London-based proptech venture capital fund Pi Labs has raised £17.5m toward its third fund.

Faisal Butt

Faisal Butt, chief executive, chairman, and founder of Pi Labs.

The goal for the fund would make it Pi Labs largest to date⁠—five times the value of Fund 2.

“The success of our first close of Fund 3 firmly cements our position as one of the leading European proptech VCs,” said Faisal Butt, chief executive, chairman, and founder of Pi Labs. “It is testament to the continued appetite for institutional capital to be invested into proptech.”

In June 2019, Butt said Pi Labs would double the number of startups it funds over the next five years, giving each funding from £250,000 up to £1m. In November Butt became the first person to sit on the Ministry of Housing, Communities and Local Government’s new proptech expert advisory council.

Pi Labs made several strategic hires to assist it in picking the startups to back in its third fund last October. It brought in three tech and engineering experts.

“As one of the first investors into the proptech sector, we have worked very hard over the years to build a strong portfolio community fostering collaboration between start-ups, traditional real estate companies, and our investment partners, which we believe is key to creating global scale for the companies we invest in,” Butt said.

“We are excited to be partnering with Pi Labs to jointly nurture the next generation of proptech enterprises,” said Dr Manuel Käsbauer, chief technology and innovation officer at PATRIZIA. “Our investment into the Pi Labs Fund 3 closely aligns with our endeavours to further strengthen PATRIZIA’s global innovation ecosystem and identify new solutions, which will help further improve the services we provide to our clients.”