Proptech backer Pi Labs’ $90m fund raise 40% oversubscribed

Pi Labs team.

Venture capital firm Pi Labs has secured $90 million for its latest fund, which will be used to back proptech startups that are “revolutionising the real estate world through technology”.

The final close includes investments by Dutch pension provider APG, UAE developer Aldar Properties, UK property company Sellar, King’s Cross Central, Hong Kong-based firms Sino Group and Swire Properties, Nordic construction firm Kiilto, Canada’s Hopewell Group and Germany’s Jaeger Gruppe.

Pi Labs’ Fund III is Europe’s largest early stage proptech fund and was 40% oversubscribed.

Pi Labs, which specialises in backing proptech start-ups, said it will identify and invest in the next generation of enterprises that have developed proprietary technology to enhance any stage of the real estate value chain. Pi Labs already supports a portfolio of 60 companies across 15 countries and said the latest fund-raise will to double this to more than 100 companies by 2025.

Technology that achieves sustainability one of the main targets

The firm said the types of technologies it will back include those which address sustainability challenges and help property owners reach their decarbonisation goals, aid construction operations, or which affect the future of work and retail. Also within its scope are metaverse development, robotics adoption, industrial tech and the enablement of smart cities.

Fund III is Pi Labs’ largest fund to date and its primary focus will early stage proptech startups with average investments ranging from $500,000 to $1.5 million per deal, plus follow-on capital.

Fund III has already deployed capital into 21 opportunities including the US-based warehouse management platform Fulfilld’s $2.5m seed round.

Faisal Butt, CEO and Founder of Pi Labs, said: “Raising close to $100 million 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 an increased awareness of how startups are successfully scaling and solving critical, large-scale industry issues.”