Real Estate Crowdfunding Platform Groundfloor Raises $18 Million Real Estate Crowdfunding Platform Groundfloor Raises $18 Million
happy couple

Real Estate Crowdfunding Platform Groundfloor Raises $18 Million

A peer-to-peer real estate loan investment platform has just raised a significant amount of money to fuel its growth. Groundfloor has announced an $18 million mixed funding round. This figure actually includes three separate elements. First, the platform raised $5.8 million in equity from Medipower. Additionally, $7.2 million was raised via an equity crowdfunding campaign on SeedInvest, which drew interest from more than 3,600 individuals. Finally, another $5 million was raised through convertible notes issued to 86 individuals on Groundfloor’s site.

According to Crunchbase, the startup has now raised a total of $34.8 million to date. With Medipower planning to invest up to $100 million on Groundfloor’s platform during the first year (and up to $220 million in the second year), the company is touting a total of $118 million in new capital.

Founded in 2013, Groundfloor offers “short-term, high-yield real estate debt investment.” For a minimum investment of $10, investors can participate in real estate loans and earn a percentage of the interest paid on said loan. According to the site, loans on the platform have generated more than $12.6 million in interest, earning customers returns of 10.5% to date. Also notable is that, with the latest funding round, the company is over 30% customer-owned.

Sharing the idea and philosophy behind Groundfloor while also commenting on the latest funding, the company’s CEO Brian Dally said in a statement, “This is an important moment for Groundfloor’s loyal and rapidly growing base of retail investors and the entrepreneurs whose real estate projects they finance. Retail investors deserve their share of the same pie on which hedge funds, private equity, and all other financially privileged players have been enriched in the modern Wall Street-oriented era.”

Dally continued, “This new strategic relationship supports our mission to deliver that and is purposefully structured to be consistent with our vision for a level playing field in saving and investing.” Meanwhile, Medipower Chairman — and now Groundfloor board member — Yair Goldfinger said of the startup, “The numbers don’t lie. Groundfloor has a proven track record when it comes to residential real estate in the United States. Their differentiated approach to capital markets and mission to serve retail investors delivers impressive results in loan origination and asset management that align perfectly with Medipower’s goals.”

While the headline “$118 million in new capital” declared on Groundfloor’s press release might be a bit misleading, the $18 million mixed-funding round is still impressive. In fact, the round demonstrates how startups can now raise funds from a number of different sources, including equity crowdfunding. To that point, it makes perfect sense that Groundfloor would use such a strategy, being a crowdfunding platform themselves. Following two years in which interest in retail investment has grown and with Groundfloor being open to non-accredited investors, the platform could well set up for a boom in the coming months.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....