KEY TAKEAWAYS
  • Capital is flowing toward and through digital real estate investment platforms. These platforms bring real estate investment opportunities to a more diverse group of investors and allow small-scale real estate projects to more easily source capital.

Key Market Movements

CrowdStreet, a provider of an online commercial real estate investment marketplace, raised $8 million of Series B venture funding in a deal led by Grotech Ventures on July 31, 2018, putting the company’s pre-money valuation at $40 million.

CapitalRise, an online property investing platform intended to help investors invest directly in real estate companies, raised GBP 2 million of seed funding from Raakhe Tandon on May 8, 2018. The company’s platform charges no fees, provides direct access to some of the finest real estate properties, and helps startup companies raise funding through crowdfunding campaigns, enabling investors to earn returns on investments per year.

BrickX, an online trading platform for investments in residential property, raised $10 million of Series A venture funding from Reinventure Group and NAB Ventures on February 28, 2018. The company’s online trading platform allows users to invest by dividing properties into parts and allows investors to earn rental income on the amount invested, enabling investors to make small, affordable investments and earn returns on their savings.

i-house, a global blockchain real estate cloud platform integrating global real estate markets with blockchain, raised $30 million of venture funding from Badwater Capital, Blockchain Capital, NEO Global Capital, and CollinStar Capital on January 18, 2018.

Roofstock, an operator of an online marketplace designed to help people to buy and sell tenant-occupied rental property, raised $42 million of Series C venture funding in a deal led by Canvas Ventures on January 18, 2018, putting the company’s pre-money valuation at $250 million.

YieldStreet, an alternative investment platform specialized in real-estate project loans, raised $113 million of Series A venture funding through a combination of debt and equity on January 10, 2018, putting the company’s pre-money valuation at $25 million. The $12.8 million portion of venture funding was led by Greycroft and Raine Ventures with participation from Saturn Partners, Expansion Venture Capital, The Family Office (TFO), and FJ Labs. A $100 million debt portion revolving credit facility was provided by an undisclosed New York-based family office.

PeerStreet raised $29.5 million of Series B venture funding in a deal led by WiL (World Innovation Lab) on April 5, 2018, putting the company’s pre-money valuation at $100 million. Andreessen Horowitz, Felicis Ventures, Thomvest Ventures, Colchis Capital Management, Solon Mack Capital, Navitas Capital, and other undisclosed investors also participated in the round.

Waltz, a developer of a transit payment application that offers an online investment opportunity in the real estate industry, raised an undisclosed amount of Series B venture funding from Argonautic Ventures on August 28, 2017. The company’s transit payment application collects small funds from numerous individual investors and pools the collective money into potential real estate projects, enabling investors to invest online in these opportunities.

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