A new fund has launched in Europe to finance proptech firms backed by €250m (£211m).
A/O PropTech plans to put its money toward tech companies that are disrupting the real estate business with technology, data science, or AI and plans to invest long-term with no exit time horizon. Funding will be spread across startups looking for Series A funding to more established firms.
One of its goals is to focus on tackling climate change through the built environment.
“A/O PropTech’s vision is underpinned by a commitment to tackle climate-related issues by investing in emerging technologies, enabling decarbonisation and sustainability in real estate,” said the firm’s launch announcement, noting that property is responsible for the emission of 30% of CO2 globally.
“In the next few weeks, A/O PropTech will be announcing additional investments in this space, at the intersection of proptech and climate tech with a European sovereign institution partnering alongside,” the fund said.
Large European institutional real estate companies with €32bn worth of assets in the residential, commercial, and hospitality sectors are contributing to the fund and are offering their properties as a proving ground for technologies it chooses to invest in.
The fund has made 10 investments so far, including firms in Europe, the US, and Israel such as Bricklane, Fornova, and Plentific.
“The disruption of the real estate industry is a long-term secular trend, which we view as a generational opportunity,” said Gregory Dewerpe, the founder of A/O PropTech. “We are dedicated to backing visionary, bold and resilient entrepreneurs, building a powerful ecosystem with fellow VCs and endeavour to make a positive impact.”
Dewerpe points out that “real estate is the biggest cause of climate change” and explains that “an integral part of our strategy is to invest in emerging technology companies targeting sustainability in real estate and fast track them into our platform ecosystem