Redstone launches €50M Tane Fund
Redstone launches Fund for the built world joining forces with fund partner Kauricab Group.
The newly announced Tane Fund will focus on tech companies that solve the biggest shortcomings of the built world, which in light of the Covid-19 pandemic and global warming have become increasingly more visible. While manufacturing productivity has grown 10x since World War 2, labor productivity in the construction sector has remained unchanged. This is vastly noticeable, as the manufacturing world produces almost 40% of global carbon emissions. But not only are the carbon emissions higher than ever in history, but the poorest quintile of the European population is also paying close to 50% of their income towards rent. Achieving homeownership takes us almost twice as long as in previous generations. These are only a few of the several issues caused in light of the world’s development in recent years.
Using its capital, Tane will invest in tech companies and founders that help decarbonize the built environment and make construction more efficient and less resource-intensive. Additionally, companies that help people achieve homeownership faster or facilitate access to the asset class are a core focus. Most important will be the impact of each investment on the environment and society, which will be measured using a standardized framework aligned with the United Nations’ Sustainable Development Goals.
The industry has now accumulated unprecedented momentum and will undergo dramatic changes toward a more sustainable future. For this reason, Redstone considers the timing to be ideal to establish a fund that uses the opportunity of the moment to solve the sector’s problems for a better future.
‘Never have I seen an industry that needs social and environmental change more urgently. At the same time, our data shows an enormous momentum in the market with so many aspiring founders challenging the status quo of how we construct, operate, and transact our built environment. We are here to support those founders in their early stages with capital and meaningful connections. This being the 10th vertical focused fund at Redstone, we have a very good idea of how to pragmatically deliver value for our founders.’ says Niklas Grunewald, Founding Partner at Tane. ‘We are grateful for the commitment and involvement of some of the leading companies in the space as well as the trust of renowned European family offices as investors in our cause’