Building Tomorrow: Venture's View of Construction Tech

Building Tomorrow: Venture’s View of Construction Tech

May 16, 2024

Interviewed by Nicolas Sauvage on September 28, 2023

Kathryn Schekel is something of a Renaissance woman, and there is no doubt that her eclectic talents contribute to her success in corporate venture capital. The Hines Global Ventures managing director is an accomplished pianist who combines an undergraduate degree in molecular biology, a master’s in public policy, and certifications in politics and philosophy.

Introduction

Kathryn Schekel is something of a Renaissance woman, and there is no doubt that her eclectic talents contribute to her success in corporate venture capital. The Hines Global Ventures managing director is an accomplished pianist who combines an undergraduate degree in molecular biology, a master’s in public policy, and certifications in politics and philosophy.

A Unique Path to Success

She told Corporate Venturing Insider and host TDK Ventures President Nicolas Sauvage that “ground learning, working on real deals, real problems, and building real teams” led to her career in CVC.

As someone who excels in diverse disciplines and has worn many hats, Kathryn’s holistic history contributes to the success of Hines Global Ventures, one of the largest privately held real estate investment funds in the world, with close to $95 billion in assets under management in 30 countries.

Kathryn is originally from Arizona and attended Arizona State for her undergraduate and graduate. While still in college, Kathryn founded Spark Open Research, an education tech startup connecting aspiring scientists with established professionals to enhance their projects and field understanding. She and her cofounders felt as soon-to-be graduates, there was “a need for some real practical training outside of their classroom.”

In 2016, Kathryn’s startup was integrated into Arizona State University, aligning with the institution’s reputation for innovation. She continued her tenure at ASU, progressing from a biology research assistant to a project coordinator for the Office of Knowledge Enterprise Development, focusing on innovation. She was involved in special projects for the Office of the President, incorporating her startup into a university initiative a logical and streamlining move.

Later, she assumed a director’s role at ASU and managed the Starbucks College Achievement Plan, offering full tuition reimbursement to Starbucks employees. Despite more than a decade at the school, Kathryn opted for a career shift, joining McKinsey and Company for a two-year stint in finance — an unexpected transition, but she was looking for a change.

Founding Hines Global Ventures

After McKinsey and Company, Kathryn joined Hines as head of its Strategic Projects Office. In this position, she reported directly to the CEO and executive committee. The office was a precursor to Hines Global Ventures, charged with facilitating internal collaboration between business units and assisting in the governance of the executive committee. However, the company and division needed an external orientation to innovation, so Kathryn was asked to build what has evolved into Hines Global Ventures in May 2022.

Hines chose corporate venture capital and an incubator to advance external industry innovation. However, it was not alone in creating the right structure for the new corporate venture capital firm. Kathryn benefitted from the GCV ecosystem, one of the largest groups of corporate investors in the world.

“The GCV community is unparalleled,” she explained. “I have not seen another group like it that’s really activating corporate-based venture.”

Exploring the Hines Structure

Hines Global Ventures operates within the broader EXP business unit alongside Hines Global ESG, which focuses on environmental, social, and corporate governance.

“The choice to put sustainability and venture in the same business unit was very intentional,” according to Kathryn.

This sister organization steers Hines toward a future aligned with global concerns, particularly emphasizing sustainability. Kathryn underscores the intentional decision to house sustainability and venture initiatives within the same business unit, citing their shared objectives.

Kathryn went on to identify Hines Global Ventures’ three ‘pillars’, which define its activities: venture building, venture investing, and strategic partnerships.

Venture building involves incubating early-stage companies internally, potentially spinning them out from Hines. For established startups, Hines will engage in venture investing, providing both capital and advisory support to foster their growth. Hines will provide the startups with a capital investment and advice to help them grow. Additionally, Hines employs ad hoc one-time strategic partnerships as a nimble approach to pursue commercial opportunities opportunistically.

The current stage marks the early days, not only for Hines Global Ventures but also for its integration of these multifaceted functions.

Kathryn noted, “This is really the first 12 months of the model in motion.”

While some CVC units incorporate incubators, including strategic partnerships is uncommon. The untested nature of this combination underscores the challenge and opportunity, with Kathryn acknowledging the model’s infancy and the limited exploration of one-off opportunities.

Looking to the Future

A prominent focal point on the horizon is Hines’ ambitious 2040 net-zero initiative. Within this landscape, Hines Global Ventures plays a pivotal role. Their incubator has invested in CQuel, a group working to create a carbon marketplace. The startup is encouraging renewable energies and energy efficiency in its investments and has made it one of the cores of its platform. For its final function, Kathryn described how “there could be partnership opportunities down the road, but those are ones that I think we have yet to uncover.”

Kathryn is excited about “Next-Gen ESG, revolutionary technology, and the evolving use of physical space. I’m personally really excited about solutions that truly address what it means to be in a space and a place in this particular year and the years ahead for whatever purpose it is that you need to be in that space for around your work life, specifically, as well as your social life.”

Kathryn says Hines Global Ventures already has a few startups incubating that explore the flexibility, access, and usability of space, and she’s “excited about seeing the solutions that founders and other teams will be doing out in the field.”