New York-based reality company, RXR has been pushing its proptech fund towards investors, according to RXR CEO, Scott Rechler. RXR had an initial target of $50 million in funding and will allow investors to contribute as much as $100 million in extra capital. Most recently, RXR backed accelerator for startups, MetaProp Ventures II LP and expects to rely on the firm's expertise to evaluate its potential deals.
Rechler said the genesis of the proptech fund goes back to RXR having to pass on fundraising rounds by property-focused startups such as Convene, a flexible workspace provider, and VTS, a maker of commercial real estate leasing software. Blackstone Group LP ended up investing $3.3 million in VTS in 2015, while Convene last year landed a $68 million round led by investors including Brookfield Property Partners LP, the Durst Organization, and ArrowMark Partners.
“We’ve seen how technology has become more and more ubiquitous in our business and want both the opportunity to invest and to be at the forefront of leveraging these technologies that can help us run our business more effectively,” Rechler said. The fund is targeting a close by the end of the year, he said.
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