Fifth Wall Closes $866 Million Fund; Unlocking More Than $1 Billion In New Capital For PropTech In 2022
NEW YORK–Fifth Wall—the largest venture capital firm focused on technology for the global real estate industry—today announced the final close of its Real Estate Technology Fund III (“Fund III”) totaling $866 million. On the heels of its 1$147 million (€140 million) European Real Estate Technology Fund, which closed in February, this brings the firm’s total capital raised toward property technology (“PropTech”) investment to more than $1 billion over the last year.
“It’s the natural next step that we’d 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.”
This not only marks the largest property technology (“PropTech”) fund in history—succeeding the firm’s Fund I and Fund II which were each respectively the largest PropTech funds at closing—it also represents Fifth Wall’s first hybrid fund, comprised of both early-stage and late-stage vehicles. This constitutes the firm’s third fund close in 2022, as the firm also announced its inaugural $500 million Climate Fund inJuly.
“When we started Fifth Wall in 2016, PropTech was not yet a term. 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,” said Brendan Wallace, Co-Founder & Managing Partner, Fifth Wall. “It’s the natural next step that we’d 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, L.P. represents its early-stage venture vehicle, focusing on startups at the seed to series B stage, while Fifth Wall Fund III, L.P. 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 Annaly Capital Management, Inc., Arbor Realty Trust, Inc., bpifrance through the Digital Funds of Funds, CBRE, CFG Bank and its wholly owned subsidiary Capital Funding, LLC, Cushman & Wakefield, employees of Northwood Investors, LLC, Equity Residential, Essent, Granite Properties, Hines, Invitation Homes, JBG SMITH Properties, Keppel Corporation, Koch Real Estate Investments, Lineage Ventures, Meritage Homes, The Moinian Group, Move, Physicians Realty Trust and PulteGroup, among others.
Procore, a leading provider of construction management software, also invested in Fund III denoting the first time that a prior fund’s portfolio company has invested as a limited partner. With the support of Fund III limited partners, Fifth Wall now boasts over 110 strategic limited partners from more than 15 different countries. It brings the firm’s total capital under management to approximately $3.2 billion.
When Fifth Wall was founded in 2016, PropTech was an emerging category of venture with $4 billion of capital activity. Today, it is one of the fastest-growing segments, marking an over $30 billion per year category. In the first half of 2022 alone, more than $8 billion in growth equity and debt funding and multiple $1+ billion M&A transactions occurred in the U.S. PropTech market.
About Fifth Wall:
Founded in 2016, Fifth Wall, a Certified B Corporation, is the largest venture capital firm focused on technology for the global real estate industry. With approximately $3.2 billion in commitments and capital under management, Fifth Wall connects many of the world’s largest owners and operators of real estate with the entrepreneurs who are redefining the future of the Built World. Fifth Wall is backed by a global mix of more than 100 strategic limited partners (LPs) from more than 15 countries, including BNP Paribas Real Estate, British Land, CBRE, Cushman & Wakefield, Hilton Hotels & Resorts, Host Hotels & Resorts, Ivanhoé Cambridge, Kimco Realty Corporation, Lennar, Lowe’s Home Improvement, Marriott International, MetLife Investment Management, MGM Resorts, Related Companies, Starwood Capital, Toll Brothers, and others. Fifth Wall believes this consortium represents one of the largest groups of potential partners in the global Built World ecosystem, which can result in transformational investments and collaborations with promising portfolio companies. For more information about Fifth Wall, its LPs, and portfolio, visit www.fifthwall.com.
The information included herein with regard to Fifth Wall’s Real Estate Technology Fund III (“Fund III”) is a marketing communication and should not be construed as an offer to sell or solicitation of an offer to buy investment interests in Fund III or any other Fifth Wall managed vehicle. Fund III had its final closing; a subscription for interests in the fund is therefore no longer possible. Investors interested in Fifth Wall and its funds should, when taking into consideration this information about Fund III, consider that an investment in Fund III involves a high degree of risk and is only suitable for investors who are capable of evaluating and bearing the risks it represents. There can be no assurance that the Fund III will be able to achieve its investment objectives or that investors will receive a return of their capital. Investors interested in an investment in a Fifth Wall fund should refer to the private placement memorandum of the respective fund before making any final investment decisions. The portfolio companies named herein represent a subset of the current portfolio companies managed by Fund III and does not purport to be a complete list thereof. A complete list of investments currently managed by Fund III is available upon request. The limited partners listed herein represent a subset of limited partners in Fund III and should not be construed as a complete list of investors across all of Fifth Wall’s funds, which may change in composition overtime.
1 Conversion Rate: 1 EUR, 1.0552 USD as of December 12th, 2022