YieldStreet, an alternative investment platform, has scored $113m in its latest round, which was made of equity and a credit facility.
The funding round included a $12.8m Series A equity injection led by Greycroft and Raine Ventures. Other investors included Saturn Ventures, Expansion Venture Capital, the Family Office and FJ Labs. An unnamed New York-based family office supplied the company with a $100m revolving credit facility.
New York-based YieldStreet helps investors access to real estate bridge loans, litigation finance, and commercial finance. The platform enables individuals to participate in investment opportunities with low stock market correlation and 8-20 per cent target yields.
All investments are vetted by experts and are backed by collateral. The company has raised $3.7m for investments, and recently hit the $250m origination milestone.
With the capital injection the company hopes to accelerate its product innovation and the growth of its investor community. YieldStreet also hopes to ‘bolster our machine learning and data analytics capability for predictive underwriting models,’ as well as launch new products, according to the company’s CEO.
The credit facility will enable the company to scale its investments pipeline, pre-fund originations and expand in to new asset classes.
YieldStreet CEO Milind Mehere said, “With the ultimate mission of ‘Prosperity for All,’ YieldStreet is making it possible for individual investors to have wealth creation opportunities similar to the top 2%.â€
As part of the transaction, Greycroft co-founder Alan Patricof will join YieldStreet’s advisory board, while Greycroft’s Ian Sigalow, Raine Ventures’ Gordon Rubenstein and a representative of the family office will join the company’s board.
This new round of capital brings the company’s total funding efforts up to $116m, following a $3m round in 2016.
Last year, Greycroft took part in the $3m funding round in to InsurTech solution Boost Insurance. The New York-based company supports startups working on innovative insurance products, distribution, data analytics, underwriting and claims.
Copyright © 2018 FinTech Global
