European PropTech VC, Pi Labs, has secured three new investors who will join as limited partners (LPs) of its third institutional fund, Fund III.
The new funding will support Pi Labs’ investment strategy of identifying the next generation of proptech start-ups and build on its position as Europe’s leading proptech VC. These latest investments in the Pi Labs fund demonstrate the sustained appetite for exposure to the proptech sector amongst both UK and international investors.
With headquarters in the US, Gaedeke are the latest American name to invest in Pi Labs demonstrating the VC’s geographical growth outside of Europe. They are joined by Swedish company Europi alongside FTSE-listed office developer, Helical Plc. This follows the recent announcement that Moorfield and Elkstone Partners have also committed to Fund III.
In addition to new investors, several existing investors from Fund I and Fund II have re-invested into Fund III – demonstrating continued confidence in Pi Labs’ investment strategy. Pi Labs is expecting the amount of capital from re-ups from existing investors to exceed 100 per cent of the total size of Fund I and Fund II combined. Over the coming weeks, Pi Labs is expecting to exceed 100 per cent of its target, driven by interest from both investors from prior funds as well as new LPs joining from North America, Europe, and Asia.
Fund III has a primary focus to invest in early stage proptech start-ups – from pre-seed to series A stage – across UK, Europe, and further afield. The fund is also actively deploying capital to support the scale-up of proptech companies through the fund’s capacity to follow-on at later stages. Fund III is investing in start-ups that have developed proprietary technology to enhance any stage of the real estate value chain.
Key areas of focus for the current fund include technologies that help real estate owners achieve their decarbonisation goals, as well as next generation technologies that are powering the future of work and future of retail, in addition to artificial intelligence and robotics technology for construction and development. Having already invested in 18 companies out of the new Fund since the beginning of the pandemic, Pi Labs is Europe’s most active and most global proptech investor, with over 60 investments in its portfolio.
By participating in Fund III, the new LPs will gain access to its ecosystem, which includes global start-ups, the company’s proprietary research, ideas in built environment technology emerging from its accelerator programme and co-investments alongside Pi Labs for select opportunities. The strategic investment will allow the new LPs to trial, pilot, and deploy the latest technologies across their portfolio of properties.
Faisal Butt, CEO & Founder at Pi Labs, says: “The new partners joining our third fund is a real testament to the sustained focus and importance of the proptech sector. The sector continues to evolve and innovate, unlocking new technologies that are helping to address global issues, especially in the post-Covid landscape, and we are proud to continue to be at the forefront of proptech investing globally.
“The real estate portfolios and experience of our new partners, Helical, Gaekede and Europi, will add strategic value for Pi Labs and our growing portfolio of over 60 companies. Expanding our proptech ecosystem across Europe and internationally is central to our success, as we continue to act as the gateway between real estate investors and the rapidly changing proptech world. In addition to our new partners, we are delighted to have achieved such a high level of reinvestment from our existing investors across Fund I and Fund II, illustrating the confidence and trust we have established with our partners over many, many years.”
James Moss, Company Secretary & Group Financial Controller at Helical, says: “Helical’s investment in Pi Labs’ latest fund reflects the importance we place on supporting businesses and technologies that aim to help drive the evolution of our workplaces. As people return to the office following a period of significant disruption and enforced working from home, it’s now more important than ever that the office motivates team members, enables learning, encourages collaboration and helps foster a positive company culture.”
Jonathan Willén, CEO and co-founder of Europi Property Group, says: “Through our network in the Nordics, we look forward to being a strategic partner for Pi Labs and assisting with both investment ideas and local market knowledge in collaboration with Brunwick Ventures. At Europi we invest through an established partner network with a focus on social and environmental sustainability, therefore it is a natural corporate development for us to partner with a leading innovation group like Pi Labs.”
Sabine Stener, CEO of Gaedeke Group, says: “Technological innovation has reached the inflection point where the way we interact with the built environment is changing massively. We are excited to expand our proptech investment exposure into EMEA with Pi Labs.”
