Fifth Wall (firm)

Fifth Wall is a venture capital firm founded in 2016.[1][2][3] It manages the largest fund specialized in real estate technology [4][5] The firm's name refers to a fifth wall of technology it provides in addition to the four physical walls of a building.[6] It is part of an emerging category of "PropTech" investors.[4]Major financial backers include large real estate industry companies that agree to be matched with the products and services of the firm's portfolio of start-up companies.[7] The firm has a separate fund for investments in emerging retail brands, and invests in climate technology[8] to help real-estate companies reduce carbon emissions from their buildings.[9]

Fifth Wall
TypeLimited Partnership
IndustryVenture Capital
Founded2016
HeadquartersLos Angeles, California, U.S.
Key people
Brad Greiwe, Brendan Wallace
Websitefifthwall.com

History

The firm was founded by Brad Greiwe and Brendan Wallace[9] Greiwe co-founded single-family home rental company Invitation Homes, which went public in 2017 with a $6.7 billion valuation; it received much mainstream attention for its business practices.[10][11] Wallace started his career as a real estate analyst at Goldman Sachs and worked for The Blackstone Group's real estate division. He founded Identified, a workforce optimization data and analytics company which was acquired by Workday in 2014. Wallace also co-founded Cabify, a ridesharing service in Latin America.[12]

Fifth Wall was formed in 2016 and announced the close of its $212 million real estate technology fund (Fund I) in May 2017.[13][14] Wallace said that the firm identified real estate technology as an underserved investment niche because the industry has traditionally used very little technology and was therefore open to disruption.[15]

In July 2019, the firm announced the close of its second real estate technology fund, or Fund II, which closed at $503 million. While Fund I was raised from nine investors in the US only; Fund II consisted of a global investor base from over 50 investors from 11 countries.

In 2020, the firm announced its Retail Fund of $100 million to back emerging retail concepts and their brick-and-mortar growth. As of February 2020, it manages over $1.1 billion in assets.[16][17] The firm announced that it would raise $500 million[18] for its "Climate Tech Fund," a sustainability venture fund investing in technologies focused on energy efficiency, water reuse, decarbonization, climate resilience and risk management.[19]

In 2021, Fifth Wall announced that it had raised more than $1.1 billion[20] across its funds and had a global investor base of over 90 investors.[21] In addition, several large real estate players announced their investments into the firm's Climate Tech Fund, including Equity Residential, Hudson Pacific Properties, Invitation Homes, Ivanhoe Cambridge and others.[22] "Real estate is kind of this massive industry when it comes to climate change, but at the same time we haven't seen the industry commit a significant amount of capital to the tech that's required to decarbonize it," Wallace said.[22]

Investments

Fifth Wall's portfolio companies include Blend, ClassPass, Clutter, Doma[23] (FKA States Title), Hippo, Homebound, Industrious, Lime, Opendoor, Procore, SmartRent and VTS.[24] The firm has also invested in Allbirds, Carbon38, Cotopaxi, Foxtrot, Heyday, Interior Define, Madison Reed, Taft and Untuckit.[25]

References
  1. Sharf, Samantha. "New $212M Venture Fund Goes All In On Real Estate--Can An Innovative Model Force Change In A Dusty Industry?". Forbes. Retrieved 2017-10-31.
  2. "The nation's biggest real estate companies are trusting two men in Venice to find them the next Airbnb or WeWork". Los Angeles Times. 28 April 2017. ISSN 0458-3035. Retrieved 2017-10-31.
  3. Lee, Georgina (2018-08-27). "US proptech fund Fifth Wall attracts Hong Kong, Asian interest". South China Morning Post. Retrieved 2018-10-18.
  4. Putzier, Conrad (2018-08-01). "Who's holding the purse strings?". The Real Deal New York. Retrieved 2018-11-14.
  5. Marinova, Polina (2018-07-25). "Why VC Firm Fifth Wall Ventures Is Bullish on the Tokenization of Real Estate". Fortune. Retrieved 2018-10-18.
  6. "Fifth Wall Ventures raises $212 million fund to invest in real estate | VentureBeat". venturebeat.com. 2 May 2017. Retrieved 2017-10-31.
  7. "Fifth Wall raising another $200M for retail tech startups". The Real Deal New York. 2018-05-24. Retrieved 2018-06-06.
  8. "Fifth Wall adds new partner as it seeks at least $200 million for a new climate impact fund". TechCrunch. Retrieved 2022-01-22.
  9. Zakrzewski, Cat (2018-08-28). "'Retail Real Estate Isn't Dying,'\' Says Fifth Wall Ventures". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-10-18.
  10. Loizos, Connie. "A new venture firm focused on real estate has raised $212 million from real estate industry giants". TechCrunch. Retrieved 2017-10-31.
  11. Conlin, Michelle. "Spiders, sewage, fees – the other side of renting from Wall Street". Reuters. Retrieved 2021-02-06.
  12. "VC firm Fifth Wall raises $212M real estate tech fund from CBRE, EQR, others". The Real Deal New York. 2017-05-02. Retrieved 2017-10-31.
  13. "Fifth Wall Ventures Raises $20M, Led by Identified's Founder". Wall Street Journal. 2016-09-30. ISSN 0099-9660. Retrieved 2017-10-31.
  14. "Fifth Wall Ventures raises $212 million fund to invest in real estate". VentureBeat. 2017-05-02. Retrieved 2021-01-30.
  15. Morris, Meghan (2018-09-11). "Fifth Wall: Meet the venture capitalists funding the future of real estate | PERE". PERE. Retrieved 2018-10-18.
  16. "US venture firm Fifth Wall's US$500 million green fund eyes start-ups with sustainable solutions for real estate sector". South China Morning Post. February 10, 2020.
  17. "This 31-Year-Old Venture Capitalist Has Bet $12 Million On Real Estate And Diversity". Forbes. July 30, 2020.
  18. "Fifth Wall Announces New Climate Tech Fund Has Reached $140 Million From New Backers". Startupsavant.com. Retrieved 2022-01-22.
  19. "Fifth Wall Ventures Preps Real Estate Sustainability Fund". The Wall Street Journal. January 14, 2020.
  20. "Fifth Wall raised a whopping $1.1B in 2021". FinLedger. 2022-01-04. Retrieved 2022-01-22.
  21. "Fifth Wall raised a whopping $1.1B in 2021". FinLedger. 2022-01-04. Retrieved 2022-01-22.
  22. Freedman, Andrew (20 September 2021). "First look: Real estate firms invest $140 million in climate tech". Axios. Retrieved 21 January 2022.{{cite web}}: CS1 maint: url-status (link)
  23. "Doma, Hippo, Homebound, Fifth Wall Founders on Residential Proptech". The Real Deal New York. 2021-06-11. Retrieved 2022-01-22.
  24. "Fifth Wall raises $503 million from property owners seeking tech edge". Reuters. July 17, 2019.
  25. "As Digital Brands Realize They Need Stores, Fifth Wall Ventures Sees An Opportunity". Forbes. February 26, 2020.
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