Venture Capital/Real Estate: MetaProp Launches Fourth Fund Targeting $200M
MetaProp specializes in Property Technology (Proptech) investments.
MetaProp, the NYC-based VC firm that backs startups in the field of real estate technology, is back in the market with a $200 million fund. Titled MetaProp Growth Select I, the fund will target more mature startups in the field. MetaProp co-founder Aaron Block will manage the fund. (Crunchbase)
New fund in the context of “The Great Disruption”
Speaking to Connect New York, Aaron Block said: “Over the past six months, the proptech ecosystem’s strong tailwinds suddenly turned into gale-force headwinds thanks to a combination of the COVID-19 health crisis and the stress it placed on the world’s supply chain, a broad real estate market downturn, and a severe global economic slowdown.”
According to the firm’s midyear 2020 report on the Global Proptech Confidence Index, the Investor Confidence Index stood at a four-year low of 5.9/10. Similarly downbeat was the Startup Confidence Index at 4.7/10.
On an optimistic note, the report said that 89% of investors and 84% of start-up founders thought that the COVID-19 crisis will accelerate the adoption of proptech in the property industry.
Further, 33% of investors would make more proptech investments in the coming year compared to the previous one.
“Some have coined it ’The Great Disruption’ with longer-term views around proptech adoption and acceleration stronger than ever,” Block added. “We are still early in the real estate industry’s technology adoption evolution. I’m confident that these unusual and trying times will lead to even more new technologies, new investment successes, and new business models for our industry.”
MetaProp’s earlier fund yet to meet its goal
MetaProp last announced its third fund titled MetaProp Ventures III, targeting a raise of $100 million. However, in July, a filing revealed that it had raised only about $ 51 million for that fund.
Meanwhile, The Real Deal reveals that more competition is brewing in the market. New funds have been launched by Fifth Wall Ventures, Navitas Capital, Moderne Ventures, and Camber Creek, it said.
Another disadvantage for MetaProp’s new fund is the firm’s traditional reliance on funding from real estate LPs. According to one unnamed investor, the real estate industry is trying to conserve capital and may not want to “deploy capital into illiquid investments.”
In 2018, MetaProp raised $40 million from investors including prominent real estate industry investors such as Cushman (NYSE: CWK), CBRE (NYSE: CBRE), JLL (NYSE: JLL), and RXR Realty.
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