8 Non-Tech RE Companies To Receive The Most Venture Capital In Q1
Venture capitalists are flooding the real estate industry with capital. The firms deployed about $3B into 70 real estate companies in Q1 of this year. Though VC is known to flock to tech startups, the majority of the funds — about $2.65B — deployed last quarter were poured into non-tech companies.
From WeWork to Ladder Capital Finance, these eight non-tech global real estate companies dominated VC funding in Q1, according to data from Crunchbase.
WeWork
New York City
Funding: $1B
Investors: 16
The co-working behemoth is worth roughly $17B and is said to be in talks with Japanese telecommunications company Softbank for a $3B investment. This capital injection could give WeWork the ammunition needed to shift its business strategy by launching an investment arm to buy its own real estate.
Global Switch
London
Funding: $526M
Investors: NA
Global Switch is a leading provider and operator of multi-tenanted data center space in European and Asia-Pacific markets. The company also ranked No. 1 out of the top 10 UK startups, according to data researcher Zirra, with a valuation of $7.9B as of February.
The Lightstone Group
New York City
Funding: $305M
Investors: 1
The New York-based private real estate developer and manager received a $305M loan from Mack Real Estate Credit Strategies in March to fund the construction of an 800-foot-tall condo in Manhattan. The building, scheduled to be completed by fall 2019, will cost about $600M. The Lightstone Group will sell units on average at $2K/SF, below the $3K/SF number at some of the most expensive new projects.
e-Shang Redwood
Shanghai
Funding: $300M
Investors: 5
A leading logistics fund developer in Asia, e-Shang Redwood (ESR), is backed by some major investors, including Warburg Pincus, CPPIB and Morgan Stanley. In January the firm received a $300M investment from Warburg Pincus in a pre-IPO round of funding. Its last major investment was secured in July 2016 when Ping An Real Estate dropped $300M into the company so it could continue to build and expand its logistics centers in Japan.
ASRR Capital
Tel Aviv
Funding: $90M
Investors: NA
This public real estate company specializes in commercial and mixed-use projects and is based in Israel. Its latest fundraising venture resulted in the firm receiving a $90M construction loan to go toward Arte by Antonio Citterio. The loan came from Bank Leumi in March, as reported by The Real Deal.
Ladder Capital Finance
New York City
Funding: $80M
Investors: 1
Ladder Capital Finance, a publicly traded REIT, received a capital injection from Related Cos. in February for $80M. Related, the masterminds behind Hudson Yards and one of several New York-based developers-turned-lenders, made the investment through its investment arm, Related Real Estate Fund II.
Late last year reports surfaced that Ladder Capital Finance — which has bankrolled much of President Donald Trump's property development — was pursuing a sale as its business suffered from tightening regulations.
Phoenix Group India
Hyderabad, India
Funding: $47M
Investors: 1
The India-based real estate developer received a $46M investment in March from Altico Capital, a Mumbai-based non-banking financer. The funds will be used to refinancing some existing loans for a residential project called Jubilee Hills and a commercial development.
Knotel
New York City
Funding: $25M
Investors: 6
This New York startup provides business owners with customer headquarter facilities. In February it raised $25M in Series A funding to help the company add 40 more locations to its current 10 within the next year. The concept, deemed the Uber of office leasing, offers businesses shorter-term leases without the overhead costs associated with maintaining a functional office.
