Venture capital firm Fifth Wall Ventures has launched with $212 million in funding from some of the nation’s largest real estate corporations.
The real estate-focused company, which has the backing of CBRE, Macerich, Lennar, Hines, Prologis, Host Hotels and Equity Residential, is looking to connect property owners with start-ups that aim to change the way workers and residents interact with their surroundings.
The venture has already committed $60 million to start-ups such as fitness classes reservation platform ClassPass, self-storage delivery firm Clutter and retailer B8ta.
According to the Los Angeles Times, the company is selling itself as a conduit for investors and start-ups. For example, ClassPass is partnering with Macerich, a retail landlord, for placing fitness studios in malls. Meanwhile, B8ta is said to be in talks to open at Macerich malls and Lowe’s stores.
“Our active engagement in Fifth Wall Ventures will provide early insight into companies and technologies that have the potential to enhance our ability to deliver great outcomes for our clients,” said CBRE Chief Digital & Technology Officer Chandra Dhandapani. “This is one vehicle, among several, that CBRE will use to identify emerging technologies, connect with top talent, build strategic partnerships and make investments that will create further competitive advantages for our clients and our company.”
Fifth Wall Ventures’ founders have experience building start-ups. Brendan Wallace and Brad Greiwe founded three firms before collaborating on Fifth Wall Ventures. Wallace is credited as a co-founder for analytics firm Identified and Latin America ride-sharing service Cabify. Greiwe, meanwhile, co-founded home-flipping firm Invitation Homes.
Aside from ClassPass, Clutter and B8ta, Fifth Wall have also invested in software firm Notarize and title insurance analysis company States Title. Its biggest investment is in Opendoor, which buys homes directly from sellers. The start-up was recently valued at $1.1 billion.