Tishman Speyer Secures $100M to Fund Proptech Investment
The firm expects to raise a total of $150 million in equity for the venture fund, which will target real estate technology investments.
Tishman Speyer has secured $100 million in equity commitments for The Tishman Speyer Proptech Venture Fund. The firm expects to raise a total of $150 million for the fund, which will invest in real estate technology opportunities. National Pension Service of Korea and Investment Management Corporation of Ontario led the capital raise.
The fund will target emerging and early-stage start-up ventures that seek to solve pain points in the real estate experience and that can utilize Tishman’s portfolio, experience with technology and its extensive network. Through the fund, Tishman will aim to usher in the “next generation of innovators,” according to Tishman Speyer CEO Rob Speyer.
Tishman Speyer has a long history investing in emerging technology companies. Its past investments include OpenSpace, VTS, Agora, Monograph and Blank Street, and in recent years, the firm has sought to increase its exposure to the proptech industry. In the last five years, proptech companies raised more than $110 billion in venture capital, illustrating deep opportunity in the space.
Already this year, money has continued to pour into the sector. In just the first few weeks of the year, property operations software company Facilio secured $35 million in Series B financing from Dragoneer Investment Group, Brookfield Growth, and existing investors Accel India and Tiger Global Management; venture capital firm Camber Creek closed an oversubscribed fourth fund with $325 million in investment; investment management firm Tacora, which focuses on early- and mid-stage companies, closed $250 in its first fund that will focus on a number of sectors, including proptech; European proptech VC and accelerator firm Pi Labs completed its third fund at $90 million, which it claims was oversubscribed by 40%.
Tishman believes that several sectors are still poised for major disruption, including design and construction, construction financing, leasing and tenant management, investment management, building infrastructure and sustainability and more.