retention infrastructure
Inadequate customer success, onboarding, and engagement programs drive above-market churn — undermining ARR growth regardless of new logo acquisition velocity and creating concentration risk in retained enterprise accounts.
Fragmented distribution
Direct-sales-only businesses miss channel partnerships, integration ecosystem relationships, and marketplace distribution that would accelerate ARR with lower incremental GTM cost.
Under-utilized tuck-in M&A
Founders frequently identify complementary acquisition targets but lack the M&A execution infrastructure, legal capacity, and integration bandwidth to close without disrupting the core business.
Our Solution
A proprietary operating system deployed within 90 days of close.
The same four levers, applied consistently across every acquisition — adapted to each portfolio company’s ARR stage, customer profile, and competitive positioning.
Lever 01
Systematic Pricing Optimization
Every portfolio company’s pricing architecture is evaluated within 30 days of acquisition — assessing value-based pricing opportunity, competitive positioning, and retention-weighted ARR impact. Revenue impact is monitored monthly.
Lever 02
Customer Retention & NRR Improvement
Structured onboarding, customer success, and expansion revenue infrastructure deployed at each portfolio company — targeting measurable churn reduction and NRR improvement within 12 months.
Lever 03
Distribution Channel Expansion
Channel partner relationships, integration ecosystem connections, and marketplace distribution developed for each portfolio company — reducing dependence on direct sales and lowering incremental GTM cost.
Lever 04
Tuck-In M&A Execution
End-to-end tuck-in acquisition execution — origination support, target evaluation, legal execution, and integration management — financed through the relevant primary fund or Reserve Fund I ($14.294B).
Screening Criteria
The thresholds every deal is measured against.
| Criterion | Threshold |
|---|---|
| Minimum ARR at Acquisition | $3M ARR (early-stage strategies); $10M+ ARR (mature platform strategies) |
| Net Revenue Retention | Minimum 95% at acquisition or clear path to 100%+ within 12 months |
| Churn Rate | Below 15% gross ARR churn annually for SaaS businesses |
| Customer Concentration | No single customer exceeding 20% of total ARR |
| EBITDA Margin / Path to EBITDA | Current EBITDA positive or defined path to EBITDA positive within 18 months |
| Technology Architecture | Modern cloud-native or clear migration path; no critical technical debt blocking scalability |
| Integration Complexity | Assessed by the Develobrite operations team as feasible within 90-day integration protocol |
| Minimum LP Commitment | $2,000,000 |
Investment Committee Process
From initial screen to close in 8–11 weeks.
Initial Screen
48-hour review against fund category alignment, ARR threshold, NRR profile, and integration feasibility. Sub-threshold submissions declined with written feedback.
Detailed Underwriting
3–4 weeks: ARR cohort analysis, churn decomposition, GTM efficiency review, tech architecture review, management evaluation, and IC memo with base/upside/downside scenarios.
IC Review
1 week: Investment Committee — chaired by Alexandra Pohl — reviews the full memo, management presentation, and legal DD summary. All decisions documented in writing.
Legal & Close
4–6 weeks: definitive agreements, management retention, earnout structures, and post-close integration obligations. Terms finalized before any capital is committed.
Investment Stage Framework
Where our capital fits in the PropTech growth curve.
| Stage | Target ARR | Capital Range | Primary Value Creation Lever |
|---|---|---|---|
| Stage 1 — Early | $3M–$10M ARR | $10M–$40M | Pricing optimization and churn reduction |
| Stage 2 — Growth | $10M–$30M ARR | $30M–$100M | NRR expansion and distribution channel development |
| Stage 3 — Scale | $30M–$75M ARR | $80M–$250M | Tuck-in M&A and platform consolidation |
| Stage 4 — Platform | $75M+ ARR | $200M–$750M | EBITDA margin improvement and exit positioning |
| Stage 5 — Tuck-In | Portfolio add-on | $5M–$50M | ARR accretion and competitive moat expansion |