Venture capital firm Fifth Wall Ventures announced today it successfully hit its $500 million goal for a second proptech fund. The Opendoor and Blend-backer now has 48 global limited partners across a number of proptech subsectors, giving startups access to some of the industries top builders and management companies.

Fifth Wall Ventures’ first fund was $212 million, with eight strategic partners, and with the new fund, the venture capital firm wanted to build a consortium of partners, rather than a few individual firms.

Brendan Wallace | Photo credit: Fifth Wall Ventures

“There was more that we can learn from a consortium than individual firms,” Brendan Wallace, the founder of Fifth Wall Ventures told Inman. “A lot of the pain points that real estate owners, operators and developers were facing with respects to technology adoption, were common across many different owners.”

With the consortium model, Wallace tells Inman you get a broad survey of which tech trends are of particular interest to the industry. You also build expertise in different subsectors.

“We get a very good vantage point in terms of where is the industry going,” Wallace said.

Among the partners are CBRE, Lennar, News Corp., Toll Brothers and Greystar Real Estate Partners.

Adding 40 more limited partners can also be a boon to the startups that take funding from Fifth Wall Ventures, because it gives them a lane to a number of strategic partners in their field.

“We can go to a real estate tech startup and instead of offering distribution to one strategic [limited partner] in a subsector, we can offer distribution lanes to many [limited partners],” Wallace said.

With the second fund, Fifth Wall Ventures is also taking more of a global aim, with partners in Asia and Europe, including in Japan, Singapore, China and Hong Kong, as well as the United Kingdom, France and Spain.

Fifth Wall Ventures built a consulting advisory team to work with all of the new partners. The consulting team will work with portfolio companies to support integrations, partnerships, purchase orders and contracts that accelerate growth to benefit limited partners.

The companies investment aperture remains the same: It will be focused on Series A, B and C funding rounds, but the size of those checks might change, Wallace said. He said instead of looking to invest between $5 and $10 million, Fifth Wall Ventures will be looking to invest between $10 million and $25 million.

There are a few areas that Fifth Wall Ventures will focus on investing with this second fund. Wallace said they’re looking at energy efficiency and sustainability in building, as well as smart building technology. Fifth Wall Ventures is also looking at blockchain technology for the global real estate market.

When it comes to residential real estate specifically, Fifth Wall Ventures invested in the iBuyer Opendoor, mortgage company Blend, title company States title and homeowners insurance startup Hippo.

“I think both expanding the number of companies we’re invested in around digitizing the home purchase transaction and driving more cooperation between the home building industry and new financial service technologies is going to be a big push for us,” Wallace said.

Email Patrick Kearns

How do you stay ahead in a changing market? Inman Connect Las Vegas — featuring 250+ experts from across the industry sharing insight and tactics to navigate threat and seize opportunity in tomorrow’s real estate market. Join more than 4,000 top producers, brokers and industry leaders to network and discover what’s next, July 23-26 at the Aria Resort. Hurry! Tickets are going fast, register today!

Thinking of bringing your team? There are special onsite perks and discounts when you buy tickets together. Contact us to find out more.

SAVE MY SEAT

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription