Fifth Wall $100m Retail Fund targets online brands with physical plans
US-based venture capital firm Fifth Wall has closed a $100 million vehicle labelled the Retail Fund.
This is aimed at online players wanting to add physical stores to their arsenals. Because bricks and mortar is still a vital piece of the omnichannel puzzle, OK?
“Digitally native brands have opened over 1,800 stores around the US in the last decade, creating richer, more experiential customer connections, reaching new audiences, and driving sustainable growth,” a press release states.
"New e-commerce brands know the importance of being wherever their customers want them to be at all times - they simply cannot reach their full potential if they remain solely online," says Kevin Campos, Partner, Fifth Wall."
“However, they often aren't familiar with the challenges of retail real estate expansion and we've observed that many traditional VCs lack the experience to be able to meaningfully engage on issues like site selection, store design, merchandising and staffing.”
Fifth Wall has, he adds, assembled a consortium that includes many of the largest retail real estate owners. “We believe they've invested in the Retail Fund because they want to see these new brands earlier and help them succeed with thriving stores."
Check out this video for further details.