Global proptech venture capital firm Pi Labs has secured $90 million funding in its oversubscribed latest fund. It will use the fund to invest in startups that revolutionise the real estate industry with technology.
Europe’s largest early-stage proptech fund
The primary focus of the fund is to invest in early-stage proptech startups from pre-seed to Series A stage with average investments ranging from $500K to $1.5 million per deal alongside follow-on capital.
With Fund III’s LPs, Pi Labs aims to supplement the fund’s capital with additional co-investment capital both in early-stage funding rounds and during later-stage equity raises. This is Pi Labs’ third proptech fund and Europe’s largest early-stage proptech fund.
Pi Labs is looking to back the next global proptech unicorn and will deploy the capital during later stage rounds to turbocharge the scaleup of the sector’s most promising companies. It will also fund the best-performing startups from its portfolio over the life cycle of their growth journey.
With this fund, Pi Labs will identify and invest in the next generation of proptech startups that have developed proprietary technology to improve any stage of the real state value chain.
It includes technologies addressing sustainability challenges and helping real estate owners attain their decarbonisation goals, the future of work and retail, robotics adoption, construction operations, metaverse development, industrial tech, and the enablement of smart cities.
Already, Pi Labs has built a portfolio of 60 companies across 15 countries and four continents. The latest funding will support the company’s ambition to double its portfolio to over 100 companies by 2025.
Stellar list of investors
The final close of Pi Labs fund welcomed numerous blue-chip institutional investors from around the world, including the largest Dutch pension provider APG, listed UAE developer Aldar Properties, iconic London real estate developer Sellar, King’s Cross Central Limited Partnership, Hong Kong-based developers Sino Group and Swire Properties, Nordic sustainable construction solutions firm Kiilto, Canadian Hopewell Group and Germany’s Jaeger Gruppe.
The latest LPs join an existing list of renowned investors including Great Portland Estates, Patrizia, Assura, Revcap, Embassy Group, Moorfield, Elkstone Partners, Helical, Europi and Gaedeke.
Investments from Pi Labs’ Fund III
Launched in 2014, Pi Labs is Europe’s first proptech-focused VC and has been the first institutional investor in some of the world’s leading global proptech companies.
Already, Pi Labs has completed 21 investments from capital deployed from Fund III. The deals include the US-based warehouse management platform Fulfilld’s $2.5 million seed round, London-based augmented reality startup Dent Reality’s $3.4 million seed round, and Vienna-based sustainability startup GreenPass.
Faisal Butt, CEO and Founder of Pi Labs, said: “Raising close to $100m against the backdrop of the Covid-19 pandemic is unprecedented for a fund that primarily targets early-stage proptech ventures. The global profile of our latest fund’s LPs reflects the surge in institutional allocation towards the proptech sector and increased awareness of how startups are successfully scaling and solving critical, large-scale industry issues.
“Our fund being 40% oversubscribed positions us to deploy significant quantities of capital, alongside blue-chip institutions, into global markets where proptech startups are reshaping real estate sub-sectors prime for disruption. Pi Labs’ track record and ability to scout, and back, the world’s most innovative proptech companies at the earliest stages makes us a partner of choice for institutions entering the proptech sector. Having been the first proptech VC to complete successful exits and deliver returns, we look forward to partnering with our LPs to invest in new technologies that will revolutionise the built environment.”
James Sellar, Chief Executive at Sellar, commented: “Sellar’s investment in Pi Labs’ latest fund reflects the importance that we place in supporting technologies that will drive the evolution and digital transformation of the built environment sector. The startups that Pi Labs invests in are ultimately the ones that will solve the industry pressure points and challenges, including achieving a cleaner and greener world, which is fundamental when Sellar undertakes development projects.”