Venture capital firm Fifth Wall announced the final close of its $866 million Real Estate Technology Fund III. This follows the $147 million European Real Estate Technology Fund that closed earlier in the year, bringing the firm’s total capital raised for proptech investment to over $1 billion in 2022.
Fund III marks the largest in Fifth Wall’s history as well as its first hybrid fund, comprising both early-stage and late-stage vehicles. It also is the firm’s third fund close this year after its inaugural $500 million Climate Fund in July.
“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 co-founder and managing partner Brendan Wallace. “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.”
Fund III has two vehicles: Fifth Wall Early Stage Ventures, which focuses on startups at the seed to series B stage, and Fifth Wall Fund II, which serves companies at the growth equity or series C stage and beyond.
Fund III commitments came from both existing and new investors worldwide, including leading U.S. real estate firms Arbor Realty Trust, CBRE, Cushman & Wakefield, Equity Residential, Hines, Invitation Homes, JBG SMITH Properties, Meritage Homes, and PulteGroup. Other investors include Annaly Capital Management, bpifrance through the Digital Funds of Funds, CFG Bank and subsidiary Capital Funding, employees of Northwood Investors, Essent, Granite Properties, Keppel Corp., Koch Real Estate Investments, Lineage Ventures, The Moinian Group, Move, and Physicians Realty Trust.
Procore, a construction management software provider, also invested in Fund III, marking the first time that a prior fund’s portfolio company has invested as a limited partner. With Fund III’s limited partners, Fifth Wall boasts over 110 strategic limited partners from over 15 countries. Fund III also brings the firm’s total capital under management to approximately $3.2 billion.
