Pi Labs announces USD23m funding
Proptech VC, Pi Labs, has held the first close of its third Fund (Fund 3) at USD23 million. The fund which is expects to be fully raised by the end of 2020, is targeting USD75 million.
Fund 3’s first close has been achieved through a commitment of institutional capital from leading real estate investment companies including FTSE-listed Great Portland Estates PLC, FTSE-listed Assura PLC, PATRIZIA AG, among the top 10 real estate investment managers in Europe and pan-European real estate fund manager Revcap, as Pi Labs raises its largest fund to date. This funding includes commitments to the new fund and the overall Pi Labs group.
Launched in 2014, Pi Labs is Europe’s longest standing proptech VC, with an industry-leading track record across 43 investments. Pi Labs has been the first institutional investor in some of Europe’s leading proptech companies including deal origination and due diligence platform Land Technologies, property management platform Plentific, and flexible office platform OfficeRnD.
The third fund, which is expected to reach a final close at more than five times Pi Labs’ previous fund (Fund 2), has a primary focus to invest into early stage proptech start-ups across Europe and the UK. Active capital will also be deployed to support scaling proptech companies targeting mid to later stage investments.
Pi Labs, which is Europe’s first and leading proptech VC, invests in start-ups that use technology solutions to enhance any stage of the real estate value chain. Key areas of focus for the current fund include sustainability, future of work, future of retail, commercial real estate technologies, construction technology, and smart cities.
Faisal Butt, CEO, Chairman and Founder of Pi Labs, said: “The success of our first close of Fund 3 firmly cements our position as one of the leading European proptech VCs. It is testament to the continued appetite for institutional capital to be invested into proptech.”
“We look forward to working with Great Portland Estates, Revcap, Assura and PATRIZIA as our first committed strategic investors. Our plan is to continue to build on the thriving proptech ecosystem we have created in Europe, which will help some of the world’s best proptech founders to scale and become global firms. We only have room for 8 more LPs in this fund, and are pleased by the interest we have received from institutional investors globally.”
“As one of the first investors into the proptech sector, we have worked very hard over the years to build a strong portfolio community fostering collaboration between start-ups, traditional real estate companies, and our our investment partners, which we believe is key to creating global scale for the companies we invest in”
Robin Matthews, Investment Director at GPE, says: “As experts in identifying opportunities for investment into Proptech Pi Labs is the perfect strategic partner for our investment strategy. We have committed to participating in Fund 3 as we understand the profound impact and variety of benefits technology can bring to the real estate industry.”
Dr. Manuel Käsbauer, Chief Technology & Innovation Officer at PATRIZIA, commented: “We are excited to be partnering with Pi Labs to jointly nurture the next generation of proptech enterprises. Our investment into the Pi Labs Fund 3 closely aligns with our endeavours to further strengthen PATRIZIA’s global innovation ecosystem and identify new solutions, which will help further improve the services we provide to our clients.”
Fund 3 is projected to invest into 50 Proptech companies over five years, almost doubling Pi Labs’ portfolio to 100. Investment from the fund will range from GBP250,000 - GBP1 million per deal, plus follow-on capital. Pi Labs is looking to induct a further 8 professional investors into the fund, targeting institutional investors from across the UK, Europe, North America, Asia and the Middle East.
In addition to Fund 3, Pi Labs will continue to capitalise on its fast-growing accelerator programme with a batch of new investments set to be revealed later this quarter. The company expects to make 10 new investments in 2020.