Los Angeles-based venture capital firm Fifth Wall Ventures announced this week that they had closed the books on their second fund worth $503 million.
According to the company, the funds will be used to fuel growth in the currently-exploding proptech market, leading the company to refer to its latest achievement as the “largest real estate venture fund” raised to date.
More than 50 limited partners across 11 countries participated in the fundraising, many of them entrenched in the real estate industry themselves.
Fifth Wall’s “Fund II” comes two years after the company’s arrival on the Silicon Beach scene, and it is double its debut fund of $212 million. With that cash, the firm made more than 30 strategic investments, including lead investments in VC rounds for Lime, Enertiv and Shipwell.
While previous investments have run the gamut in terms of industry and location, the company has emphasized real estate technology for its upcoming partnerships. It’s a move with strong precedent: the proptech industry has witnessed rapid growth in the past few years. There are billions being poured into firms like WeWork, Compass and Knock. Reuters reports that $4.8 billion in real estate investments were made in the first quarter of 2019 alone.
Many of proptech’s biggest players are located on the opposite coast in New York City. Fifth Wall’s newest fund officially enters Los Angeles into the running as a proptech capital in its own right.
“Los Angeles is an economic capital — a place where businesses put down roots and quickly become very successful,” said Mayor Eric Garcetti in a statement. “Companies like Fifth Wall have powered our economy to new heights, and their successful launch of a new fund is the latest reminder that businesses in Los Angeles don't just mark history — they make history.”
