Fifth Wall Closes Half-Billion Dollar Fund to Decarbonize Real Estate

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

Plant in a glass pot filled with coins instead of dirt

Fifth Wall, a Los Angeles-based venture capital group, has closed a half-billion-dollar fund to decarbonize the property industry. The new money brings the group’s total managed investments to just north of $3 billion. It will be used to “invest in anything and everything to decarbonize the real estate industry,” says Brendan Wallace, co-founder and managing partner at Fifth Wall.


The real estate industry is vast, and its contribution to climate change is well documented. A recent McKinsey study estimates “[r]eal estate drives approximately 39 percent of total global emissions.” Transportation, by comparison, is responsible for around 27%.

“It's the single biggest lever the world can turn on mitigating climate change,” says Wallace. “However, as a category, it's pretty systemically under-invested in from climate venture capital funds. “Only about 6%, historically, of climate venture capital has gone into real estate-related technologies.”

Fifth Wall wants to change that by bringing together some of the biggest real estate owners—names like Marriot, Hilton and British Land—and investing their money into technologies that will help decarbonize the industry.

Fifth Wall’s portfolio includes everything from companies that make more efficient HVAC motors to carbon negative cement. The group also has financial stakes in heat pump and green hydrogen companies. There’s software of all sorts to invest in: regulatory compliance, fintech and industrial internet of things (IoT) technology that can support a real estate and construction economy that tracks carbon.

Wallace says the sheer scope of the real estate market combined with new interest in climate conscious investments helped create a demand for new fintech products that can track emissions and provide financial products that bake carbon costs into savings. “The U.S. commercial and residential real estate market is bigger than the U.S. stock market. It's the single biggest capital market on Earth,” says Wallace. “The allocators to that market are overwhelmingly saying ‘We will preferentially deploy capital to low or no carbon footprint real estate.’ So THE cost of capital has dramatically changed for lower carbon footprint real estate.”

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What Tesla's Trucking Feat Means for Natural Gas Vehicles in California

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

What Tesla's Trucking Feat Means for Natural Gas Vehicles in California
Image from Tesla

Last month, when dot.LA toured the Hexagon Purus facility in Ontario, California, multiple employees bemoaned the California Air Resources Board’s (CARB) ruling on renewable natural gas (RNG) as a hindrance to decarbonizing trucking-haul trucking. They argued that keeping RNG classified as a “near-zero emission” fuel prevented companies using financial incentives like the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, which, as the name suggests, is only available to true zero-emission trucks. The effect, they said, was that the agency was missing an opportunity to accelerate the state’s transition away from diesel.

But over the weekend, Tesla CEO Elon Musk took to Twitter to announce that the EV company’s battery powered class 8 semi-truck had completed a 500-mile trip fully loaded (to the tune of 81,000 lbs). It now appears CARB’s refusal to classify renewable natural gas (RNG) as a zero-emission fuel source was ultimately the right decision.

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Hoopla’s Deron Quon on Keeping Perspective as a Founder

Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+ Shift.com, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
Hoopla’s Deron Quon
Image courtesy of Deron Quon.

On this episode of the L.A. Venture podcast, serial founder and angel investor Deron Quon discusses the human side of entrepreneurship and how a founder’s ethos can impact company culture.

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