MetaProp NYC closes second proptech fund

Real estate companies have become some of the biggest backers of real estate technology startups. MetaProp NYC has closed MetaProp Ventures II, its second venture capital fund, with $40 million. The venture capital fund was 50 oversubscribed, and investors included RXR Realty Corp., PGIM Real Estate, Cushman & Wakefield, JLL Spark and Altus Group.

The fund will invest in startups across the proptech landscape, with investments in 3D printing, blockchain, co-working/co-living, augmented reality and digital energy management across all global real estate asset types including residential, office, retail, hotel and industrial.

“Because of our unique position in the market, we are able to identify emerging proptech opportunities and to invest with conviction early in a company’s maturity,” said MetaProp partner and head of venture capital Zak Schwarzman in a statement.

Proptech has attracted venture capital funding from both dedicated real estate VC funds as well as more general-interest tech VCs. Fifth Wall Ventures, a VC firm based in Los Angeles, focuses exclusively on what the firm calls “built world technology” — real estate, hospitality, construction and urban infrastructure technology. Fifth Wall has raised capital from a number of traditional real estate companies, including CBRE, Equity Residential, Hines, Host Hotels & Resorts, Lennar Corp., The Macerich Co., Prologis and Rudin Management Co. The firm recently launched Fifth Wall Ventures Retail Fund, which will target investments in retail-related technologies. The fund had raised $60 million, as of a May filing with the Securities and Exchange Commission, with a target of $200 million for investment in the sector.

In addition, JLL Spark, a division of the global property services company, has launched its first venture capital fund. The JLL Spark Global Venture Fund will invest up to $100 million in early-stage real estate technology companies. The venture fund is focusing on early-stage companies and will make primarily seed and series A investments, ranging from a few hundred thousand to several million dollars. It is being funded by JLL as the sole limited partner.

For more about this growing sector, see “The proptech revolution” in the upcoming July/August issue of Institutional Real Estate Americas.