Great Portland Estates, Patrizia, Revcap and Assura are among the property companies to put money into the European proptech VC’s latest fund, which is on track to exceed £57m this year.
Launched in 2014, Pi Labs is Europe’s longest standing proptech VC, with 43 investments to date. Faisal Butt, founding CEO and chairman, hopes to take the number of investments to around 100. This latest fund is the third Pi Labs has raised and has room for eight more investors, he added.
Pi Labs was the first institutional investor in some of Europe’s leading property technology companies including site finder LandTech, 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 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 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.”
Robin Matthews, investment director of GPE, said: “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.”
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 £250,000 to £1m per deal, plus follow-on capital. Pi Labs is looking to induct a further eight 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.