Proptech VC Pi Labs has announced a strategic £2.5m investment from European real estate fund manager Revcap.
The funding was secured to support Pi Labs’ international expansion, to grow its multidisciplinary team of real estate, finance and technology professionals and to invest in its platform. Andrew Pettit, founding partner of Revcap, will join the Pi Labs board.
Faisal Butt, chief executive and founder of Pi Labs, said: “Pi Labs was the first proptech VC, and today is the most active in Europe, with more than 50 portfolio companies. We have a clear mission to establish an ecosystem which enhances collaboration between our portfolio companies, traditional real estate companies and our investment partners.
“Revcap’s commitment to Pi Labs is not only an endorsement in our future but is also indicative of the wider industry’s prioritisation of proptech as it continues to become increasingly important across every facet of the real estate value chain.”
Pettit said: “As a business, we were early adopters of proptech, understanding the importance for the real estate industry to engage with new technologies to increase business efficiency, maximise productivity and help to manage risk. Pi Labs is a market-leading VC in the proptech space with a proven track record, making the business a great strategic partner for Revcap as we engage with this emerging sector.”
He added: “We want to engage with proptech in both a practical and a conceptual way. It is not only important to embed tech in day-to-day real estate operations, but to use it as a way to future-proof some traditional real estate businesses. As Pi Labs takes this important next step in raising Fund 3, we saw an opportunity to back the platform itself to help Faisal and his team to achieve meaningful scale over the next five years. We understand Pi Labs’ vision and are excited to partner with the dynamic business and team.”
Pi Labs recently announced the first close of Fund 3, which is projected to invest in 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 a follow-on capital capability. Pi Labs is looking to add a further six to 10 professional investors in 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, in addition to follow-ons.
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