A German venture capital firm specialising in proptech has set up an office in the UK and intends to begin pouring millions of euros into new tech ventures within the property industry.
The UK already punches well above its weight when it comes to external investment in proptech and the arrival of Berlin-based Proptech1 Ventures in London marks its rapidly-growing importance.
For example, online-only lettings giant OpenRent is backed by another large venture capital firm also based in Berlin, Rocket Internet, which invested £4 million in the agency two years ago and last year poured £7 million in Goodlord.
Proptech1 Ventures’ new London office is in the Square Mile’s central CityPoint office tower near Moorgate and will offer British proptech firms cash to expand their operations or products into mainland Europe, arguably a brave move given the UK is about to leave the EU.
The venture firm is a Dragon’s Den style organisation offering initial investment in companies of between €200,000 and €3 million but also access to expertise from seasoned European property and tech experts with contacts in markets across the continent.
Proptech1 Venture says it will be funding tech firms operating in all sectors of the UK property industry including sales and lettings, construction, commercial and property management.
In Germany, where it also has offices in Munich as well as Zurich in Switzerland, its most high-profile project has been Wunderflats, a flexible tenancy length renting platform and housing provider which it has led funding rounds for totalling so far €8 million.