September 2020: Michelle Killoran

About Michelle Killoran 

Michelle is currently a Principal at OMERS Ventures in Palo Alto and works in the PropTech investing space. She is a Chartered Accountant (CA), Chartered Professional Accountant (CPA) and Chartered Business Valuator (CBV). She has a Bachelor of Commerce from Queen’s University. In 2020, Michelle was named one of Venture Capital Journal’s "40 Rising Stars under 40" in the global venture community. 

In Conversation with Michelle

Below is a transcript of the interview with Michelle Killoran on September 2, 2020 by Roberta Diachok and Stephanie Wood. Some questions and responses have been edited for brevity and clarity.

Can you tell us more about your story and path to getting to where you are today?

I studied business at Queens in Kingston, which led me down the accounting route. After graduating, I worked at Deloitte in Financial Advisory and Valuations; I started doing a lot of valuations, especially of technology companies. That’s where I fell in love with the technology space. I joined OMERS Ventures four and a half years ago in the Toronto office. About a year and a half ago, I moved to the Bay area to help open the Palo Alto office.

What’s it like day-to-day at OMERS?

OMERS Ventures is a multi-stage venture fund; we look at series A, B, and C companies. We have offices in Toronto, Palo Alto, and London. I am on the investment team there, so my job has 3 parts:

1. Sourcing deals and meeting new founders

2. Working with our existing portfolio companies; that includes board roles and projects with them

3. Thematic development; one theme I focus on is real estate technology.

When you’re looking to invest in PropTech/other firms, what are you looking for?

We do direct investing only [as opposed to fund investments]. When we think of PropTech there are three key areas: residential, commercial, and construction. Two sub sectors that we have been spending time in lately are alternative financing for residential real estate and construction. For alternative financing, this space is about democratizing home ownership. For construction, it’s anything around the adoption of technology in building and on the construction site.

We’d love to hear about one of your recent investments in these spaces. What was top of mind through the investment process?

In the alternative financing space, we spent a lot of time looking at a mix of PropTech and FinTech. Our hypothesis going in, was that it’s harder than ever to purchase a home… But people want to own homes. Some of these new emerging tech solutions make this possible. After months of work, we made an investment in Landed. Landed is a San Francisco based company that enables teachers to purchase homes by providing down payment assistance. What’s important to us is finding a strong and stellar team to build a company in this space. We were happy meeting Jonathan, Alex and the team at Landed. We loved not only their mission around educators and essential workers, but their focus on the specific problem of home ownership today. 

Considering the year everyone has had, we all have our unique stories. What lessons have you learned? How do you think COVID-19 has impacted PropTech, and how is OMERS Ventures navigating through the process?

One lesson would be around how to do your job digitally. A lesson we learned was what it meant to do a deal while fully remote. I think most venture folks had to learn this – how to build relationships without meeting face-to-face. We’re still figuring out how to make it work best.

What resources do you refer to stay up to date on the latest trends?

Luckily real estate is covered widely, especially when people are thinking about the “office of the future”. Traditionally, Wall Street Journal and Business Insider are great – then on the technology side I would recommend CRETech and FinLedger.

Looking forward, what companies in PropTech do you see emerging as leaders?

That’s an interesting one. I think the companies that are really embracing both the industry and technology side together will be successful. For example, in the PropTech construction space, what we’ve seen is founders that know the construction industry well, but also have the technology strength on their team is valuable. I think those are the type of companies who we’re going to see become leaders. It’s still an emerging industry though, so there are plenty of opportunities.

Are there any specific trends you’re excited by?

The modular construction of new homes is fascinating. I think these vertically integrated companies that can build homes at affordable prices is an incredible trend going on right now. When you think of the “new” office – even home offices in people’s backyards – there are so many opportunities for these kinds of structures. There are more companies now that enable them at scale, which is great.

What do you envision PropTech will look like in the next 3-5 years?

I see a lot of consolidation in the next 3-5 years. I think this industry is still emerging, so there are a lot of early stage companies focusing on specific problems. I think, for example, on the residential side, we will see consolidation as larger players look to really take on a bigger role in the full transaction.

⚡ Your morning routine is… Switching back to tea from coffee, catching up on news, and jumping on Zoom!

⚡You’re invited on the first commercial space flight; would you take it? No – I would take the second flight, but not the first. I love space, and I am fascinated by it… But from afar for now.

⚡A book you frequently recommend is… I often recommend the book Educated. It’s a story with a powerful and moving narrative – it’s also a true story.  

⚡A quote or mantra you live by is… Be open to outcomes, not attached to them. 

⚡Your favourite city, besides the one you live in is… Paris.