Unlocking Over $1 Billion In New Capital For Real Estate Technology | Fifth Wall

Fifth Wall is the largest venture capital firm focused on technology for the global real estate industry-and today we close our Real Estate Technology Fund Ill totaling $866 million. On the heels of our closing our European Real Estate Technology Fund, this brings our total capital raised toward property technology or "PropTech" investment to more than $1 billion over the last year.

This not only marks the largest property technology ("PropTech") fund in history­ succeeding our 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 our third fund close in 2022, as we also announced our inaugural $500 million Climate Fund in July of 2022.

More from The Wall Street Journal — Fifth Wall Ventures Management LLC raised the largest-ever venture fund focused on real-estate technology companies, the company said, a sign that some major investors are still bullish on property startups despite this year’s surge in interest rates.

The $866 million fund, which closed on Friday, will invest in both early- and late-stage startups. Annaly Capital Management Inc., Arbor Realty Trust Inc., CBRE Group Inc., Equity Residential and a number of other major real-estate companies invested in the fund.

The fund’s closing comes during a challenging time for property startups, which face higher borrowing costs. A number of real-estate technology companies, often known as proptech companies, have also been hit by the drop in home sales. That makes it harder for home flippers, mortgage marketplaces and similar businesses to make money.

“You’re just dealing with a world where macroeconomic conditions have changed dramatically,” said Fifth Wall’s managing partner, Brendan Wallace.

Higher rates and this year’s slide in technology stocks have also hit the valuations of private tech companies and made venture investors more reluctant to write big checks.

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Statements and opinions herein are not necessarily those of Fifth Wall and Fifth Wall makes no representation or assurance that forward looking statements, forecasts or projections are correct, will be achieved. Recipients of this information should not treat it as tax, regulatory, accounting, legal, investment or any other advice, and it should not be relied on as such. Nothing herein constitutes an offer to sell or solicitation of an offer to buy investment interests in any Fifth Wall managed vehicle.

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