Fifth Wall Ventures continues to push forward in 2018, closing two deals last week with companies in the real estate tech space.
The Venice-based venture capital firm, along with Miami-based homebuilder Lennar Corp. as a limited partner, sunk $135 million into Open Door Labs Inc., a San Francisco-based startup that offers online real estate brokerage services. Fifth Wall also participated in a $4.5 million venture-series investment funding round for Enertiv Inc., which offers services that measure energy use and bill tenants for real estate companies.
The deal for Open Door – which does business as Opendoor – was a model for the type of investments Fifth Wall is looking to find, said firm co-founder and Managing Partner Brad Greiwe in a blog post.
“Industry disruption doesn’t have to end with a company’s demise,” Greiwe said. “When incumbents embrace startups, businesses are not only enhanced, but they thrive. And the validation on both sides is clear: Lennar is establishing themselves as the leading tech-enabled home builder and Opendoor is going to market with buy-in and support from the largest incumbent in its category.”
Fifth Wall’s pitch when it launched in May 2017 was to find potentially industry-changing real estate tech investment opportunities for its limited partners – many of whom are established real estate players such as Lennar, which is based in Miami and keeps its operating headquarters in the Orange County city of Aliso Viejo; CBRE Group Inc. of downtown; and Santa Monica-based Macerich Co. The firm’s first fund closed with $212 in commitments.
The $135 million Open Door deal was the firm’s biggest to date, and they claim one of the biggest real estate tech investments yet.
There’s also room for smaller deals, however, such as the $4.5 million Enertiv round.
“What impressed us about Enertiv was its ability to unlock large savings in buildings that have historically lacked robust operations management capabilities,” said Fifth Wall Senior Associate Adam Demuyakor in a statement. “With potential payback periods of less than a year, the firm’s product offerings for multifamily and office landlords are very attractive.”
The firm’s investments include stakes in San Francisco-based Eden Technologies Inc., a property management firm; WiredScore Inc. of New York, which rates buildings’ technology infrastructure; and New York-based ClassPass Inc., which offers a monthly fitness membership system to users.
Former Los Angeles Dodgers outfielder Shawn Green’s new company got a boost from the club’s venture capital arm last week.
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