PieLAB Real Estate Venture Capital Fund

Investment Mandate

The brokerage and management of real estate not just in Australia but around the world has changed very little over the past 40 years. Wide scale technology adoption across the industry is changing the way real estate is transacted and investment in these technology related businesses presents an enormous opportunity to generate quality returns.  

PieLAB Venture Partners in conjunction with 43 of Australia’s leading real estate businesses that collectively account for approximately 7% of all real estate transactions and property management services in Australia have pooled their resources to invest over $10 million in the Real Estate Industry Venture Capital Fund 2016, which is Australia’s first real estate specific technology fund.

As part of a $20 million fund (currently 70% subscribed) the Real Estate Industry Venture Capital Fund will invest in approximately 8 businesses that provide products and services relevant to the real estate industry. The fund’s management team and Advisory Committee who collectively account for nearly 25% of the total investment in the fund are amongst the most influential and well connected people in the Australian real estate industry. The management team and investment committee are experienced entrepreneurs and finance professionals who have run multiple businesses and made several successful investments in and around the real estate industry.

Key Investment Highlights

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The Managing Director of PieLAB Venture Partners has committed 12.5% of the capital to the fund.

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The remaining management team and advisory committee members have committed a further 12.5% of capital to the fund.

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The fund is targeting returns of 25% per annum compounded over the life of the fund.

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The fund has already made three investments and has a strong investment pipeline with many investment opportunities coming directly from the real estate industry investors.

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The fund has a much lower risk profile than a typical Venture Capital fund because of the customer base that the current real estate industry investors can bring to each investee business.

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Returns to investors in most cases will be income and capital gains tax exempt as the fund has unconditionally registered status as an Early Stage Venture Capital Limited Partnership (ESVCLP) under the federal government’s innovation agenda.

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Investors receive a 10% non-refundable tax offset on any capital investment made in the fund also under the federal government’s innovation agenda.

How We Generate Returns

The fund invests in businesses that provide products and services to the real estate industry and helps them grow by providing:

  – Capital to help them expand their operations –

      – Expertise that understands the real estate industry –

       – Expert mentors that have a track record of entrepreneurial success –

       – Warm introductions to additional customers –

      – A network of Australia’s leading real estate industry professionals to provide all important introductions and contacts –

Our Unique Industry Focus

Our unique industry focus significantly reduces the risk of investee business failure because:

      – Real estate principles invest in the Real Estate Industry Venture Capital fund alongside select external investors –

       – The fund invests in businesses who provide services to the real estate industry –

       – Each new investee business is introduced to the investors from the real estate industry, many of which become customers of the investee businesses –

       – These real estate businesses have a specific incentive to utilise the services of the investee businesses – 

       – PieLAB’s management team help improve and grow the businesses –

       – The real estate industry investors and the PieLAB management team introduce other potential customers from the real estate industry –

       – The investee business increases in value –

       – The fund exits the business –

     – Profits generated are returned to investors –

REIVC16 Portfolio

Ashley Farrugia

ActivePipe is an early stage automated EDM (Electronic Direct Mail) SaaS marketing platform specifically targeted at the residential real estate industry.

In a very non-intrusive manner, ActivePipe enables an agent to nurture new and existing database contacts from lead through to appraisal and listing. It measures intent, qualifies potential sellers/ buyers and fundamentally changes the level of engagement and nature of conversation between agents and their database.

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Jindou Lee & Andrew MacKenzie-Ross

HappyCo provide property inspection software applications native to mobile and tablet.  Founded in 2011 in Australia, they are an early stage technology company now based in the US. Happy Inspector is used by their customers in over 30 countries, who collectively manage over 1 million rental units.

Jason Radolnik
& Jordan Kagan Gescheit

Detector Inspector is a dedicated safety and compliance company. They specialise in the installation and maintenance of residential and commercial safety solutions. Detector Inspector offers a wide range of services, including smoke alarm maintenance, essential services, gas safety and electrical services.

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Lloyd Ernst

Cloudstaff is a Philippines based (Australian incorporated) provider of business process outsourcing services for small to medium businesses (SME’s). While they offer services to a range of industries, they have a strong focus in the Australian real estate sector where they are the leading provider of outsourcing services.

Ian Campbell
& Sarah Bell

Aire are a Queensland based software company building an AI powered SaaS platform for residential real estate agencies.  Aire have a cloud-based subscription software product called Rita.  Aire’s vision is for Rita to be a digital employee for a residential real estate agency – automating processes and performing numerous sales, administration and property management tasks.

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Ruwin Perera
& Mina Radhakrishnan

Different are a Sydney based technology enabled property services business targeted toward the global home services industry.  Different have developed a smarter, faster, more reliable full service property management system.