Proptech unicorn VTS scored $125 million in its latest funding round, marking CBRE’s largest bet yet on the technology provider at a critical time for office owners.
The software and data firm received a $100 million from CBRE as part of the round led by the commercial giant, the Wall Street Journal reported. CBRE will get a board seat as a result of its investment, which raised the firm’s valuation to $1.7 billion.
CBRE first invested in VTS in 2016, but the $100 million raise is its biggest investment in the proptech company so far. The company develops technology in-house, but appears to be increasing its position of investing in startups that develop their own technology.
With its latest funding, VTS plans to expand into untapped countries and increase its offerings for property types outside of offices, including retail, residential and industrial properties.
VTS launched in 2012 and counts more than $100 million in annual revenue with its online tools used primarily by office landlords to manage leases and tenant data. In 2019, the company reached unicorn status, hitting a $1 billion valuation that has continued to grow.
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VTS agreed last year to acquire Lane Technologies for $200 million, one of the largest in the history of the proptech sector. Earlier that year, VTS also agreed to acquire Rise Buildings for approximately $100 million, folding in a mobile app used in 350 buildings across 130 million square feet.
VTS manages upwards of 87,000 commercial properties across North America and Europe, primarily in the office sector. The firm’s technology offerings allow landlords options to manage employees’ return to the office and weigh critical decisions about building and lease usage.
— Holden Walter-Warner