GROUNDFLOOR, an online real estate investment platform, has secured an additional $4.2m to its online public offering.
This new funding brings the total raised through the online crowdfunding campaign to $6.2m from 2,304 investors. GROUNDFLOOR total fundraising has now reached $13.8m.
Founded in 2013, the US-based company offers an online real estate investing platform which enables consumers from across the US to create a debt portfolio. The platform currently supports the fix-and-flip market, providing friendly loan terms such as deferred payment options.
Investors can make a contribution from as little as they can, with loan terms ranging between 6 and 12 months.
The platform works by a property buyer requesting for a short-term loan which is then funded by the investor community. Once it has been raised, the borrower purchases the house, completes repairs and sells it on, the profit is then sent back to the investors.
There are over 50,000 registered users, with a fifth of these signing up this year. Through the platform, the company has helped fund $75m across 550 real estate loans.
The company has witnessed a 64 per cent YoY revenue growth and for the year ending June 30 2018, GROUNDFLOOR reported a GAAP revenue of $1.9m.
Later this month the company is moving to a new office in Atlanta to support this growth.
GROUNDFLOOR co-founder and CEO Brian Dally said, “We launched GROUNDFLOOR five years ago to level the playing field in capital markets for the benefit of individual investors and independent real estate entrepreneurs.
“This new round of operating capital is already accelerating our growth by enabling us to continue reaching more borrowers and broadening investors’ opportunities to diversify.”
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