GROUNDFLOOR, an investing and lending platform for real estate, has pulled in $3m in its latest funding.
The capital was raised through a crowdfunding campaign which was backed by 1,580 investors. GROUNDFLOOR has now raised a total of $18.3m in funding and has reached its goal of achieving a 20 per cent ownership by individual investors, with 3,160 people now holding a stake.
Based in the US, GROUNDFLOOR has built an online investing platform for real estate loans. Borrowers can apply for a loan from $75,000 to $2m on repayment terms up to 36 months so they can buy, fix and flip properties.
Investors can receive an average return of 10 per cent annually and support any contribution size from as little as $10. Loans are available at different risk levels to help establish diverse portfolios for users.
This investment has come after a strong period of growth for the company, which has seen its YoY revenue more than double.
Some of the other notable achievements of the company include a 160 per cent YoY increase in loans closed, surpassing 1,000, and a 139 per cent YoY increase in non-GAAP revenue to reach $2.6m.
GROUNDFLOOR co-founder and CEO Brian Dally said, “Our customers are showing the world how open private capital markets work in very practical terms.
“We’re seeing strong growth in every metric, from loan applications to the growing base of investors who want to take advantage of our high-yield, short-term investments for as little as $10. And unlike the vast majority of growth-stage startups, we’re proud that the capital fueling our growth right now is coming from our customers, not Sand Hill Road.”
The funding comes less than a year since GROUNDFLOOR previously raised funds, when It raised $4.2m in a crowdfunding campaign.
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