Fifth Wall Ventures Raises $100 Million for Clicks to Bricks Retail

D2C retailers seeking an offline presence can now plead the Fifth Wall for support. Fifth Wall Ventures, a real estate-focused venture capital firm, closed a $100 million fund to invest in online brands’ early brick-and-mortar stores, the WSJ reports.

• Kevin Campos, Fifth Wall’s retail fund head, says this is the largest venture fund dedicated to bringing digital natives offline.
• Investors include retail landlords Acadia Realty Trust and Macerich Co.

In practice, Fifth Wall’s fund is as much about playing matchmaker as it is pumping brands with cash. The meet-cutes Fifth Wall stages between brands and landlords often lead to long term lease commitments. Exhibit A: After men’s apparel brand UNTUCKit met Macerich through Fifth Wall, it opened 10 stores at Macerich properties.

My takeaway: From Allbirds to Away, the online-est online brands are learning that opening stores can support scaling efforts. But that doesn’t negate IRL retail’s high costs in rent and operations. So for promising up-and-comers, Fifth Wall could lower barriers to entry.