Latch, a New York-based maker of a smart access system, has raised US$70 million in a Series B financing.
The round was led by Brookfield Ventures, the technology investment arm of Canadian alternative assets manager Brookfield Asset Management.
Brookfield was joined by Lux Capital, RRE Ventures, Primary Venture Partners, Third Prime, Camber Creek, Corigin Ventures, Tishman Speyer and Balyasny Asset Management.
Brookfield Properties is installing Latch’s system throughout its multi-family properties in development, the company said.
Latch Raises $70 Million Series B Led by Brookfield Ventures
NEW YORK – Latch, creators of the world’s first smart access system, today announced a $70 million Series B financing round led by Brookfield Ventures, the technology investing arm of Brookfield Asset Management. Also joining the round are Lux Capital, RRE Ventures, Primary Venture Partners, Third Prime, Camber Creek, Corigin Ventures, Tishman Speyer, and Balyasny Asset Management, many of whom also participated in Latch’s Seed and Series A funding rounds totaling $26 million. The proceeds from the Series B round will be used to fuel Latch’s continued growth through the development of new products, enhanced capabilities, and expanded geographic reach.
Latch also announced that Brookfield Properties, a global, best-in-class real estate operating company, is installing Latch’s system throughout its multi-family properties in development, creating the world’s largest smart access ecosystem within a single portfolio.
Latch’s hardware and software systems give property owners and residents the ability to digitally manage every door in a multi-family building and provide seamless experiences for all stakeholders in a multi-family setting. Founded in 2013 by former Apple employees, Latch worked in stealth until 2016 alongside the world’s largest real estate companies to design three core access devices and create the first full-building smart access solution for apartment buildings. To date, Latch has completed projects in nearly every major U.S. metropolitan market, working with many leading developers, including Alliance Residential, Brookfield, Encore Capital Management, Prometheus, Related Group, Strategic Capital, and Toll Brothers.
“This investment from Brookfield Ventures further strengthens an already deep strategic and financial partnership between our companies and will enable Latch to meet the incredible demand for our systems,” said Luke Schoenfelder, Latch Co-Founder and CEO. “We are also grateful that our existing investors have committed so much additional capital in this latest round, which is a true testament to our team and technology.”
“Latch is excited to continue building unique experiences that enhance everyday life for apartment residents across the country,” said Ali Hussain, Latch COO. “As the first and only complete smart access solution for multifamily buildings, Latch is defining the future of convenience living.”
Josh Raffaelli, Managing Director at Brookfield Ventures, said, “We are thrilled to support Latch, the clear market leader in a nearly $25 billion space that is expected to grow at twice the rate of traditional access over the next several years. This partnership is consistent with Brookfield Ventures’ approach of identifying and investing in disruptive technologies that shape the modern economy.”
Brookfield and Latch have developed several previous partnerships. Latch’s headquarters are located in Brookfield’s 5 Manhattan West and its system is currently being installed in at least two of Brookfield’s residential properties at Greenpoint Landing in Brooklyn, NY. Additionally, last year, Brookfield announced a significant investment in Niido powered by Airbnb, for which Latch is the official access provider.
In the past 12 months, Latch has also formed partnerships with leading companies to enable a suite of new experiences for apartment dwellers, including:
UPS and other national carriers to enable automated deliveries in the lobby or package rooms of apartment buildings;
Walmart and Jet.com to create smart access density in the New York City market;
Apple to develop the first HomeKit-integrated enterprise product; and
Niido and Airbnb to optimize access for home sharing platforms.
How Latch Works
Latch’s smart access system lets residents and building owners or operators use a smartphone, keycard, or doorcode to unlock doors throughout a building, including at the main entrance, their apartment unit, gym, and other amenity spaces. Users can also grant temporary access to guests and service providers, like dog walkers and cleaners, through time-limited access codes. An embedded wide-angle camera within each device captures a still image of every interaction by a non-resident, creating a visual audit trail accessible from the Latch app and giving residents peace of mind when they are away from home. And through Latch’s national delivery partners, residents’ packages are automatically delivered safely inside their building lobby or package room.
Latch is the creator of the world’s first smart access system designed for enterprise users and access sharing. The company was founded by a team of former Apple employees and has raised $96 million in private funding from leading investors and many of the world’s largest real estate companies. Headquartered in New York City, Latch is at the forefront of changing the user experience around access.
Brookfield Asset Management Inc. is a leading global alternative asset manager with approximately $285 billion in assets under management. The company has more than a 115-year history of owning and operating assets with a focus on real estate, renewable power, infrastructure and private equity. Brookfield offers a range of public and private investment products and services, and is co-listed on the New York, Toronto and Euronext stock exchanges under the symbol BAM, BAM.A and BAMA, respectively. For more information, please visit our website at www.brookfield.com.
Brookfield Properties is a premier real estate operating company that provides integrated services across the real estate investment strategies of Brookfield Asset Management. Brookfield’s global investing expertise and access to large-scale capital, combined with Brookfield Properties’ well-established position as the commercial landlord of choice in many of the world’s most dynamic markets, provides a unique advantage. It also assures premier-quality commercial premises and optimal outcomes for our tenants, business partners and the communities in which we operate. Our vertically integrated real estate capabilities are established in each of Brookfield’s target sectors and regions around the globe, ensuring that our assets are managed to maximize the tenant experience, with a focus on integrating new real estate technologies that keep us at the forefront of innovation and sustainability. For more information, visit www.brookfieldproperties.com.
Brookfield Ventures is the technology investing arm of Brookfield Asset Management. Founded in 2017, Brookfield Ventures seeks to partner and invest growth equity into market leading technology companies that can leverage the diverse real assets and operating businesses that make up the $285 billion Brookfield economy.