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Fifth Wall Ventures, a venture-capital firm, plans to raise an impressive $500 million for a new fund, the Fifth Wall REACT Fund, according to a regulatory filing on Wednesday.
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Fifth Wall, known as “the largest venture capital firm focused on technology for the global real estate industry,” oversees $3.2 billion in capital, including an $866 million fund raised in 2022 — the largest venture fund dedicated to real estate tech startups, TechCrunch reported.
Earlier that year, the firm, under the leadership of CEO Brendan Wallace, closed on a $500 million climate fund aimed at decarbonizing the property industry. The firm believes that decarbonizing real estate “is one of the most important ethical imperatives and economic opportunities of our lifetime,” according to the company’s website.
Shortly after its founding in 2016, the firm raised $212 million from major industry players to support startups that offer products to help investors grow their businesses.
The new Fifth Wall React fund comes as the proptech industry navigates challenges stemming from rising interest rates in 2022. This year, the Federal Reserve raised rates to their highest levels in over two decades, although recent reductions have sparked renewed investor optimism.
In a 2023 interview with Inman, Wallace emphasized the growing significance of proptech, noting the idea that operators and developers could overlook technological advancements is no longer tenable.
Fifth Wall’s notable exits include companies such as the home seller Opendoor, property insurance Hippo Insurance and smart home tech SmartRent, TechCrunch reported.
