Commercial Real Estate Services Firm to Invest in Real Estate Tech
Top real estate firms are hoping to find opportunity for growth in the midst of a tech disruption in the real estate industry. For JLL Spark, a division of JLL, the commercial real estate services firm, that opportunity has come in the form of a $100 million global venture fund. The new investment fund reportedly plans to use the $100 million to support real estate tech entrepreneur projects.
Seed and Series A funding for real estate tech startups
“Creating this $100 million venture fund through JLL Spark allows us to continue to lead the real estate industry in bringing the best proptech ideas to reality,” Christian Ulbrich, global CEO of JLL, explained in a statement. “It complements and expands our substantial ongoing investments in innovative, cutting-edge digital solutions, which is a core part of our “Beyond” strategic vision and [our] commitment to achieve ambitions for our clients.”
The funds will be used to provide both seed and Series A funding to real estate tech startups, plus later-stage funding for real estate tech initiatives in “select cases.” The size of individual investments will reportedly range from a few hundred thousand dollars to several million dollars.
Venture fund overseen by “veteran entrepreneurs”
According to the article, JLL formed JLL Spark in 2017, from Silicon Valley “veteran entrepreneurs” who will be tasked with pushing forward the real estate industry through the startup incubation of property technology, or “proptech” solutions.
“Having been entrepreneurs ourselves, we know how hard it is to bring a new product to market, especially in an industry that has been slow to adopt new technology,” said Mihir Shah, co-CEO of JLL Spark. Shah explained Spark hopes to partner with entrepreneurs and help them tap into the resources of JLL’s business lines to achieve rapid growth while creating value for JLL clients.