Los Angeles fund Fifth Wall says it will channel some capital from its new property fund into Asian start-ups
- Fifth Wall says it will seek out Asian start-ups involved in artificial intelligence or robotics for smart buildings, as well as concepts that leverage blockchain technology
- Mainland developer China Vanke ranks as the only mainland company among the 50 backers of Fund II, a venture capital fund run by Fifth Wall that raised US$503 million
Fifth Wall Ventures, a Los Angeles-based venture capital firm, plans to invest part of the proceeds from its new US$503 million property technology fund on start-ups in Asia, reflecting the first time it has channelled capital beyond US shores.
The firm announced it had closed Fund II to new investors earlier this month after exceeding its initial funding target of US$400 million, drawing participation from 50 companies, including mainland developer China Vanke.
Brendan Wallace, co-founder and managing partner at Fifth Wall, said some of the capital raised will go towards start-ups in Asia with technologies involving artificial intelligence or robotics for smart buildings, as well as concepts that leverage blockchain technology for applications in real estate.
“In real estate, the opportunity set in Asia’s start-ups and tech ecosystem is less mature than the US. But given the scale and size of China and its real estate industry, I believe the proptech ecosystem will grow quickly,” said Wallace.
Proptech, or technologies used in the “built world” as Fifth Wall puts it, could involve anything from artificial intelligence, internet of things, data analytics, robotics and financial modelling software.