Fifth Wall has closed the largest proptech fund to date with plans to invest more than $1bn (£810m).
The proptech-focused venture capital firm and certified B Corporation has made the final close of its Real Estate Technology Fund III, totaling $866m.
This follows its $147m European Real Estate Technology Fund, which closed in February, bringing the total capital raised for property technology investment by the firm to more than $1bn this year. The firm also closed its inaugural $500m Climate Fund in July.
The $866m fund is Fifth Wall’s first hybrid fund, comprised of both early-stage and late-stage vehicles.
Brendan Wallace, co-founder and managing partner of Fifth Wall, said: “It is the natural next step that we would expand the aperture, deploying two vehicles that enable us to invest from seed to IPO. It signifies our commitment to the ecosystem as it navigates the next wave.”
Fifth Wall’s Fund III refers to two discrete vehicles. Fifth Wall Early Stage Ventures represents its early-stage venture vehicle, focusing on start-ups at the seed to series B stage, while Fifth Wall Fund III denotes the firm’s late-stage venture vehicle, serving companies at the growth equity or series C stage and beyond.
Fifth Wall’s Fund III received commitments from existing and new investors across the globe, including CBRE, Cushman & Wakefield, Hines and Koch Real Estate Investments.
Other investors included Annaly Capital Management, Arbor Realty Trust, bpifrance through the Digital Fund of Funds, CFG Bank and its wholly owned subsidiary Capital Funding, employees of Northwood Investors, LLC, Equity Residential, Essent, Granite Properties, Invitation Homes, JBG Smith Properties, Keppel Corporation, Lineage Ventures, Meritage Homes, Moinian Group, Move, Physicians Realty Trust and PulteGroup.
Procore, which provides construction management software, also invested in Fund III, the first time that a prior fund’s portfolio company has invested as a limited partner. Fifth Wall now boasts more than 110 strategic limited partners from more than 15 different countries.
The firm’s total capital under management is now approximately $3.2bn.
“When we started Fifth Wall in 2016, proptech was not yet a term,” Wallace added. It was an emerging category of venture with a mere $4bn of capital activity. It is now one of the fastest growing segments, worth more than $30bn a year. “Since then we believe that we played an intrinsic role in the ecosystem’s evolution and continue to propel it forward not only via capital, but industry awareness and strategic collaboration between our startups and real estate limited partners.”
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