Venture capital firm Fifth Wall Ventures is currently on track to raise an additional $400 million for its second real estate technology fund, The Real Deal reports. The firm has already collected $100 million from 19 unnamed investors, per documents filed with the Securities and Exchange Commission.
A Fifth Wall spokesperson declined comment about the new fund.
Brendan Wallace and Brendan Greiwe, formerly of Blackstone Group founded Fifth Wall Ventures last year. The company uses funds from major real estate companies to invest in startups that make products to meet the investors’ needs, which provides it with a customer base. Currently, Fifth Wall Ventures has $265 million in assets under management.
Fifth Wall Ventures primary focus is on Proptech. According to the company’s website, it aims to connect the biggest real estate owners and operators with entrepreneurs and innovators who are, “redefining how the world interacts with its physical environment.” Fifth Wall views the “Built World” as a canvas and where people live, work sleep, consume, connect and more. Further, Built World technology has the potential to transform, optimize and democratize the physical environment in ways to help people thrive, according to the company.
Fifth Wall initiates collaboration between technologies for the Built World and industry leaders in real estate from every sector imaginable including retail, industrial, multi-family, office and brokerage. The company has recognized the real estate industry has been late to adapt to the technology that is available. To help people in real estate get up to speed tech-wise, Fifth Wall is presenting them with new technologies that can help how assets are being built, managed, purchased, sold, financed and more.
As these new technologies are proven to help make our physical environment more energy efficient, flexible, accessible, connected and secure, owners of more than $200 trillion of real estate around the world are looking for these advances and consumers are demanding them, according to Fifth Wall.
Even though the opportunities for innovation in real estate are vast, new tech often hits road bumps on its path to move forward because long-time real estate professionals are slow to embrace it and the entrepreneurs creating the tech have a tough time efficiently distributing their solutions. Whether their innovation succeeds or fails often depends on the decision of a handful of high-powered real estate executives.
Fifth Wall works to identify solutions where one of its strategic real estate partners could accelerate a tech company’s growth. The company also works to drive revenue while also reducing risk, enhance go-to-market and speed up the research and development process so that entrepreneurs it works with can realize their vision.
Fifth Wall Ventures, the venture capital firm that has invested in Industrious and Open Door, is on track to raise another $400 million for its second real estate technology fund.
The Los Angeles-based firm has been active on Proptech since the emergence of this new category of tech innovations.