The Real Deal New York

Fifth Wall launches $400M RE tech fund

VC firm's second vehicle has already picked up $100M from 19 investors
By David Jeans | June 21, 2018 05:42PM

From left: Brendan Wallace and Brad Greiwe of Fifth Wall (Credit: Twitter)

UPDATED: Thursday, June 21 at 7:06 p.m. 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 already pooled $100 million from 19 unnamed investors, according to documents filed Thursday with the Securities and Exchange Commission. A source with knowledge of the fund said the initial capital was raised in one month.

A spokesperson for Fifth Wall declined to comment about the new fund.

The new fund doubles-down on the firm’s initial offering last year, when it raised $212 million from 66 investors, including CBRE, Prologis, Hines, Lennar, Host Hotels & Resorts, Equity Residential and Macerich Properties.

Founded last year by Blackstone Group alumni Brendan Wallace and Brad Greiwe, the venture capital firm says it uses funds from major real estate companies to invest in startups that make products to meet the needs of the investors, thereby providing them with a customer base. In a blog post last month, Greiwe said the company’s model had generated $100 million revenue for its portfolio companies.

One of those startups is Industrious, a Brooklyn-based co-working company, that leases the majority of its offices outside of New York, unlike its competitors WeWork and the Yard. Fifth Wall led its $80 million Series C funding round in February.

The firm has also expanded into different sectors of commercial real estate. Last month, The Real Deal reported the firm had raised $60 million from two investors for another fund, which would focus on retail real estate technology.

Correction: An earlier version of this story incorrectly reported that Fifth Wall had invested in Airbnb.