Commerz Real invests in venture capital fund for real estate start-ups

German investor Commerz Real has taken up a stake of €5 mln in the PT 1 Early-Stage Fund II venture capital fund set up by Proptech 1 Ventures.

Other investors in the framework of a recent financing round include the USA-based proptech investor JLL Spark Global Ventures, the project developer Evoreal, the construction company Otto Wulff, and Scout 24 Group.

The fund is to have a final volume of around €100 mln and primarily invest throughout Europe in technology start-ups in the real estate industry, so-called proptechs. It will focus on major market trends such as the sustainable transformation of the real estate sector, its interplay with energy and infrastructure topics, as well as the issue of climate resilience.

Proptech 1 Ventures is an independent European venture capital fund initiator founded in 2018 and domiciled in Berlin. The first Proptech 1 venture capital fund was closed in the first quarter of 2022 with a volume of €50 mln.

’We were won over firstly by diversified access to innovative technologies in the real estate industry, and secondly by the focus on sustainability. Both are important pillars in our corporate strategy,’ said Henning Koch, the Chief Executive Officer of Commerz Real.

At a later date the investment allows for a possible direct entry into proptechs in the portfolio. ‘This is a win-win situation: start-ups and the fund are gaining a strategic partner and a potential exit route, and we as Commerz Real can observe the companies in greater detail thanks to the long collaboration, thus allowing us to make strategic decisions that are extremely well-founded,’ added Steffen Wagner, head of Business Model Innovation.


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