Alpaca VC, a multi-stage venture capital firm founded in 2013, has recently closed on $78 million in commitments for its third fund and launched the new Alpaca Real Estate platform. With a focus on investing at the intersection of the physical and digital worlds, Alpaca initially invested in real estate-focused startups. However, over time, it expanded its investment areas to include proptech, construction tech, fintech, and the creator economy.
Key Takeaway
Alpaca VC has closed its third fund, raising $78 million in commitments, bringing its total raise to
94 million. The firm continues to focus on seed deals and invests at the intersection of the physical and digital worlds.
Fund III brings Alpaca’s total raise to $194 million in capital commitments. The firm remains committed to its seed deals, with an average check size of $1 million to $2 million. It aims to build a portfolio of around 30 companies with Fund III and deploy the capital over the next three to four years.
The Alpaca Real Estate Platform
Alpaca has also launched the Alpaca Real Estate (ARE) platform, which operates as a private equity real estate fund. The platform is a result of one of Alpaca’s anchor limited partners seeking to leverage the firm’s expertise in the industry to explore the built world. The ARE platform will invest in a new breed of real estate asset classes as well as traditional underpriced real estate using institutional dollars.
Daniel Carr and Peter Weiss have joined Alpaca as partners to lead the new platform, which will run independently of the venture capital fund. The ARE platform is anchored by several U.S. pension funds advised by GCM Grosvenor.
Field Study Program and Research Sprints
Alpaca has also expanded its team and launched the Built World Fund I in 2022. Additionally, the firm has implemented its Field Study program, where the team conducts 90-day research sprints into investable areas of the market. These research sprints provide market insights and targeted opportunities for the firm.
Through the Field Study program, Alpaca has been able to quickly identify investment opportunities and make informed decisions. In fact, half of the firm’s investments in 2022 have come from their Field Study work, enabling them to win deals and understand market nuances.
Alpaca’s continued success and expansion highlight its commitment to research-driven investing and its ability to adapt and explore new investment areas beyond its real estate roots. With Fund III and the Alpaca Real Estate platform, the firm is well-positioned to continue its growth and support innovative startups in various sectors.
