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Deals & Dealmakers

Industry gives tech firm MetaProp $40M vote of confidence

Real estate tech firm MetaProp has raised $40 million in venture capital from the largest consortium of real estate supporters it has ever gathered.

RXR, PGIM Real Estate, Cushman & Wakefield, CBRE, JLL Spark and Altus Group are among those chipping in to finance a potential pilot and test “sandbox” for startups developing new technology that is changing the way real estate does business.

All told, the new fund’s limited partners offer more than 15 billion square feet of real estate across every asset type and global market.

“Because of our unique position in the market, we are able to identify emerging PropTech opportunities and to invest with conviction early in a company’s maturity,” said MetaProp partner and head of venture capital Zak Schwarzman.
MetaProp’s notable earliest stage investments include emerging PropTech startups like Bowery, Flip, Irene, Jetty, Jones, Reside, Spacious and Spruce.

This second venture capital fund, MetaProp Ventures II, LP, was more than 50 percent over-subscribed. It will invest from $150,000 to $2 million in up to 40 new PropTech software, internet of things (IoT), hardware and tech-enabled services startups.

Founded in 2015, MetaProp will continue its strategy of investing in the newest real estate technologies like 3D printing, blockchain, co-working/co-living, augmented reality and digital energy management across all global real estate asset types including residential, office, retail, hotel and industrial.

“We are seeing increasing momentum among property tech start-ups in our industry and our investment in MetaProp will expand our insight into this important ecosystem,” said Chandra Dhandapani, CBRE’s Chief Digital & Technology Officer.

“Whether we buy, build or partner to enhance our capabilities, continuing to deliver the best outcomes for clients requires that technology is embedded into every aspect of CBRE’s business.”

“The MetaProp team has earned a reputation for being PropTech’s early stage startup champions. The unique, community-driven approach to building and investing in tomorrow’s real estate technology entrepreneurs aligns with our partner-first model,” said Adam Stanley, CIO and Chief Digital Officer, Cushman & Wakefield, a MetaProp Ventures investor.

New York City Economic Development Corporation President and CEO James Patchett called the funding “a testament to the company’s continued success in helping entrepreneurs and investors get their PropTech ideas off the ground.”
Patchett added, “Real estate is one of New York’s most important economic engines, and we are proud to support efforts that fuel innovation in this critical industry.”

Since its founding, MetaProp has filled a gap in the real estate market for identifying and nurturing new technology. It has since built a coalition of strategic investors from around the world that includes LeFrak, Rudin Management, Union Square Ventures, Bain Capital, Bessemer, Fifth Wall, Thrive, and First Round. The new fund recently invested in one of New York City’s hottest PropTech startups Workframe, a company hailed for reimagining commercial space management.

Kevin Ryan, founder and chairman of Workframe, said: “I’ve seen these folks in action and they really know how to help young companies grow.

“As far as I’m concerned, real estate entrepreneurs should put MetaProp at the top of their target investor list.”

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