US-based venture capital firm Fifth Wall Ventures officially launched yesterday with $212m from a syndicate of limited partners that includes several corporates, and will seek to invest in real estate technology developers.
Fifth Wall’s anchor investors include real estate services provider CBRE, real estate and warehouse logistics company Prologis, house builder Lennar, office space developer Hines, apartment owner Equity Residential and real estate investment trusts Macerich and Host Hotels & Resorts.
Lowe’s, the home improvement retailer that owns corporate venturing unit Lowe’s Ventures, is also an LP, as is real estate holding company Rudin Management Company.
Fifth Wall is concentrating on technologies that feed into what it calls the Built World, the ecosystem of companies that own and operate space, as well as those developing technologies that can modify and innovate how that space is accessed and used.
In theory, the space would encompass everything from short-term accommodation marketplaces like Airbnb to co-working networks such as WeWork, home selling services like OpenDoor or smart building materials providers such as View or SolarCity.
The idea is that the corporate LPs will be the kinds of companies working with these startups so it makes sense for them to be involved in the venture capital investment process, particularly as the real estate technology segment is often reliant on early adoption by industry incumbents.
Brendan Wallace and Brad Greiwe, Fifth Wall’s co-founders, said: “These corporates wanted to help entrepreneurs, but a platform to do so had not emerged.
“And in a world filled with often undifferentiated venture capital investors, Built World entrepreneurs increasingly seek value-added investors with a unique ability to understand and support their company’s growth.”
The firm has so far invested a total of $60m in Opendoor, retail space provider B8ta, fitness subscription service ClassPass, storage service Clutter, digital notary platform Notarize, real estate leasing platform VTS and States Title, a stealth-stage mortgage technology startup that counts media group Bloomberg as an investor.
Chandra Dhandapani, chief digital and technology officer for CBRE, said: “Our active engagement in Fifth Wall Ventures will provide early insight into companies and technologies that have the potential to enhance our ability to deliver great outcomes for our clients.
“This is one vehicle, among several, that CBRE will use to identify emerging technologies, connect with top talent, build strategic partnerships and make investments that will create further competitive advantages for our clients and our company.”