Fifth Wall to invest in Asian startups with its new property fund

It is the largest proptech-focused VC in the industry.

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Fifth Wall, a Los Angeles-based venture capital firm that usually focuses on proptech, will be investing in Asian startups through its new property fund, South China Morning Post reports.

Brendan Wallace, co-founder and managing partner at Fifth Wall told SCMP that the VC is looking to invest in startups in Asia that use artificial intelligence, robotics, or blockchain technologies in smart buildings and real estate.

This will be the first time that Fifth Wall ventures overseas.

In explaining the decision to invest in Asia, Wallace said, “The real estate industry in Asia is undergoing the same technological sea change as the US experienced three years ago when Fifth Wall launched its first fund”.

“Incumbent real estate owners, operators, and developers in Asia and China, in particular, are increasingly recognizing that their adoption of strategic technologies can differentiate and enhance their businesses,” he added.

Wallace also revealed that Fifth Wall is already working closely with China Vanke on a number of technology initiatives, further implying that Fifth Wall is placing a heavy focus on China amongst other counties in Asia.

Fifth Wall closed the fund, also known as Fund II last week. It managed to raise USD 503 million, exceeding its initial funding target of USD 400 million.

Fund II is more than double the size of Fifth Wall’s first fund, which closed in May 2017 after raising USD 212 million. While the first fund was raised exclusively from nine real estate investors in the US, Fund II attracted 50 corporate strategic investors from 11 countries, including Singapore’s Keppel Corporation as well as mainland developer China Vanke.